The Portfolio Committee on Mineral and Petroleum Resources has welcomed the Department of Mineral and Petroleum Resources’ (DMPR) optimal spending of its budget in the 2025/26 financial year, while urging the department to improve performance outcomes in areas where targets were not achieved.
The committee received a briefing from the department on its second, third and fourth quarter performance reports, as well as its overall financial and non-financial performance for the 2025/26 financial year.
The department reported that it spent R12.82 billion of its R12.86 billion budget allocation, resulting in a net underspending of R36.95 million, or 0.29% of the total appropriation. This expenditure included a transfer of R10 billion to the Central Energy Fund (CEF) following approval by the Minister of Finance in terms of section 16(1) of the Public Finance Management Act.
According to the department, the funds were allocated to the Equalization Fund, which is managed by the CEF and intended to provide temporary relief on the basic fuel price. The intervention seeks to mitigate the impact of fuel price increases on consumers and support economic stability amid fluctuating global energy markets.
In terms of performance delivery, the department achieved 37 of its 50 annual targets, representing a 70% achievement rate. The department’s Director-General, Mr Jacob Mbele, informed the committee that the 13 targets that were not achieved have been prioritised for implementation during the 2026/27 financial year.
The committee welcomed the department’s ability to spend its allocated budget effectively but emphasised that financial performance must be matched by measurable outcomes that benefit citizens and the economy. Members added that the committee would continue to exercise rigorous oversight to ensure that areas of underperformance are addressed and that commitments made by the department are implemented.
The committee further noted the importance of interventions aimed at cushioning consumers from fuel price pressures, particularly at a time when households and businesses continue to face economic challenges.
Members reiterated the strategic role of the mineral and petroleum resources sector in supporting economic growth, industrial development and job creation. They emphasised that effective governance, sound financial management and improved performance delivery remain critical to unlocking the sector’s full potential.
While it awaits the tabling of the annual report for the year under review, the committee will continue to monitor the department’s implementation of its programmes and performance commitments during the 2026/27 financial year to ensure that public resources are used efficiently and that planned outcomes are achieved.
Justice Molafo
2 June 2026
Arrange a tour