JOHANNESBURG - Concerns are mounting over fuel tampering in South Africa, with industry insiders warning that illegal blending practices are becoming more widespread and increasingly sophisticated.
At the centre of the issue is the mixing of paraffin with diesel in order to cut costs and increase profits.
The process often involves removing or neutralising tracking markers designed to detect fraud, raising serious risks for consumers, regulators, and the broader fuel supply chain.
More than 100 suspected illegal depots have been identified across Gauteng, Mpumalanga and Limpopo.
Fuel adulteration is estimated to cost the fiscus approximately R3.6 billion a year, according to the International Trade Administration Commission.
Waal de Waal, chief operating officer at Bidvest Protea Coin, says fuel contamination has long been a concern, but the blending of diesel with paraffin and other liquids continues to increase.
ALSO READ | Government considering fuel levy cut extension
"There are a few factors that play a role. First of all, the paraffin that doesn't have a VAT implication is easy to blend with diesel. It gets mixed up to increase the revenue stream because it is freely available," De Waal said.
He explained that while a paraffin marker (often referred to as the A1 marker) is added to tax-exempt illuminating paraffin to detect illegal blending, it is becoming increasingly difficult to detect when paraffin has been mixed into diesel.
De Waal said there have been instances where unmarked products are blended with marked fuel in an attempt to neutralise detection markers.
"SARS and DMR put equipment that picks up the marker. It can't analyse the product. It can only pick up the markers. You can get rid of the marker within paraffin. You can mix that with your diesel without them knowing it. And that's a huge concern," he said.
He added that a coordinated, multidisciplinary enforcement approach is needed to address the issue effectively.
Last year, SARS found that some importers declared fuel volumes of 40,000 litres or less, while investigations revealed actual imports of up to 60,000 litres.