South African motorists are being warned of a rise in adulterated fuel in South Africa, amid record-high diesel prices in the country.
According to the CEF’s latest snapshot, the under-recovery for diesel has pulled back to around R5.93 per litre, down more than 66% over the same period.
However, even with the reduction in the expected price increase, it still means a projected price of well over R30 a litre at the pumps. And criminals want to take advantage.
Bidvest Protea Coin chief operating officer (COO) Waal de Waal said his company has identified more than 100 suspected illicit fuel depots.
The private security company’s helicopter surveillance team identified the sites in several provinces over the past several months.
Diesel adulteration involves mixing a foreign substance (i.e. illuminating paraffin) with the fuel (diesel).
The number of cases is increasing as unscrupulous businesspeople seek to benefit from the tax differential between paraffin and diesel.
This is because paraffin is not subjected to the sizeable taxes and levies that apply to fuel, and unlike petrol, diesel prices are not regulated.
This allows filling stations to set their prices in order to undercut the competition and draw in customers.
Combining these factors presents an attractive opportunity for nefarious station owners to mix the cheaper paraffin with diesel to increase its volume and sell the dirty fuel to unknowing customers for higher profits.
The practice could have disastrous consequences for vehicle owners and rob the government of billions of rand in taxes.
In an interview with eNCA, Waal de Waal said the practice of blending cheaper substances into diesel to boost profits is not new, but the scale and frequency have increased significantly in recent years.
“Mixing and blending have been around for years, but on a very small scale. But now these days it’s just getting out of hand.”
Fill up at reputable outlets
He pointed to a combination of economic incentives and regulatory loopholes that are enabling the problem to grow.
While the price gap between paraffin and diesel has narrowed somewhat, de Waal said the financial incentive remains strong enough to encourage illegal mixing.
“The difference between the price now is about R2, but if you take 2022, it was R8.80, 2024 R5.60. So it’s still cheaper than diesel. So it gets mixed with diesel just to up the revenue stream,” he said.
He added that the widespread availability of paraffin in South Africa further complicates enforcement efforts, despite regulations that exist to curb misuse.
“Paraffin in this country can’t be sold without a marker—it’s called an A1 marker specifically for a reason so that SARS and the DMRE can monitor,” de Waal explained.
However, criminal networks have found ways to bypass these safeguards. He warned that illicit operators are using sophisticated methods to remove the identifying markers from paraffin before blending it with diesel.
He added that the problem comes in where SARS and DMRE have the equipment that picks up the marker.
This limitation creates a significant enforcement gap because once you remove the marker from paraffin, you can mix it with your diesel without them knowing.
A government investigation at the end of 2023 confirmed the issue was widespread, finding that about 70 service stations across the country were selling diesel containing paraffin.
In June 2025, a joint operation by the South African Revenue Service and law enforcement authorities resulted in several arrests and the seizure of 2 million litres of adulterated fuel.
Several investigations found that some suppliers’ storage tanks contained mixtures with more than 50% paraffin.
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.
The adulterated fuel may be cheaper upfront, but it can lead to costly repairs and equipment failures over time.
South Africans are advised to purchase fuel from reputable outlets, especially those affiliated with major oil companies, to reduce the risk of buying contaminated diesel.
