Two decades ago, the used oil recycling industry in South Africa barely existed as a formal sector. Today, it is a growing, structured market that processes tens of millions of litres of used oil every year, supports hundreds of jobs across the value chain, and plays a measurable role in reducing one of South Africa's most persistent sources of environmental contamination. Understanding how this industry developed — and where it is heading — tells an important story about what happens when legislation, entrepreneurship and environmental awareness align.
The used oil industry in South Africa's early years was dominated by informal operators — individuals with drums and bakkie-loads of oil collected from workshops and sold on to whoever would buy it, with no documentation, no permits and no visibility into what happened to the oil downstream. Some of it found its way into legitimate re-refining operations. Much of it did not.
The introduction of the National Environmental Management: Waste Act in 2008, combined with growing pressure from bodies like the ROSE Foundation and increasing enforcement activity from environmental authorities, began to change the economics of informal operation. The risk of prosecution, fines and clean-up orders made proper compliance a business necessity rather than a voluntary choice.
Into this space stepped a generation of entrepreneurial operators who saw the opportunity to build legitimate, scalable businesses around used oil collection and recycling. These were not large corporations with deep pockets — many were individuals from the communities most affected by improper oil disposal, motivated by both environmental purpose and commercial opportunity.
Auto Blue Oils is a prime example. Founded in Westonaria in 2009 by Moses Mokgosi, the company built its credibility through ROSE Foundation accreditation, investment in proper collection infrastructure, and a consistent commitment to documentation and compliance. That approach opened corporate doors that informal operators could never access.
The contemporary used oil value chain in South Africa operates across several layers. At the collection end, registered operators gather used oil from generators across various sectors — automotive, industrial, mining, logistics, manufacturing and agriculture. The oil is transported in licensed vehicles to licensed storage facilities, where it is tested, batched and prepared for processing.
At the processing end, the oil is typically converted into industrial burner fuel — used by industrial operators as a lower-cost alternative to other heavy fuels. Some oil is re-refined into base oil for reuse as a lubricant. The entire chain, when functioning correctly, is a genuine circular economy in action — hazardous waste becomes a valued industrial input, and the environmental and economic costs of improper disposal are avoided entirely.
Despite the progress, the industry faces ongoing challenges. Illegal operators continue to undercut legitimate businesses by avoiding the compliance costs that responsible operators carry. Enforcement remains inconsistent — with some areas well-policed and others effectively ungoverned. And the informal sector continues to generate significant volumes of used oil that never enter the legitimate collection chain.
The opportunities, however, are substantial. South Africa's growing vehicle fleet and expanding industrial base mean that used oil volumes will continue to rise. Increasing corporate focus on supply chain sustainability and ESG reporting is driving demand for documented, accredited waste management services. And the green economy agenda creates a favourable environment for businesses that can demonstrate genuine environmental impact.
The used oil recycling industry in South Africa is not yet where it needs to be. But the trajectory is clear — more formalisation, more enforcement, better technology, and a growing recognition among generators of all sizes that proper used oil management is both a legal requirement and a sound business practice. Companies like Auto Blue Oils are at the forefront of that shift, building the infrastructure and culture of compliance that the industry needs to reach its full potential.
Auto Blue Oils — accredited, documented, reliable. Serving Gauteng and KZN since 2009.