South Africa’s fuel retailers have been warned against prematurely adjusting petrol and diesel pump prices, as well as selling adulterated diesel.
This warning was issued by Mineral and Petroleum Resources Minister Gwede Mantashe during his keynote address at the Fuels Industry Imbizo in Sandton.
He noted that the government is concerned about the number of petrol station owners who increased prices before official price adjustments were announced.
Reports of forecourts manipulating prices emerged in March and April, which the Department of Mineral and Petroleum Resources and the Fuels Industry Association of South Africa acknowledged.
At the time, motorists were panic-buying in response to skyrocketing fuel prices, creating a situation that petrol station owners could take advantage of.
In response, the Competition Commission warned fuel retailers against using the crisis as a justification for unfair or premature price increases.
In his address, Mantashe noted that recent global events have once again highlighted the importance of energy security and the vulnerability of fuel-importing countries such as South Africa to international disruptions.
“The ongoing conflict in the Middle East has once again reminded us that energy security cannot be taken for granted,” he said.
“Events occurring thousands of kilometres away continue to affect fuel prices, supply chains, investment decisions, and economic stability across the globe.”
Mantashe thanked the fuel industry for working with the government and maintaining stable fuel supplies in South Africa despite global disruptions.
However, he added that these efforts were undermined by the small number of fuel station operators who prematurely hiked prices.
“We remain troubled by incidents where some operators increased fuel prices ahead of official price adjustments,” he said.
“While these actions were limited to a minority of participants, they undermined public confidence and tarnished the reputation of the broader industry.”
“Compliance with regulatory requirements is not optional. It is fundamental to maintaining public trust and ensuring a level playing field for all participants.”
Combating adulterated diesel in South Africa
The minister highlighted his concerns regarding the growing trend of diesel adulteration, describing the practice as one of the most serious threats facing South Africa’s fuel industry.
“Equally concerning is the continued adulteration of fuel products, particularly the illegal blending of diesel with illuminating paraffin,” he said.
“It happens here and there, and we must deal with it; the state cannot do anything about it on its own, but working with the sector, we can deal with it.”
He issued this warning amid increasing reports of dirty diesel being sold by fuel retailers throughout the country.
In April, more than 100 suspected illicit fuel depots across several provinces were identified by Bidvest Protea Coin.
The company’s COO, Waal de Waal, told eNCA that this data was collected over the past few months by the company’s helicopter surveillance team.
“Mixing and blending have been around for years, but on a very small scale. But these days, it’s just getting out of hand,” De Waal said.
Addressing the problem, Mantashe noted that if fuel sector stakeholders become more involved in removing adulteration, the practice can be eradicated.
“The criminal activity undermines the rule of law, distorts the markets, they damage the equipment,” he declared.
“They compromise consumer confidence and pose a significant risk to our economy and national security. So the sector must work with the state. It’s not an option.”
Mantashe noted that the government continues to work closely with law enforcement agencies to combat the illicit trade of dirty diesel.
“However, we cannot succeed alone. Industry cooperation remains essential in identifying offenders, and we can deal with them when we identify them,” he added.
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