# Financial technology firm Verto has warned that a proposed policy making strategic petroleum stockholding mandatory could strengthen South Africa’s fuel security but increase costs for importers. The draft policy requires the State to hold 60 days of strategic fuel stocks, while wholesalers and importers must maintain 21 days of mandatory reserves. Verto says the additional inventory will tie up working capital, increase financing costs and heighten exchange-rate risks, urging businesses to assess the financial impact during the public consultation process.
Proposed fuel stock policy may raise costs for importers