Big changes are coming to diesel refunds – here’s what transporters need to know

If diesel is one of your biggest operating costs, changes to the Diesel Refund Scheme are never just background noise. They affect planning, cash flow, and sometimes whether a job is still viable.
That’s why SARS’s latest announcement matters.
South Africa’s Diesel Refund Scheme is undergoing its biggest overhaul since its launch in 2001. The goal is simple on paper; reduce errors, tighten compliance and close loopholes. But on the ground, this shift could change how many transporters interact with the system entirely.

Why the diesel refund still matters

The Diesel Refund Scheme allows qualifying users to claim back part of the fuel levy and the Road Accident Fund levy on diesel used off public roads.

For sectors like agriculture, mining, rail freight, fishing and parts of the transport industry, that refund plays a real role in keeping costs manageable. Large volumes of diesel are used outside public road networks and without relief, operating costs climb fast.

For many businesses, the refund isn’t a bonus. It’s built into the maths.

Where the old system fell short

Over time, the system became difficult to manage. One major issue was that diesel refunds were tied to VAT. That link added layers of admin and timing pressure that many businesses struggled to keep up with.

Then came the logbooks. Detailed, strict and often unforgiving.

Even valid claims were rejected when records didn’t meet SARS’s exact standards. In many cases, the diesel use was legitimate, but the paperwork didn’t pass muster.

At the same time, weak upfront checks allowed ineligible applicants to register and submit claims. That exposed the scheme to abuse and, as always, stricter controls followed.

What’s changing and why it’s different this time

In December 2025, SARS confirmed a full modernisation of the Diesel Refund Scheme.

The biggest shift is structural. Diesel refunds will now be processed on a standalone digital platform, separate from VAT, under Schedule 6 of the Customs and Excise Act.

That separation alone should ease pressure. Refunds will no longer be caught up in VAT cycles, which means clearer timelines and fewer knock-on delays.

Both diesel sellers and qualifying users will need to register on the new platform. While that adds a step upfront, it improves traceability across the supply chain and makes verification easier.

For claimants, one of the most practical changes is visibility. You’ll be able to track the status of refund claims in real time, rather than waiting in uncertainty. Automated checks should also reduce basic errors and speed up processing.

Simpler logbooks, a long-awaited fix

One of the most welcome updates is the introduction of simplified diesel logbooks, tailored to different types of businesses.

Record-keeping won’t disappear, but the aim is to reduce grey areas and make compliance more realistic for how operations actually work. For many transporters, this directly addresses one of the biggest pain points under the old system.

Who still qualifies?

The scope of qualifying activities remains broad. It includes farming, mining, forestry, commercial fishing, offshore and harbour vessels, rail freight operators using diesel locomotives and electricity generation plants over 200 megawatts.

If your operation touches any of these areas, it’s worth reviewing how you fit into the new framework.

Industry response and what to do next

Industry groups have largely welcomed the changes. Representatives from organised agriculture have pointed out that the diesel refund is one of the few direct benefits available to primary producers and have supported separating it from VAT.

SARS has committed to information sessions and phased guidance, with the first already held in November 2025.

For fleet owners and transporters, the message is clear: now is the time to get familiar with the new system, review how diesel usage is tracked and make sure records are ready.

Because when fuel costs are high and margins are tight, certainty matters and this overhaul is meant to bring more of it.

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