South Africa is facing a growing problem with adulterated diesel, as rising fuel prices create new opportunities for illicit operators to profit from illegal fuel blending.
Motorists across the country are being warned about the increasing presence of contaminated diesel, which is often mixed with paraffin and sold through informal or compromised supply chains.
Recent data from the Central Energy Fund (CEF) shows that although the under-recovery for diesel has declined significantly, pump prices are still expected to exceed R30 per litre. This sustained price pressure has made fuel an attractive target for criminal activity.
Security firm Bidvest Protea Coin has identified more than 100 suspected illegal fuel depots across multiple provinces, using aerial surveillance over recent months.
High Prices Create Incentives for Fuel Fraud
The core of the issue lies in the price and tax differences between diesel and paraffin. Paraffin is not subject to the same levies as diesel, making it a cheaper alternative that can be blended to increase volume and profit margins.
Unlike petrol, diesel prices in South Africa are not strictly regulated, allowing retailers some flexibility in setting prices. This creates conditions where dishonest operators may undercut competitors by selling adulterated fuel at lower prices while still maintaining higher profit margins.
Although the price gap between diesel and paraffin has narrowed in recent years, it remains significant enough to incentivise illegal mixing. In previous years, the difference was even more pronounced, further entrenching the practice.
Sophisticated Methods Undermine Enforcement
Authorities have long attempted to control paraffin misuse by requiring the addition of chemical markers that can be detected during inspections. However, enforcement agencies face challenges as criminal networks develop methods to remove these markers before blending.
This creates a loophole that allows adulterated fuel to enter the market undetected, making it difficult for regulators such as the South African Revenue Service and the Department of Mineral Resources and Energy to trace violations.
A government investigation conducted in late 2023 confirmed that the issue is widespread, with around 70 filling stations found to be selling diesel contaminated with paraffin.
Further enforcement action in June 2025 led to multiple arrests and the seizure of approximately two million litres of adulterated fuel, highlighting the scale of the illegal trade.
The risks to consumers are significant. Adulterated diesel can cause serious damage to vehicle engines and industrial equipment, leading to costly repairs and operational disruptions.
Experts caution that while contaminated fuel may appear cheaper at the pump, the long-term financial impact can be far greater.
Consumers are therefore advised to purchase fuel from reputable service stations, particularly those associated with established oil companies, to reduce the risk of exposure to compromised fuel products.
Source: eNCA / CEF / Bidvest Protea Coin
