25 July 2023
By: Gerrit Bezuidenhout
Agricultural machinery manufacturers and fuel suppliers are stepping up their warnings to farmers about the dangers of cheap diesel.
“Direct input costs, which include fuel, are very high, and unscrupulous diesel blenders exploit the situation by delivering diesel that does not meet standards,” says Johan Harlaar of FPS Bulk Diesel. Harlaar says diesel blenders add paraffin, which is much cheaper than diesel, to increase their profit margin.
“The engines of tractors, harvesters and high-pressure sprayers are not designed to operate at those high levels of paraffin content. The engine’s fuel injectors then struggle and the engine gets damaged. One injector costs about R19 000, and the damage is significant when six of them need to be replaced.”
Francois Oelofsen, key account manager at Shell, says although there is a marker in paraffin that indicates its presence in diesel, the unscrupulous blenders remove the marker and circumvent tests for it.
“However, there are other parameters such as viscosity, flashpoint and cetane levels that are also tested. To stay within these limits, used oil is added to the diesel, among other things. It is this mixture, which consists of more than just ordinary paraffin, that is then sold to farmers.
“Furthermore, the flashpoint of this fuel is much lower, which means higher fuel consumption. Ultimately, the farmer ends up paying much more for this cheaper fuel than he thought.”
It is becoming increasingly difficult for legitimate diesel distributors to compete with these companies, says Harlaar. “Given the current price of paraffin in Gauteng, diesel is already 63 cents per litre cheaper if you add 10% paraffin. The profits of these companies when 20%-35% or even more paraffin is added are astronomical.
“We operate on a margin of about R1.28 per litre, but some of these companies offer discounts of R1.50 to R2 per litre. It is simply not sustainable. While a buyer may get a load or two of diesel at much cheaper prices, a fuel supplier cannot sustain that discount with prevailing prices.
”Harlaar urged farmers not to make fuel purchases solely based on price. “When the calculations are made of what it will cost a farmer in the long run – higher fuel consumption, higher maintenance costs and replacement costs, and the risk that your machinery supplier will not recognise the tractor or harvester’s warranty due to the use of non-standard diesel – it is simply not worth it to use a doubtful supplier in the short term.”
