EFF statement on DDG Maqubela’s implication of independent fuel retailers in adulterated diesel scandal

2 February 2024

The Economic Freedom Fighters (EFF) are dismayed by the Deputy Director-General of Mineral Resources and Energy, Tseliso Maqubela's claim that major fuel suppliers are unlikely to be involved in the adulterated fuel scandal. His assertion unfairly targets independent fuel retailers before investigations have produced results.

The Department of Mineral Resources and Energy is currently focusing on companies, particularly retailers, believed to be selling adulterated diesel to cut expenses and evade taxes. This is a result of the department's investigation, which uncovered that 70 out of 1000 samples obtained from service stations across the country contained diluted diesel—a blend of diesel and illuminating paraffin.

Nevertheless, while the EFF welcomes the Department's endeavours to combat wrongdoing in the energy sector, we are dismayed by Maqubela's narrow and irresponsible remarks suggesting that none of the oil majors (Shell, BP, Total, Sasol) are involved in the sale of adulterated fuel, which we believe is misguided.

By insinuating that newer brands, rather than oil majors, are solely responsible for selling adulterated diesel, Maqubela is evoking dangerous, inflammatory, and anti-competitive implications. Firstly, it is detrimental to the growth of independent fuel retailers who choose not to align with oil majors, many of which are proudly South African SMMEs.

Secondly, DDG Maqubela's remarks seek to shape the narrative that only oil majors

possess the capability to retail fuel that meets specifications. However, we find this assertion to be blatantly false, given the presence of over 500 independent filling stations nationwide.

Lastly, the DDG facilitates the consolidation of the monopolistic grip that oil majors aim to sustain in South Africa, a country purportedly committed to fostering the growth of black businesses, SMMEs, and independent traders.

This anti-competitive stance not only emboldens the oil majors but also undermines the economic advancement of independent filling stations, which predominantly operate within South Africa. This, in turn, hampers overall economic growth in the country.

The EFF, therefore, demands a fair and thorough investigation into all fuel sites, regardless of their size or ownership, to identify those accountable for selling adulterated fuel. We advocate for stringent legal action to be taken against perpetrators, including the revocation of their operating licenses. Justice must be served to uphold the integrity of the fuel industry and protect consumers from harm.

Issued by Sinawo Thambo, National Spokesperson, EFF, 2 February 2024