Mantashe’s warning to petrol stations across South Africa
Minister of Mineral and Petroleum Resources Gwede Mantashe has warned petrol stations across South Africa that regular and random fuel testing will continue to filter out those who adulterate fuel.
Replying to a recent parliamentary Q&A session, Mantashe highlighted that the Department of Mineral and Petroleum Resources (DMPR) is intensifying efforts to enforce fuel quality compliance in the country.
“The Department has established a fuel sampling and testing programme, mandated by the Regulations Regarding Petroleum Products Specifications and Standards,” Mantashe said.
“As part of this programme, both random and scheduled fuel sampling and testing are conducted to verify compliance with the minimum specifications and standards at retail and wholesale depot outlets.”
He explained that the initiative operates independently from the petroleum industry’s own monitoring systems and is part of a broader strategy to stamp out fuel adulteration, especially the illegal mixing of diesel with paraffin.
The practice has become widespread due to the significant price gap between the two fuels. Paraffin is around R6 to R7 cheaper per litre and is not taxed, making it an attractive target for criminals.
Mantashe emphasised the collaboration between the DMPR and the South African Revenue Service (SARS).
“The Department, in collaboration with SARS, is responsible for ensuring that fuel distributed in the country complies with national fuel specifications and standards.”
A key tool in this process is the Authentix A1 Marker, a multi-layered chemical security solution used to trace illuminating paraffin (IP) throughout the fuel supply chain.
This marker is required by the Customs and Excise Act and enables authorities to detect fuel tampering.
“Fuel distributed by licensed wholesalers and retailers, particularly illuminating paraffin, is marked with the Authentix A1 Marker,” Mantashe said.
“This allows us to detect and trace the presence of paraffin in diesel and enforce compliance in accordance with the Petroleum Products Act.”
In cases where petrol stations are non-compliant, Mantashe assured that a fair process is followed. “This process allows any allegedly non-compliant service station to make representations,” he said.
“In doing so, considerations such as job security and the security of fuel supply may be brought to the attention of the Controller.”
Consumer rights are also considered under the National Consumer Protection Act to ensure appropriate remedial action.
A growing problem
The warning comes amid growing concern over South Africa’s contaminated diesel problem, which is part of a larger illicit fuel industry costing the fiscus an estimated R3.6 billion annually.
According to SARS, the illegal mixing and smuggling of fuel, especially diesel adulterated with paraffin, damages vehicles and machinery and undermines the country’s revenue.
SARS has reported extensive under-declaration of imported fuel. “Some importers declare 40,000 litres, when in fact up to 60,000 litres are being brought in,” the revenue service said.
Additionally, many storage and distribution depots across the country have been implicated in fuel adulteration practices.
Avhapfani Tshifularo, executive director of the South African Petroleum Association, also warned that the problem is widespread.
“The blending of tax-free paraffin with diesel has become one of the most common practices in the illicit trade,” he said.
Paraffin, intended primarily for household use, is supposed to be marked with a tracer dye to prevent abuse.
However, Tshifularo explained that criminal networks have found ways to launder out the marker and then blend the paraffin with diesel.
“They set up massive operations to remove the marker. Once removed, the paraffin is mixed with diesel and sold at attractive prices, but it is harmful in the long run,” he said.
Tshifularo pointed to a sharp rise in paraffin sales as an indicator of the scale of the issue. “Five years ago, annual paraffin sales were about 600 million litres,” He said.
“As of December 2024, it’s easily 1.2 billion litres,” suggesting that a significant portion of this increase may enter the diesel supply chain.
He advised South Africans to be cautious when purchasing fuel. “Diesel is not regulated at the forecourt,” Tshifularo explained.
He urged motorists to avoid unusually cheap diesel and instead buy from reputable service stations affiliated with major oil companies.
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