Record fuel prices: Are South Africans getting what they pay for?
Record fuel price increases are making South Africans rethink their vehicle choices and driving behaviour. What exactly are we paying so much for?
Fuel rewards data is one of the best indicators of how urban South Africans are driving. In April, one of the country’s biggest fuel rewards programs showed a nearly 30% reduction in fuel purchases. That’s not because South Africans have, by some miracle, converted en masse to PHEVs and EVs… It’s all about the fuel price.
Basically, South Africans are driving less. Road trips and discretionary mileage are significantly down due to record fuel prices. The fuel price surge has made Sunday drives a real luxury.
This has made us wonder – are South Africans really getting what they are paying for when it comes to fuel? Are fuel prices carrying legacy levies and costs that no longer apply? Are these making fuel more expensive than it needs to be? And why is South Africa importing so much fuel when we were once capable of making nearly all our own petrol and diesel?
Why clean fuel matters
Beyond the cost factor, what is the real near-term risk when talking about fuel in South Africa? Unless you are a petrochemical engineer, fuel purity is something most South African vehicle owners never really think about … but they should.
Modern engines require high-quality, low-contaminant fuel. And contaminants aren’t always what you think they are. Sure, diesel drivers know the difference between 500 and 50 ppm diesel, or ‘low sulphur’ diesel. But there’s more to fuel contamination than just particulate matter, which can destroy injectors.
Water is the other big risk. When the fuel production and supply chain system experiences temperature and condensation issues, moisture can form and contaminate fuel. Water, in any form, isn’t a lubricant. Engine fuel injectors operate at very high pressures. That makes them highly susceptible to moisture in the fuel, which acts as a cutting agent when it is pressurised through the fuel system and injection rail.
The blended diesel risk
When fuel prices surge, especially the cost of diesel, the risk of blending becomes a real concern for South African transport operators and private vehicle owners.
Blended fuel is diesel that has been volume-enhanced (or ‘adulterated’) with kerosene. Fuel syndicates create these blends to offer lower-priced fuel to desperate buyers. Syndicates also keep most of the fuel-tax difference. How? Well, blended diesel is sold illegally.
Like high-sulphur diesel or diesel that’s been poorly transported, bunkered, and transferred (gaining dust particles and moisture), blended diesel is destructive to injectors. While there’s been a clampdown on these syndicates, some slips through the system and manage to distribute and sell blended diesel.
The risk of filling up with blended diesel can be avoided by visiting recognised forecourts and established retailers. While that can be a challenge when you’re road tripping in a diesel double cab or SUV into rural areas, smart planning by refuelling in bigger towns before turning off onto dirt tracks can avoid derailing your adventure.
Why SA needs the best fuel
Ironically, a solid proportion of South African fuel has improved in quality over the last few years… The reason is less positive – the local fuel-refining industry has collapsed.
South Africa now imports most of its petrol and diesel as fully refined products from some of the world’s best and most sophisticated refineries in the Middle East. That means a lot less of the petrol and diesel you buy is made by local refineries, some of which date back to the 1960s…
The collapse of South African refining is largely due to low-sulphur fuel requirements. Sophisticated petrol and diesel engines have become standardised on new vehicles on sale in South Africa. That means high-pressure direct injection and exhaust gas recirculation (EGR) valves. On diesels, additional emissions control systems such as AdBlue and diesel particulate filters add to the clean fuel requirement.
All those emissions-control components and turbocharged powertrains require a much higher level of fuel purity. Yet, when engineers evaluated South Africa’s future powertrain pipeline in the late 2000s and early 2010s, investors in the fuel sector and government were unwilling to spend the money to produce future-spec Euro-compliant fuels.
Fuel price structures
It would be great to have fully domestic fuel production again, potentially saving on shipping costs. But it is unlikely. Why? Upgrading local petrochemical refineries to supply the clean fuels needed for South Africa’s current and future vehicle fleet is just too expensive.
Crucially, while we’ve gone from producing nearly all the fuel we need, to importing most of it, it would appear most of the fuel levies and taxes have remained unchanged. The various levies and taxes for locally made fuel made from imported oil, versus the costs applied to fully imported fuel, surely can’t be the same?
There are further unanswered questions, such as how the carbon fuel levy works and whether it is time to update it. South Africa does not tax engine size or specific emissions outputs, unlike many other countries. All South African drivers effectively pay the same carbon fuel levy per litre of fuel. That means the effective carbon fuel tax you pay on a 1.0-litre city car is the same as with a V8 performance car.
While we all ponder what will happen to the fuel price next month and the month after that, we should instead be asking whether the legacy taxes and levies are still relevant in 2026…
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