Explosive PetroSA Scandal: R11 Billion ‘Dirty Petrol’ Deal Exposed

By: Investigative Desk | Published: June 2025

In December 2023, major fuel distributors such as TotalEnergies and Caltex began reporting alarming issues linked to a new unleaded petrol variant, Mogas 95, along South Africa’s Garden Route. Drivers experienced engine damage and corroded car paint, with some needing to respray entire vehicles :contentReference[oaicite:7]{index=7}.

Investigations traced the problem to a controversial R11-billion deal between state-owned PetroSA and little-known supplier Nako Energy, who blended fuel sourced from the UAE with toxic N‑methylaniline (NMA) :contentReference[oaicite:8]{index=8}.

❌ What Went Wrong

What began as a strategic attempt to secure affordable fuel turned into a high-risk procurement failure that shook confidence in PetroSA’s operational judgment. The state-owned oil company reportedly purchased 150 million litres of Mogas 95 unleaded petrol at what appeared to be a steep discount through its new supplier, Nako Energy. While the move generated short-term paper profits—estimated at R25 million per shipment—the cost came at the expense of fuel quality, regulatory compliance, and public trust.

Internal laboratory tests conducted by PetroSA, along with independent assessments from Sasol and Astron Energy, revealed that the petrol contained N-methylaniline (NMA) at concentrations as high as 6.6%. This level far exceeded the internationally accepted threshold of 1.2%, set to minimize health risks, engine damage, and fuel degradation. In many jurisdictions—including the European Union, China, and Russia—NMA is outright banned as a fuel additive due to its toxicity and environmental hazards.

Despite receiving multiple complaints from downstream distributors like TotalEnergies, Shell, Caltex, and Engen, PetroSA initially stood by the product, claiming it had “passed all SANS 1598 tests” (the national fuel quality standard). However, the SANS framework did not account for NMA content, which meant that the fuel could legally pass testing while still containing harmful substances.

This regulatory loophole, coupled with a lack of due diligence, internal communication failures, and weak oversight, allowed contaminated fuel to spread across the Garden Route region, affecting thousands of motorists. Reports of vehicle paint damage, engine malfunction, and increased gum deposits began to emerge just weeks after the initial fuel discharge.

By the time an internal six-person PetroSA task force launched an investigation, the damage had been done. The fuel scandal had not only cost PetroSA its credibility in the market but also led to a loss of customers, including major oil companies that shifted their supply routes away from Mossel Bay.

Ultimately, the NMA-tainted fuel debacle exposed systemic weaknesses within PetroSA’s procurement, testing, and governance procedures—highlighting the risks of prioritizing short-term financial gains over long-term operational integrity and regulatory compliance.

Industry Backlash and Safety Risks

Fuel industry leaders—Shell, Engen, Sasol, and others—launched independent testing. Their findings confirmed toxicity: high gum deposits, unstable sealing materials, and engine corrosion :contentReference[oaicite:11]{index=11}.

The state-owned entity claimed compliance, noting that standard SANS testing did not cover NMA. This loophole enabled the contaminant to pass routine quality checks :contentReference[oaicite:12]{index=12}.

Consequences and Cleanup

Once public backlash mounted, PetroSA halted distribution. The fallout included massive demurrage fees of up to R99 million per tanker, disruption of fuel supply in Mossel Bay, and loss of industry trust :contentReference[oaicite:13]{index=13}.

A quiet settlement was reached with Nako Energy in early 2025. PetroSA also overhauled its leadership and launched an internal investigation focusing on procurement flaws, quality control, and regulatory compliance :contentReference[oaicite:14]{index=14}.

Lessons Learned

This scandal underscores critical failures in risk assessment, public procurement, and quality assurance. When state entities pursue large profits, oversight mechanisms must be strong to prevent public harm.

Policymakers must review fuel standards, including mandatory screening for toxins like NMA, and enhance transparency in supplier vetting. The Mokgas 95 episode serves as a national wake-up call for regulatory reform and emphasis on consumer safety.

For more investigative stories, visit our Investigations section.

Original report: AmaBhungane.