Bidvest Protea Coin has identified 188 potential illegal fuel depots in Gauteng, as criminal networks exploit tax differences between fuel products and gaps in the supply chain. Chief operating officer Waal de Waal disclosed the figure on Carte Blanche, saying it came from ongoing investigations and intelligence-led assessments.
The number has risen sharply this year. In April, de Waal said the company had identified more than 100 suspected illicit fuel depots across the country. The new figure covers Gauteng alone.
The disclosure comes as motorists face record prices. From 7 October, wholesale 0.05% sulphur diesel rose by R2.84 a litre to R31.95 inland, and 0.005% diesel climbed to R33.29.
| Illicit fuel trade: key figures | |
|---|---|
| Suspected illegal depots, Gauteng (October 2026) | 188 |
| Suspected depots nationally (April 2026) | 100+ |
| Estimated annual loss to the fiscus | R3.6bn |
| Highest paraffin content found in diesel | 68% |
| Fuel levy and RAF levy on diesel | R6.02 a litre |
| Same levies on illuminating paraffin | R0 |
| Inland wholesale diesel (0.05%), October 2026 | R31.95 a litre |
The incentive lies in the tax structure. Diesel carries a general fuel levy of 384c a litre and a Road Accident Fund levy of 218c. Neither applies to illuminating paraffin. Criminals blend the cheaper product into diesel and sell it into the legitimate market at diesel prices.
SARS estimates that fuel adulteration costs the fiscus about R3.6bn a year, based on International Trade Administration Commission data. The revenue service has detected a national pattern of storage and distribution depots blending paraffin into diesel, with some samples containing up to 68% paraffin. Its 2024/25 annual report recorded a separate adulteration scheme that cost the fiscus R3bn.
Networks also under-declare imports. SARS found that some consignments declared at 40,000 litres or less in fact contained as much as 60,000 litres.
Detection relies on a chemical tracer. Licensed wholesalers and retailers must mark illuminating paraffin with the Authentix A1 marker, as required by the Customs and Excise Act. The Fuels Industry Association of South Africa (Fiasa) says networks run large operations to strip the marker before blending. In June, authorities uncovered a suspected marker-removal plant on a farm outside Potchefstroom.
Enforcement has stepped up. A joint intelligence operation covering 23 targets in Gauteng, Mpumalanga and KwaZulu-Natal led to the detention of 953,515 litres of contaminated diesel, six non-compliant depots, and assets and fuel worth about R367.3m. Bidvest Protea Coin says it works with the Hawks, Crime Intelligence, the Asset Forfeiture Unit and the National Prosecuting Authority, and has called for closer cooperation between private security firms, regulators and business.
Paraffin sales data points to the scale of the problem. Between 2020 and 2023, annual sales of illuminating paraffin doubled to about 1.2 million kilolitres. In the same period, the energy department found adulterated diesel at 70 filling stations, with Limpopo recording the most cases.
Fiasa has proposed taxing marked paraffin at the same rate as diesel to remove the incentive. That would require more than tripling the tax on paraffin, a fuel used for cooking and heating in many low-income households.
The costs also fall on consumers. Paraffin lacks the lubricating and cleaning additives modern diesel engines need, and vehicle warranties do not cover damage from contaminated fuel. Legitimate retailers, meanwhile, compete against operators who cut costs with adulterated products.