Warning for petrol stations in South Africa

Petrol stations are being warned that if they’re caught selling “dirty fuel”, they will not be fined but shut down. 

This stern message comes from Mikateko Mahlaule, chairperson of the Portfolio Committee on Mineral and Petroleum Resources, who stressed that contaminated diesel remains a serious concern.

Speaking with SABC News, Mahlaule said the committee has formally requested the Department of Mineral and Petroleum Resources to close any petrol or diesel stations found guilty of selling contaminated fuel.

“There is one thing that is troubling us as the committee—the alteration of fuel. It is a concern for us, and we are approaching the department to close those that are doing that.” 

Mahlaule made it clear that fines would not be enough. “We are not calling for the companies to be fined but for them to cease operating,” he added. 

“This is because they are damaging vehicles, tractors, or whatever is at the receiving end. They are damaging those things, and we are saying it’s unprofessional and a threat to business to do that.”

Contaminated fuel, especially diesel, can significantly damage engines, leading to expensive repairs for unsuspecting customers. 

The warning follows worrying trends uncovered by the Department of Mineral Resources and Energy (DMRE). 

Last year, Mineral Resources and Energy Minister Gwede Mantashe announced an increase in random fuel quality tests after discovering that at least 70 filling stations had been selling diesel diluted with illuminating paraffin. 

While paraffin is legal and taxed differently from diesel, using it to tamper with fuel is illegal. It allows operators to cut prices and boost profits at the expense of vehicle owners and the tax system.

Contaminated diesel, a mix of diesel and other substances like paraffin, fails to meet the proper regulatory standards and compromises engine performance and longevity. 

“They are damaging vehicles, and it’s unacceptable,” Mahlaule reiterated. The use of paraffin to adulterate diesel is a way for some businesses to exploit the lower taxes on paraffin.

This enables them to offer artificially cheap diesel prices while evading levies meant for proper diesel sales.

Tseliso Maqubela, the department’s former Deputy Director-General, previously said that while 70 petrol stations had been identified, the true extent of non-compliance could be far greater. 

In 2024, the department took over 1,000 fuel samples from petrol stations across South Africa to identify non-compliant stations and penalise them accordingly.

Maqubela encouraged South Africans to purchase fuel from reputable outlets, especially those affiliated with major oil companies, to reduce the risk of buying contaminated diesel.

The Portfolio Committee on Mineral and Petroleum Resources has been conducting site visits to the country’s refinery sites following concerns about the small number of operational refineries and the quality of fuel being produced.

Mahlaule said they have identified that the production of high-quality fuels such as petrol and diesel, among others, is currently at its lowest.

“We found that the country’s capacity is at its lowest because some refineries have closed. They are re-purposing their business models, and we are scared.”

With domestic refining down significantly, South Africa becomes more reliant on imported fuel, further complicating efforts to ensure quality standards. 

The committee’s latest oversight visit was to the Astron Energy Refinery in Cape Town, where it engaged with industry stakeholders to better understand the sector’s challenges and map a way forward.

Mahlaule noted that restoring and strengthening South Africa’s refining capacity is critical for fuel quality and national energy security.