Big illegal petrol station problem in South Africa

Recent revelations have brought to light a significant illegal petrol station problem in South Africa, with major players implicated in activities that bypass environmental regulations.

These issues, coupled with the sale of adulterated diesel, have underscored a troubling trend of unscrupulous practices in the fuel industry.

Documents obtained by Daily Maverick reveal that at least 12 Shell filling stations in KwaZulu-Natal (KZN) were either established or expanded illegally, in violation of mandatory environmental impact assessment (EIA) requirements.

Environmental impact assessments are crucial for identifying and mitigating potential risks associated with fuel operations, such as petrol and diesel leaks that could contaminate rivers, dams, and underground water sources.

Despite the importance of these assessments, Shell Downstream South Africa admitted that several of its Durban-based service stations were built or expanded without the necessary environmental approvals.

Following this admission, the provincial Department of Economic Development, Tourism, and Environmental Affairs fined Shell R250,000 per offence for three of its stations—located on Field Street, Clare Road, and Parthenon Street.

However, Shell appealed these fines, deeming them excessive, even though they are twenty times lower than the maximum penalty permitted by law.

In its appeal to the KZN Appeals Administrator, Shell highlighted its commitment to ensuring compliance with environmental laws.

However, Professor Jenny Hall, a senior law lecturer at the University of Johannesburg, noted that Shell’s actions did not align with its stated commitment.

Hall pointed out that Shell’s repeated applications for after-the-fact authorisations under Section 24G of the National Environmental Management Act suggest a pattern of non-compliance spanning decades.

She further criticised the appeal of already lenient fines, describing it as an attempt to downplay accountability.

The issues extend beyond Shell.

In September, the Pretoria High Court ordered BP to pay a fine of R53 million for environmental violations, marking one of the highest penalties for such crimes in South Africa.

This followed a 2019 ruling that found BP guilty of illegally constructing and upgrading 17 petrol stations in Gauteng without environmental approval as far back as 2000.

These cases highlight a widespread disregard for environmental regulations within the industry.

Adding to the sector’s woes is the discovery of adulterated diesel at approximately 70 petrol stations across the country.

The Department of Mineral and Petroleum Resources has warned that this figure may represent only a fraction of the problem.

Adulterated diesel, often diluted with paraffin or other foreign substances, fails to meet regulatory standards and can harm vehicle engines.

This practice is motivated by the price disparity between different types of fuel, enabling unscrupulous operators to increase profits at the expense of consumers and the environment.

In early 2024, South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, issued a stern warning to fuel retailers involved in the sale of contaminated diesel.

He emphasised that such practices undermine the industry’s integrity and pose risks to both consumers and the environment.

Former Deputy Director-General Tseliso Maqubela echoed these concerns, urging consumers to purchase fuel only from trusted outlets, particularly those affiliated with major oil companies, to mitigate the risks of using adulterated fuel.

The convergence of illegal station expansions, regulatory violations, and fuel adulteration reflects a deeply entrenched problem in South Africa’s fuel industry.

While authorities have taken steps to impose penalties and issue warnings, the scale of these issues suggests that stricter enforcement and heightened accountability are necessary.

Without substantial reform, the industry risks further eroding public trust and exacerbating environmental harm, leaving South Africa with a growing challenge that requires urgent attention.

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