Alarm bells for anyone who fills up with diesel in South Africa

South Africa has a major contaminated diesel problem, part of a wider illicit fuel industry that costs the fiscus around R3.6 billion annually.  

At the centre of this crisis is the illegal mixing and smuggling of fuel, particularly diesel adulterated with paraffin, which damages engines, machinery, and SARS’ bottom line. 

According to the South African Revenue Service (SARS), the country is losing an estimated R3.6 billion annually due to illicit fuel. 

Over the past decade, countries along the Maputo Corridor—South Africa, Swaziland, and Mozambique—have become key targets of organised fuel crime.

SARS has uncovered widespread under-declaration of imported fuel. “Some importers declare 40,000 litres, when in fact up to 60,000 litres are being brought in,” SARS reported. 

SARS also found that many storage and distribution depots nationwide are engaged in fuel adulteration, illegally mixing diesel with illuminating paraffin.

This tampering is especially appealing to criminals because paraffin is not taxed and is significantly cheaper than diesel, by around R6 to R7 per litre. 

Blending the two allows syndicates to sell diesel at lower prices while pocketing the difference. 

SARS has collaborated with various law enforcement agencies to tackle the issue, leading to intelligence-driven raids over the past four months.

These raids include random testing of tanker fuel composition. In some cases, contaminated diesel contained as much as 68% paraffin.

These efforts have already had a significant impact. A joint team comprising SARS and South African Police Service (SAPS) officials identified 23 key targets across Gauteng, Mpumalanga, and KwaZulu-Natal. 

They detained 953,515 litres of tainted fuel and seized assets worth over R367 million. “These syndicates can only underestimate our resolve to eradicate this criminality at their peril,” SARS said. 

“These acts threaten the very foundation of our society. Our message is clear: we will spare no effort to crush them.”

Word of caution to diesel users

Speaking to Newzroom Afrika, Avhapfani Tshifularo, the executive director of the South African Petroleum Association, echoed this concern, warning that the scale of the problem is enormous. 

He explained that the blending of tax-free paraffin with diesel has become one of the most common practices in the illicit trade. 

Paraffin is intended for household use and is supposed to be marked with a tracer dye to prevent abuse. 

However, Tshifularo said criminals have found a way around this safeguard. “They set up massive operations to launder out the marker,” he said. 

Once the marker is removed, the paraffin is blended with diesel and sold at prices that seem like a bargain but come at a significant cost.

Tshifularo noted a sharp rise in paraffin sales as evidence of this misuse. “If you look at what was sold five years back, it was roughly about 600 million litres per annum. But as of December 2024, it’s easily 1.2 billion litres.” 

This surge, he believes, reflects the scale of paraffin being diverted into the diesel supply chain.

The impact is being felt across all sectors. “You’ll find that there are operators who will sell diesel that contains paraffin to commercial customers, agricultural customers, transport companies, without them knowing, thinking it’s a good bargain,” he said. 

A government investigation around 18 months ago confirmed the extent of the issue, finding that “about 70 service stations were selling diesel that contained paraffin across the country.”

The damage to consumers can be severe. “It causes damage to vehicle engines and many other types of equipment that use diesel as a fuel,” Tshifularo warned. 

The adulterated fuel may be cheaper upfront, but can lead to costly repairs and equipment failures over time.

Tshifularo urged consumers, particularly diesel vehicle owners, to remain vigilant. “We would like to encourage all diesel car drivers to always be suspicious,” he said. 

He also advised motorists to be cautious of unusually cheap diesel. “Diesel is not regulated at the forecourt,” he explained.

“So you’ll find many competing brands along the same street. But if the discount being offered is way out of sync with anything else on that street, that must give you a hint that something might not be right.”

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

Despite the scale of the problem, Tshifularo is encouraged by recent steps taken by SARS and law enforcement. “I’m glad the authorities are doing something about it,” he said.

“We are more than keen to lend a hand to make sure that this problem is confronted.”