As the South African Revenue Service (SARS) rolls out the biggest change to the diesel refund system in 25 years, local primary producers are facing a major shift in how they claim diesel rebates.
From 1 April 2026, on-land primary sectors – including farming, forestry, and mining – can claim a 100% rebate on eligible diesel usage, up from the previous 80%.
SARS is also moving the process to a standalone digital platform, decoupling it from VAT returns. This means claims in future will be scrutinised under an automated validation process.
“For businesses in mining, agriculture, and energy, the reporting load is already massive,” says Ricky Luntz, CEO of Refuel.
“While the increase to a 100% rebate is a welcome relief, many companies still rely on manual logbooks and spreadsheets. Under the new SARS system, these fragmented, and often estimated, records are a significant audit risk.”
The end of manual logging
SARS has separated diesel refunds from VAT201 returns, and now treats these claims as a dedicated Customs and Excise process.
Current record-high fuel prices and tight margins mean a rejected claim or a SARS penalty due to poor record-keeping can be financially devastating.
This means record-keeping needs to advance in line with SARS’ shifts to a more automated, efficient process.
The industry is looking toward IoT (Internet of Things) and AI-driven technology to bridge the gap. By using industry compliant hardware and automated software, businesses can track fuel from the moment it is delivered through the consumption process. IoT solutions can also classify it according to rebate categories.
“You can’t manage what you don’t measure,” says Luntz. “SARS requires a level of verifiable accuracy that manual logs don’t reach. A digitised fuel ecosystem gives companies a tamper-proof trail. It ensures that when an auditor asks for proof, the business has a defensible, data-backed answer.”
A tool for survival in a tough market
An automated fuel tracking process isn’t just about satisfying SARS; it’s about operational efficiency and cost management. As fuel prices reach record highs and margins tighten, being able to accurately claim diesel rebates and minimise wastage provides businesses with a significant cash flow and profit boost.
These tracking systems show managers exactly where their fuel is going, even in the most challenging environments – like deep‑level mines, remote agricultural operations, or high‑throughput energy facilities.
This data serves a dual purpose. It automates tax compliance and simultaneously flags anomalies that could signal theft or waste.
“At the end of the day, it’s about businesses turning a heavy administrative chore into a strategic advantage,” Luntz concludes. “Clear, reliable fuel data isn’t just about getting a refund – it’s about staying competitive and protecting your margins.”