[ad_1]
(Fake images)
- The illicit fuel trade is putting them out of business, legal retailers say, and they want action.
- A new team of police and tax agents has been created to inspect gas stations and warehouses.
- This is in line with the amendments to the Petroleum Products Act, which focuses largely on diesel.
- The retail price of diesel is unregulated, but “skimming” and dilution, which results in discounted retail rates, have become a major concern of the government.
- For more articles, visit www.BusinessInsider.co.za.
Fines of up to one million rand and a prison sentence of a decade could await those who violate fuel laws, as the government plans an organized crackdown on the illicit trade.
The rise in illegal fuel merchants and unlicensed warehouses has risen dramatically in recent years and threatens the collapse of the retail industry, according to Fuel Retail Association (FRA) CEO Reggie Sibiya, who has called for a regulation. and stricter enforcement.
Now the sector has a new draft rules and a new public oversight forum for petroleum products, spearheaded by police officers and fiscal agents, that will help identify those who operate outside the law in manufacturing, wholesale and retail sale of gasoline and diesel.
At the same time, the new definitions for gasoline and diesel grades under the Petroleum Products Act are aligning legal quality standards with the South African National Standard (SANS).
South Africa’s fuel retail sector is highly competitive, with approximately 4,600 service stations spread across the country, according to the South African Petroleum Industry Association, and it can be very lucrative. But creating a legal site that meets strict requirements requires a large capital investment and taxes are high, making black market trading even more lucrative and illegal operators can easily undermine their licensed counterparts.
READ | The price of gasoline in April may be 25% higher than a year ago. This is what is going to be imposed
The illegal diesel trade is the most common illicit activity within the fuel retail sector, according to lobbyists such as the FRA. While there is a base price per liter set by the energy department, the retail price of diesel, unlike gasoline, is not regulated in South Africa.
Diesel, industry players say, is commonly drawn from trucks in “diesel skimming” or diluted with paraffin.
The Petroleum Products Public Law Enforcement Forum, Mantashe announced Wednesday, has been authorized to conduct random checks at gas stations and warehouses.
It will also look for wholesalers that sell directly to the public, unlicensed operators, undisclosed warehousing facilities, and frontal empowerment.
More importantly for consumers, it will also look for “huge” discounts on diesel, adulteration, substandard gasoline or diesel in general, and the sale of ULP 93 at the price of ULP 95 to unsuspecting retailers and motorists, especially in outlying areas.
The department says incidents of non-compliance should be reported to regional inspectors.
Receive a daily news update on your cell phone. Or receive the best of our site by email
Go to the Business Insider home page for more stories.
[ad_2]
