The recent collapse of PetroSA has brought attention to the country's inadequate fuel standards, which have been criticized for being too lenient. The fuel contamination scandal in the Garden Route, which caused damage to vehicles, was linked to the fuel additive N-methylaniline. This additive is banned in many countries, including Europe, China, and Russia, but remains legal in South Africa due to lax testing standards. According to Bobby Ramagwede, CEO of the Automobile Association of South Africa, this highlights the need for Parliament to rectify the situation.
In 2024, motorists in the Garden Route experienced problems with their vehicles after filling up with petrol, which contained high levels of N-methylaniline. The affected vehicles required respraying, and although the issue was resolved, many motorists were left unaware of the cause. An investigation by amaBhungane revealed that the petrol was supplied by Nako Energy, a junior trader, and contained more than 6% of the additive, exceeding the recommended level of 1%. Sasol and Astron Energy analyzed the fuel and confirmed the high levels of N-methylaniline.
PetroSA's financial struggles led to a deal with Nako Energy, which involved the purchase of 11 cargoes of petrol worth approximately R7.4 billion. However, the deal was contingent on PetroSA selling 50 million liters of petrol per month, which proved challenging. Between April and August 2025, PetroSA sold only 16 million liters, raising concerns about the company's ability to recover its debt. Nako Energy subsequently ceded its claim to Plane Tree Capital, which demanded R620,519,979 plus interest.
The collapse of PetroSA has significant implications for the country's fuel supply and storage infrastructure. The company's assets, including storage capacity, import terminals, and port handling facilities, are at risk of being sold or transferred to a new entity. This could have far-reaching consequences for fleet operators and the broader economy. According to Ramagwede, it is essential that the country knows who will take over these assets, at what price, and under what obligations to continue supplying fuel.
The South African National Petroleum Company Bill, which aims to merge PetroSA with other state entities, has been put forward to address the company's debt. However, Ramagwede argues that the bill should not be passed without a full disclosure of PetroSA's liabilities. He suggests that an audited schedule of liabilities should be tabled before the vote, rather than after. This would provide greater transparency and accountability in the management of the country's fuel resources.
Ramagwede has proposed several measures to address the issues with South Africa's fuel standards. These include adding N-methylaniline to the national petrol specification, publishing the test method, and setting a date for the first test. He also recommends that the fuel quality testing regime be published in full, including sampling methods, frequency, and quarterly results. Furthermore, he suggests that a route to redress be established for motorists whose vehicles were damaged due to the contaminated fuel.
The need for reform in South Africa's fuel standards has been highlighted by the PetroSA collapse. Ramagwede argues that the current standards are not adequate, as they do not measure substances like N-methylaniline. This has resulted in the sale of fuel that would not be accepted in other countries. The Automobile Association has been advocating for changes to the fuel standards for two years, and Ramagwede hopes that Parliament will take action to address this issue.
Key points
- The collapse of PetroSA highlights the need for urgent reform in South Africa's fuel standards.
- The fuel contamination scandal in the Garden Route was caused by high levels of N-methylaniline, a banned additive in many countries.
- The South African National Petroleum Company Bill should not be passed without a full disclosure of PetroSA's liabilities.
