South Africa’s diesel rebate system has undergone its most significant change in 25 years, changing the value of the rebate and the way it is administered, says Ricky Luntz, CEO of Refuel.
From April 1, qualifying on-land sectors, including mining, agriculture and forestry, can claim a 100% rebate on eligible diesel usage – up from the previous 80%.
At the same time, the South African Revenue Service (SARS) has moved diesel rebate claims to a standalone digital platform, separating the process from value-added tax (VAT) returns and introducing automated validation.
For businesses in mining, agriculture and energy, the reporting load is already massive. While the increase to 100% rebate provides relief, many companies still rely on manual logbooks and spreadsheets. Under the new SARS system, these fragmented, and often estimated, records present a significant audit risk.
SARS now treats diesel rebate claims as a dedicated customs and excise process. The shift to automated validation means that record-keeping must meet a higher standard of accuracy and verification.
Manual logging methods do not provide the level of verifiable accuracy required under the revised system, particularly as claims are no longer processed alongside VAT returns.
The change introduces additional risk where records cannot be substantiated. With fuel prices remaining high and margins under pressure, rejected claims or penalties linked to poor record-keeping can have a direct financial impact.
The industry is increasingly turning to automated tracking systems to support these compliance requirements. These systems enable fuel to be tracked from delivery through to consumption with data used to support classification under rebate categories.
A digitised fuel ecosystem provides a tamper-proof trail, ensuring that, when an auditor requests proof, the business has a defensible, data-backed record.
Improved tracking also provides visibility into fuel usage, allowing businesses to identify inconsistencies or losses and manage consumption more effectively.
Under the revised framework, access to diesel rebates is increasingly linked to the ability to provide accurate, verifiable records aligned with SARS’ digital validation process.
