Western Cape demands information from national government on who is selling fake diesel

by | Jan 23, 2024

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A government probe discovered 70 petrol stations selling diesel doped with paraffin, with four in the Western Cape. This practice is harmful to engines and reduces SARS revenue.

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In a troubling revelation, a Governmental Probe has uncovered that 70 petrol stations across South Africa, including four in the Western Cape, are involved in the illicit practice of selling watered-down diesel mixed with illuminated paraffin.

This alarming discovery poses a severe threat to vehicle engines, raising concerns about potential mechanical problems. The Fuel Retailers Association (FRA) and the AA are urging the Department of Mineral Resource and Energy (DMRE) to take decisive punitive action against these fuel distribution sites.

The DMRE, after conducting “regular and random testing” between April and December last year, found that 70 stations had sold diesel with “compromised quality.” The revelation has prompted calls for the immediate closure and prosecution of distributors engaging in this illegal practice, as warned by DMRE Minister Gwede Mantashe.

The FRA is pointing fingers at both licensed and unlicensed wholesalers involved in selling substandard diesel, emphasizing that only retailers are legally allowed to sell to the public. The AA echoed concerns about the danger of mixing fuels, emphasizing its potential to cause significant damage to vehicle engines.

The DMRE’s investigation identified contaminated diesel at filling stations in various provinces, including Mpumalanga, Limpopo, North West, KwaZulu-Natal, Gauteng, Western Cape, Free State, Eastern Cape, and Northern Cape. The department is following a prescribed process to address non-compliance, including reporting such cases to the South African Revenue Service for potential tax evasion charges.

Meanwhile, in the Western Cape, the Democratic Alliance (DA) has expressed deep concern over the alleged involvement of four petrol stations in the illicit practice. The DA is urging Minister Gwede Mantashe to publicly name these stations to raise awareness among residents.

The act of selling altered fuel not only jeopardizes the safety of vehicles but also constitutes illegal and fraudulent activity. As South Africa grapples with this dodgy diesel scandal, concerns about potential harm to vehicles and the financial exploitation of consumers are at the forefront. The competition among major players in the country’s growing online retail landscape is intensifying, presenting challenges and opportunities amid transformative changes in consumer behavior.

Illuminated paraffin

Illuminating paraffin (IP) poses significant risks to vehicle engines, and doping the fuel with IP reduces the amount of national revenue extracted from the fuel economy, as IP is less dense than diesel.

The practice involves blending cheaper IP with diesel to cut costs, leading to potential engine damage. Although short-term engine operation seems unaffected, long-term use can result in increased wear due to IP’s lower viscosity and lubricity.

Contaminated diesel exhibits reduced viscosity, density, and flashpoint, along with elevated sulfur concentration. While these changes may not immediately fail quality specifications, they impact fuel efficiency, safety, and emissions control. IP’s illegal addition to diesel represents a loss of revenue for South Africa’s revenue services (SARS). To combat this, SARS introduced a chemical marker in IP, detectable using a lateral-flow test kit.

The kit offers a simple yes/no response but doesn’t quantify IP levels. Additional testing at SARS-approved labs, using gas chromatography-mass spectroscopy, determines IP concentration accurately. However, this second-level test is more costly and outsourced.

As the nation grapples with this issue, maintaining diesel quality is crucial to mitigate risks and ensure efficient vehicle operation. The economic impact of IP contamination emphasizes the need for stringent measures and regular testing to safeguard both vehicles and national revenue.

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