Mineral and Petroleum Resources Minister Gwede Mantashe has issued a strong warning to South Africa’s fuel industry, calling for urgent action against fuel adulteration and other illegal practices that threaten consumer confidence, damage vehicles, and undermine the country’s energy security.
Speaking at the inaugural Fuels Industry Association of South Africa (FIASA) Imbizo in Johannesburg on Wednesday, Mantashe said government and industry stakeholders must work together to eliminate criminal activities within the fuel sector.
“The sector must work with the state. It’s not an option; we must work together to deal with these issues,” Mantashe told delegates.
Diesel-Paraffin Blending Remains a Major Concern
Among the issues highlighted by the minister was the illegal practice of blending diesel with paraffin, a form of fuel adulteration that continues to affect parts of the market.
According to Mantashe, the practice harms consumers, damages equipment, distorts fair competition, and poses broader risks to the country’s economy.
“The criminal activity undermines the rule of law, disturbs markets, damages equipment, compromises consumer confidence, and poses a significant risk to our economy and national security,” he said.
The warning comes amid growing concerns about fuel quality and compliance within South Africa’s petroleum industry.
Fuel Retailers Accused of Premature Price Increases
Mantashe also criticised some fuel retailers for allegedly increasing fuel prices before official fuel price adjustments take effect.
“We were troubled by incidents where some operators increased fuel prices ahead of the official price increase,” he said.
“You go to a petrol station and discover that the price of diesel has been increased in anticipation of the increase next week.”
The minister said such conduct damages public trust and unfairly impacts consumers already facing rising transport and living costs.
“We publish the prices, but people put their own prices up there, and the industry is quiet about it. The industry must talk about those issues,” he added.
Middle East Conflict Raises Fuel Supply Concerns
Mantashe acknowledged that ongoing instability in the Middle East, particularly disruptions affecting the Strait of Hormuz, has highlighted South Africa’s vulnerability to international fuel supply shocks.
“The ongoing conflict in the Middle East has once again reminded us that energy security cannot be taken for granted,” he said.
The Strait of Hormuz is one of the world’s most important oil shipping routes, with significant volumes of crude oil and refined petroleum products passing through the waterway daily.
Any disruption to traffic in the region has the potential to affect global fuel supplies and prices.
Government Pushes for More Local Refining Capacity
The minister reaffirmed government’s commitment to strengthening South Africa’s domestic fuel refining capacity as part of a broader strategy to improve energy security.
South Africa has become increasingly reliant on imported refined fuel following the closure of several local refineries in recent years.
Mantashe said existing refining operations, together with Sasol’s facilities, currently provide only about 40% of the country’s fuel requirements.
“If you take the two refineries and Sasol, it gives us security for 40% of our needs, and the rest is dependent on imported processed goods,” he said.
Government is now focused on revitalising PetroSA’s refining operations and expanding domestic refining capacity.
“We are committed to opening up the PetroSA refining capacity, and that capacity will take internal refining to a different level than 40%,” Mantashe said.
He explained that increasing local refining capacity would reduce South Africa’s exposure to geopolitical risks and international supply disruptions.
“If you import processed goods from the Middle East and there is war in the Middle East, the risk goes up immediately.”
Conventional Fuels Still Critical to South Africa’s Economy
While acknowledging the global shift towards cleaner energy sources, Mantashe cautioned against moving too quickly away from traditional energy resources.
He argued that oil, gas, and coal will continue to play a vital role in South Africa’s economy for many years and warned against dismantling existing infrastructure before alternative technologies are fully capable of meeting the country’s energy needs.
“I’m advising the industry not to plan just on aspirations. Deal with the material conditions that you must confront,” he said.
The minister’s comments highlight government’s balancing act between pursuing an energy transition and maintaining reliable fuel supplies for industries that remain heavily dependent on conventional fuels, including transport, logistics, mining, and manufacturing.
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