One of the most well-known and significant firms in South Africa is Sasol Limited (JSE: SOL), which you have undoubtedly heard of if you are considering investing on the Johannesburg Stock Exchange (JSE). Is Sasol stock still a wise investment in 2025, though, given the erratic nature of energy markets and the pressure on fossil fuels worldwide?
We’ll examine what drives Sasol, its recent performance, and if it merits inclusion in your portfolio this year.
What Is Sasol?
Sasol is a global integrated chemicals and energy company. Headquartered in Sandton, Johannesburg, Sasol was founded in the 1950s and became known for its pioneering work in coal-to-liquids (CTL) and gas-to-liquids (GTL) technology. It’s a major player in South Africa’s energy sector, producing fuels, chemicals, and electricity.
In short: Sasol powers South Africa — literally.
Sasol’s Stock Performance: The Rollercoaster Ride
Sasol’s share price has been anything but boring. Over the last few years, the company experienced a sharp decline during the COVID-19 crash in 2020, trading as low as R30 per share. Since then, however, it has rebounded significantly, trading in the range of R250–R300 as of early 2025.
This bounce-back was driven by:
- The recovery of global oil prices
- Cost-cutting measures
- Improved operational performance
- Progress on its climate strategy
But it’s not all sunshine. Sasol still faces environmental, regulatory, and operational risks, especially as global markets shift away from fossil fuels.
Is Sasol a Good Investment in 2025?
Here’s a quick breakdown of the pros and cons of investing in Sasol stock this year:
Pros:
- Exposure to oil and gas markets: If you believe oil prices will stay elevated, Sasol benefits directly.
- Dividend-paying stock: Sasol resumed dividend payments, which is great for income-focused investors.
- Strong presence in South Africa and beyond: Sasol has strategic assets in the U.S., Europe, and Asia.
- Undervalued by some metrics: For value investors, Sasol’s price-to-earnings ratio may still appear attractive compared to international peers.
Cons:
- Environmental pressures: Sasol is one of the largest emitters of greenhouse gases in South Africa.
- Global energy transition: As the world shifts to renewables, Sasol will need to adapt or risk being left behind.
- Volatility: The share price is highly sensitive to oil price fluctuations, exchange rates, and political instability.
Sasol’s Renewable Transition: Can It Compete in the Green Era?
Sasol has publicly committed to achieving net zero emissions by 2050, with plans to increase its focus on green hydrogen, sustainable aviation fuels, and carbon capture. It’s a long road ahead, but early signs of transformation are showing — especially with joint ventures and strategic partnerships aimed at cleaner technology.
If Sasol successfully transitions, it could position itself as a leader in the low-carbon energy space in Africa.
Tips for Investing in Sasol Stock
- Do your homework: Monitor global oil prices, local regulatory updates, and Sasol’s quarterly earnings.
- Diversify: Sasol shouldn’t be your only exposure to the energy sector or the JSE.
- Watch the rand: Currency fluctuations can impact profits, especially with offshore operations.
Final Thoughts: Buy, Hold, or Sell?
Sasol stock is not for the faint-hearted. It’s cyclical, volatile, and highly sensitive to macroeconomic trends. However, for long-term investors who believe in the future of African energy and chemical production, Sasol offers a unique opportunity — especially if you catch it at the right price.