The South African Revenue Service (SARS) has discovered two fuel depots it believes are partaking in the practice of distributing contaminated diesel in South Africa.
This comes after the Department of Mineral Resources and Energy (DMRE) uncovered at least 70 filling stations around the nation selling diesel watered down with illuminating paraffin to unsuspecting motorists for profiteering purposes.
As reported by Business Day, the two identified facilities are located in Meyerton, Gauteng, and Louis Trichardt, Limpopo. Both are owned by the same company which the taxman is investigating for violations of the Customs and Excise Act relating to the illicit trading, transport, and “mixing and blending of fuel products.”
SARS’s preliminary findings showed that the company’s involvement in the local fuel industry is vast. Its tax returns detailed revenue of around R5.6 billion, VAT turnover of R7 billion, and Pay As You Earn obligations of R1.1 billion between 2019 and 2023.
During the same period, it received inflows of R8.6 billion through its various bank accounts.
SARS identified the Meyerton site as one of particular interest, as it allegedly found materials that allude to illegal activities being carried out on the premises.
Illuminating paraffin sold in South Africa includes a chemical marker that signals its classification as it does not attract the same taxes and levies as diesel and aviation paraffin. It is this marker that is generally looked for to determine if a diesel sample has been tampered with.
SARS reportedly discovered a lab with testing devices used to detect the chemical marker at the Meyerton fuel depot.
This raised concerns that the facility could be washing out the marker to obfuscate any blending that has taken place, and it is using these devices to ensure that its fuels look clean when using traditional testing methods.
Subsequent samples from the Meyerton facility tested positive for the adulteration of diesel.
Diesel drivers beware
Executive Director of the Fuels Industry Association of South Africa, Fani Tshifularo, warned diesel drivers earlier this year not to let down their guard as the issue of dirty diesel sales remains prevalent in South Africa.
The dangers of filling up a vehicle with adulterated diesel are plentiful.
Fuels are designed with the perfect mix of components to offer adequate lubrication for the engine, however, paraffin does not have the same lubrication properties which may cause excessive grinding of components.
Another issue is that paraffin has a lower flashpoint than diesel, which is defined as the minimum temperature at which fuel produces enough vapour to ignite. This can lead to engine knocking – a phenomenon when fuel burns unevenly in a system – which can put unnecessary wear and tear on your car’s mechanical innards.
Contaminated fuel can also cause the propulsion system to run at a much higher temperature than it was designed for, which accelerates the deterioration of the motor.
As a final blow to victims of the crime, most manufacturer warranties do not cover engine damage arising from contaminated diesel as the motor is not built to consume paraffin, meaning owners will instead have to claim the damages from their insurer.
The DMRE advised drivers to look at the price for a possible hint that a filling stop is selling dodgy fuels.
It highlighted that if a particular location provides a discount of R1.00/litre or more in comparison to competitors in the area, it would be wise to steer clear of these pumps as there is a good chance they’re harbouring adulterated diesel.
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