Illegal paraffin blending may affect up to 800m litres of diesel a year, says FIASA
Industry research cited by FIASA estimates that illegal paraffin blending affects between 5% and 7% of South Africa’s diesel market, potentially costing the fiscus billions of rand and damaging vehicles.
New research shows illegal blending of diesel with paraffin could account for up to 800 million litres of the South African diesel market annually. The Fuels Industry Association of South Africa (FIASA) cited a credible national estimate ranging from 5% to 7% of the market, translating to 595 million to 800 million litres per year.
This illicit trade is valued at R15.3 billion, with associated tax losses between R3.6 billion and R4.2 billion per year. FIASA warned that rising legitimate diesel prices might further bolster the illicit trade, with adulterated diesel currently discounted by up to R3.02 per litre. Diesel sales have risen in recent years, peaking at 1.4 billion litres in 2023 before dropping to 1.195 billion litres in 2024.
Sales of illuminating paraffin, however, have remained high, peaking at 1.4 billion litres in 2023 before easing to 1.195 billion litres in 2024. This pattern suggests some demand may be driven by financial incentives to blend paraffin into diesel. Government testing in 2024 detected diesel adulteration in 70 out of 1,070 samples, with concentrations of the A1 marker used in paraffin reaching up to 68%.
South African Revenue Service (SARS) reported a national trend of illegal blending, seizing 953,515 litres of contaminated diesel and detaining six fuel depots. The problem is particularly prevalent in North West, Mpumalanga, and Limpopo, with reports emerging in Gauteng and KwaZulu-Natal as well. Fraudulent paraffin reduces diesel's lubricity, accelerating wear in high-pressure pumps and injectors, potentially causing hidden damage to vehicles without noticeable symptoms.
FIASA advised consumers to buy from reputable suppliers and be wary of sellers unable to provide proper documentation. The South African Minister of Mineral and Petroleum Resources described illegal diesel-paraffin blending as a criminal activity that undermines the rule of law, distorts markets, damages equipment, compromises consumer confidence, and poses risks to the economy and national security.
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