[imagesource:pexels]

South African journalists have exposed a disturbing web of illegal activities within South Africa’s fuel industry, implicating major players in practices that undermine environmental regulations and consumer trust.

From unlawful petrol station expansions to the sale of ‘adulterated’ diesel, the scale of the violations has shocked both specialists in the field and regular Saffas alike.

Documents obtained by Daily Maverick reveal that at least 12 Shell petrol stations in KwaZulu-Natal (KZN) were established or expanded without adhering to mandatory environmental impact assessment (EIA) requirements. The checks and balances in place are meant to determine serious risks such as fuel leaks that could contaminate water sources, including rivers, dams, and underground reservoirs. Sadly, it’s not just our ocean that’s feeling the brunt of pollution these days.

Shell Downstream South Africa has subsequently admitted to building or upgrading several Durban-based service stations without the necessary environmental approvals. In light of this, the KZN Department of Economic Development, Tourism, and Environmental Affairs has klapped Shell with a R250,000 fine. Now, this acually isn’t the total fine, but per offence, for three stations in Durban – on Field Street, Clare Road, and Parthenon Street. That’s a big slap on the wrist.

Shell then had the audacity to appeal the fines, arguing they were excessive, despite being twenty times lower than the maximum penalty allowed by law. The company asserted its commitment to environmental compliance, but critics and the general public remain unconvinced.

Professor Jenny Hall, a senior law lecturer at the University of Johannesburg, highlighted that Shell’s repeated use of ‘after-the-fact authorisations’ under Section 24G of the National Environmental Management Act points to a long-standing pattern of non-compliance. Hall criticised Shell’s appeal of the fines as a move to downplay accountability, a case of the company playing the “better to beg for forgiveness than ask for permission” game.

Shell isn’t the only major player under scrutiny. In September of this year, BP was ordered by the Pretoria High Court to pay a record fine of R53 million for environmental violations. The ruling followed a 2019 finding that BP had illegally constructed and upgraded 17 petrol stations in Gauteng without the necessary environmental approvals – some dating back as far as 2000.

This penalty marks one of the highest fines ever imposed for environmental crimes in South Africa, which seems fair when the health and safety of South Africans and our beautiful environment is at stake.

Adding to the industry’s woes is the growing prevalence of ‘adulterated diesel,’ discovered at approximately 70 petrol stations nationwide. The Department of Mineral and Petroleum Resources has warned that this number could be just the tip of the iceberg.

Adulterated diesel, often diluted with paraffin or other foreign substances, can seriously damage vehicles and go against all the industry safety guidelines. This practice is driven by the price disparity between fuels, allowing unscrupulous retailers to boost profits at the expense of consumers and the environment.

In early 2024, South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, issued a stern warning to fuel retailers involved in selling contaminated diesel:

Such practices undermine the industry’s integrity and pose risks to both consumers and the environment.

Former Deputy Director-General Tseliso Maqubela echoed this sentiment, urging consumers to buy fuel only from trusted outlets, particularly those affiliated with major oil companies, to minimise the risk of encountering dodgy products.

While authorities have taken steps to impose penalties and issue warnings, the scale of the issue highlights the need for stricter enforcement and greater accountability.

Perhaps an even bigger slap on the risk next time, financially speaking, for the companies at fault?

[source:businesstech]