16/10/2024
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Petrol station warning in South Africa
Petrol outlets selling contaminated diesel are still a concern in 2024, and these businesses are warned that an aggressive campaign of random fuel testing is still ongoing to root out this illegal practice.
In early 2024, South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, issued a stark warning to petrol stations across the country, addressing a growing concern over the sale of contaminated diesel.
The minister announced that random fuel quality tests at petrol stations would be increased in an effort to curb the illegal practice of selling tainted diesel.
This move followed a disturbing discovery by the Department of Mineral Resources and Energy (DMRE), which identified at least 70 filling stations selling diesel diluted with illuminating paraffin.
Contaminated diesel refers to fuel that does not meet the proper regulatory standards due to the presence of foreign substances, such as paraffin, which affects the fuel’s performance and can harm vehicles.
In South Africa, this adulteration is not only harmful but also illegal, as it takes advantage of tax disparities between fuels.
Paraffin, which is not subject to the hefty taxes imposed on petrol and diesel, offers unscrupulous operators a way to increase their profits.
By blending paraffin with diesel, businesses can undercut their competition by lowering prices and luring customers into what seems like a bargain while evading the appropriate fuel taxes and levies.
However, this deceptive practice poses a serious threat to both consumers and the broader economy.
One of the key concerns raised by Mantashe in his parliamentary address was the increasing number of cases linked to this issue.
“The number of cases is increasing as unscrupulous businesspeople seek to benefit from the tax differential between paraffin and diesel,” he stated.
Unlike petrol, diesel prices in South Africa are not regulated, which means that stations have the freedom to set their own prices.
This lack of regulation provides fertile ground for exploitation, as businesses can make significant financial gains by selling contaminated fuel at slightly lower rates.
Unfortunately, the implications extend far beyond financial loss; customers unknowingly using contaminated diesel could suffer damage to their vehicles’ engines, leading to costly repairs.
To combat this growing problem, the DMRE has initiated an aggressive campaign of random fuel testing.
In an earlier interview with eNCA, Tseliso Maqubela, former Deputy Director-General of the department, reinforced the government’s commitment to eradicating this illegal activity.
According to Maqubela, the department planned to take over 1,000 fuel samples from petrol stations across the country in 2024.
These tests are critical for identifying non-compliant stations and penalising them accordingly.
“Actions include several penalties, such as non-compliance notices, informing the revenue service to initiate a tax audit, and even being shut down,” Maqubela said.
Despite these efforts, the problem of contaminated diesel appears to be more widespread than initially thought.
While 70 petrol stations had been identified by the end of 2023, Maqubela suggested that the true extent of non-compliance could be far greater.
However, he reassured consumers that they could avoid this issue by purchasing fuel from trusted outlets, particularly those associated with major oil companies.
“You don’t find the non-compliance samples from your major dealers that are linked to major oil companies,” he added, pointing to established brands as safer choices for motorists looking to avoid contaminated fuel.
The ramifications of this issue are far-reaching, not only undermining consumer trust but also affecting the country’s revenue system.
As contaminated diesel continues to circulate, authorities are working to tighten regulations and hold violators accountable.
BusinessTech reached out to the Department several times to get an update on the testing and the challenges confronting the sector regarding fuel quality, but we received no response by the time of publishing.
With the government’s increased testing efforts, petrol stations involved in this illegal activity are under heightened scrutiny.
For consumers, vigilance is key—sticking to reputable service stations and paying attention to fuel quality can help prevent costly damage and support efforts to eradicate the practice of selling contaminated diesel.
While progress is being made, the issue of fuel adulteration highlights ongoing challenges within South Africa’s fuel industry as the fight to ensure quality and compliance continues.
