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Mixed response to petrol plan
16/07/2008 09:29  - (SA)  

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    Cape Town - A proposal suggesting overnight closures in a desperate attempt to keep struggling service stations in business, has been received with mixed feelings.

    Peter Morgan, CEO of the Fuel Retailer's Association, suggested on Tuesday that fuel stations no longer fill up vehicles during the night.

    He said service hours should be restricted like in the 1970s. This is not only because of the desperate financial situation of hundreds of the roughly 4 800 garages, but also because of criminals targeting these service stations.

    He said they would call on government to pressure oil companies, who in 99% of cases had contracts with service stations to remain open 24 hours.

    After hours levy

    Morgan believed garages should have the choice whether to close shop at night.

    The filling stations who wanted to remain open could do so, but a 15% levy would be added on to fuel sold after hours.

    In response, Automobile Association (AA) spokesperson Gary Ronald said such a move would impact negatively on motorists. Emergency vehicles filled up at service stations and no longer at government garages. Such a move could disadvantage emergency services.

    Werner Neitz, owner of the Winelands Engen One Stop next to the N1, said the choice of shorter service hours would depend on the unique situation of every fuel station. Between 15% and 20% of the turnover at his service station, restaurant and shop, was at night.

    "In smaller towns and residential areas, it is a different picture. If a filling station does not have a shop it is meaningless to remain open 24 hours."

    Criminals

    Neitz said security was a "hell of a headache" at night with incidents of drunken customers who caused trouble and crime like fraud with petrol purchases.

    However, Desmond Baard, owner and part-owner of service stations in Somerset West, Blouberg, Edgemead and Stellenbosch, did not agree with the night-time closures.

    "Consumers' behaviour has changed since the seventies. People who work late fill up late at night."

    Baard believed the profit margin on petrol purchases should rather be increased.

    Fanie Bekker, owner of two service stations in Bellville, said the problem was that government used them to collect fuel levies. They already paid increased bank costs for the handling of cash.

    Additionally, filling stations have to pay immediately for supplying petrol. With increased prices, they now pay between R250 000 and R300 000 for a load of petrol that used to cost R150 000. A supply of fuel has to be stored at the service station for a certain amount of time although it has already been paid for.

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      Question
    16/07/2008 09:29
    If these stations will close what will happen to the petrol attendants will they have to take a wage cut? It?s always the poor that has to get poorer while the Rich Fat Cats get richer. - Sam
     
      Just close the shop aswell.
    16/07/2008 09:32
    They can close at night, as long as they close everything, the shop, restuarants etc. included. I wonder if they will be so keen on closing there shop at 5 in the afternoon. All the garage owners I know of is very wealthy, they are not battling at all. - Mike3
     
      Closure of filling stations
    16/07/2008 09:40
    why doesnt this idiot who suggest these closures SHOW the statistics so the public can get a real view of whats really going on. This is just another ploy for the garage owners to rip off the public even more, as it is their after hours prices and those of the shops are significantly higher than those of other retial outlets. There is alredy a rumour going around that Garages up their prices by nearly 20% after 8 in the evenings for any goods purchased from their shops.......... - Ian
     
      Credit and Debit cards
    16/07/2008 09:41
    Wasn't it the filling stations the decided that they will not accept credit cards and now they complain about the cash handling. They should just be able to add the extra costs of the card to the purchase amount. - Mike#
     
      Fishy isn't it... If it ain't broke don't fix it.
    16/07/2008 09:42
    It sounds like somebody in government owns a petrol station and wants to help themselves to some levies they could introduce if this is put in place. So now because someone doesn't know how to run a successful business all businesses must close @ 5PM? Sounds fishy... - MP3
     
      Petrol station closures
    16/07/2008 09:46
    Now this sounds like an excellent opportunity to squeeze more money out of the consumer. 15% levy on fuel sold at night. While you are at it, why not charge a levy for selling fuel over lunch. Oh while you are at it, why not during the tea time break. If you are really serious about this rather go the route of the US and Europe, and bring self service pumps, and get the govt to let the consumer pay with a credit card. This way you can have self service at night, and full-service during the day. - spazool
     
      Cry me a river
    16/07/2008 09:48
    The garage owners are trying to make a mountain out of a moles-heap to try and convince gov. to up their cut of the fuel price. In truth the reason some garages are in trouble is because they are badly situated or too many garages for an area. If a few go under the problem should solve itself. Trying to get the poor consumer to suffer more because of their poor decisions is just wrong. - Ursa
     
      Milk us even more
    16/07/2008 10:00
    The more we make the more we want! As if we are not struggling enough with all the oil price increases and let's not talk about the rest. Now certain individuals who still want to go on their little luxury vacation at the end of the year wants to slap further levies on the consumer. Stuff you! - Pieter Bosch
     
      Mixed response to petrol plan
    16/07/2008 10:05
    closing down is not an option, surely there can be means to stop all these criminal activities,people will loose jobs and that's not what we all want, use prepaid, purchase a prepaid like we do on airtimes, load it to the machine on your own fill up and go - Jonathan Molepo
     
      We got too many petrol stations to start with!!
    16/07/2008 10:08
    Compare the amount of filling stations we have to other countries and in my opinion we got way too many to start with, My 5-10 min trip home passes 6 petrol stations!!!! - GGO
     
      Garages closing at night should be made only in exceptional circumstances
    16/07/2008 10:10
    Only those that are struggling to make ends meet should make representations so that they be allowed to close during night . Otherwise they will go under because of costs involved at night and not enough revenue. - Thomas Mabitsi
     
      Big hu-ha!
    16/07/2008 10:12
    A couple of months ago, when it was suggested that we get rid of petrol attendants and therefore remove that cost somponent from the fuel price, there was a big fuss made about job losses in the industry. But this amounts to exactly the same? The Fuel Retailers Association are contradicting themselves here.... I say let some of the stations close, it is economics 101, supply and demand. If the consumer suffers, no-one bothers. Why should it be any different for the retailers???? - AvgJoe
     
      not an entirely bad idea
    16/07/2008 10:18
    It would be nice to switch off the 24 hour culture we have created, and give all a chance to value and appreciate the better things in life. however, the reasoning is unsound. whereas closing for certain hours would lead to less crime in terms of stealing petrol and attacking petrol attendants, i don't understand how the stations being closed would cut down on ATM bombings? surely there would be more forecourt ATM's targeted with no one there to raise the alarm? - Lee
     
      Supply and demand
    16/07/2008 10:19
    We have long had too many petrol stations. Investigation of the suburbs reveals an over-concentration of stations. We are supposedly in a free market economy - so let us lose a few and the remaining ones can then become more profitable without consumers having to subsidise those that don't perform - Darcy
     
      Poor Consumer - Nonsense
    16/07/2008 10:20
    An average site that sells 300k liters of fuel per month, make a gross profit of R140 000. Yeah sounds like a lot, but then the oil company takes their share, wages of R11.31 per hour needs to be paid. Not even to mention electricity etc. The only money you really make is in the shop. And yes, prices are higher than average, but there you pay for convenience.Oh and Mike#, it is against the law to buy fuel on credit. ie NO CREDIT CARDS. Closing at night is ridiculous. - DevonS
     
      Travelling long distance
    16/07/2008 10:22
    What happens when one travels from JHB to Cape Town during the night, on the way one may realise that they are out of fuel, but it's night time already, now what, just wait on the highway till it's day time to fill again, before you start travelling ..... this is not progress, this is going backwards in life. D.M - Deon Moodley
     
      Perhaps there are too many stations?
    16/07/2008 10:22
    There are at least half a dozen garages within eight kilometers of my house. I only ever use one of them as the rest appear to be poorly managed and the staff appear to be doing one a favour to put in some fuel. Whatever happened to such things as competition between businesses. Shall I rush out and open a restaurant that has bad food and crappy service and then whine that I need help from someone else to ensure that I survive? - Michael
     
      Fuel Retailers
    16/07/2008 10:22
    I think the president of the Fuel retailers assoc is smoking socks if not sniffing petrol. Things have changed, everything is now 24 hours, it's the way of life now days. You will be putting us back 10 years if you start closing at night. This is a zim approach. - JOhn Shcnell
     
      Please close the garages
    16/07/2008 10:24
    Then I can steal all the liquid gold when no one is looking. Eish. - Criminal
     
      pay between R250 000 and R300 000 for a load of petrol that used to cost R150 000.
    16/07/2008 10:25
    what are these idiots on about we are the ones paying more making up that exta cost. They are forking out no more than befor because the consumer is paying higher prices...WTF? - Dean
     
      24hr petrol supply
    16/07/2008 10:38
    It should be purely a question of supply and demand - even for "critical" resource like petrol. Not all pharmacies are open 24hrs. I am sure none of the critics actually took the risk to run their own business. It will make sense for some petrol stations to run 24hrs and some not. Let the entrepreneur, like in all other sectors, evaluate his risk of operating hours. Don't be another Health Minister. If you are not happy with the service. Start your own business and see if you can do better. - Carel
     
      Bank reposessions
    16/07/2008 10:38
    Word has it (STD Bank business banker told me this) that bank reposessions of vehicles is on the increase due to people not being able to cope with increased rates and petrol prices. I.e fewer people are driving vehicles. Are powers that be going to up the price again to compensate for the drop if fuel sales then? So much for plucking the chicken, they are killing the chicken!! - Jeni
     
      Petrol station-closure at night
    16/07/2008 10:39
    I feel that in certain areas, where traffic hardly exists at night-then the decision is okay to close. However, on roads like the N1, N3 etc-it is essential that garages remain opened at night. We should be progressing and not regressing like the 70s. Randall - Randall Subban
     
      Why not ?
    16/07/2008 10:49
    I have no problem with the closures... Is it really that difficult to refuel during the day? It is a fact that garages make very little profit from fuel sales. Taken operational costs into account it simply makes good business sence to close some stations at night. - Stephan
     
      Self-service the way to go
    16/07/2008 10:53
    I live in the UK where I have to pump my own petrol and pay either by credit/debit card or the cashier. Further, most pumps close overnight except on highways or 24 hour retailers like Tesco's (Pick 'n Pay equivalent). Further, petrol is NOT regulated as in SA, which means I can shop around if i really wanted. So again the industry and daft SA government is trying to stifle the economy, what IDIOTS!!! - Jameel Golding
     
      fuel on credit
    16/07/2008 11:05
    to Devon S : if it is against the law to buy fuel on credit, why can i use my garage card for fuel? get your facts straight. - louise
     
      Let us be...pleeease!
    16/07/2008 11:08
    Would people living in the UK or wherever please let us deal with our own problems without interference? We don't need their advice and, surely, we don't need their insults when we asked nothing of them. I'm sure there are plenty websites dedicated to their countries! Pleeeaase! - Chris-T
     
      night closing of fuel stations
    16/07/2008 11:14
    Fuel retailers Ass.are asking Goverment to close.citing costs and escalating crime.What they really wany is a increase in Prices!!!!!. Have the public really looked at the prices at the shops at the service stations.They are really ripping off Joe Public.Service station owners do not really want to close as the PROFITS generating from these shops ofsetts all there COSTS.This is surely a ploy for the Petrol Companies and Owners to MILK us DRY. - rashid
     
      Mike#
    16/07/2008 11:19
    The purchase of fuel on credit cards was prohibited by law in the early 80's because it was felt that fuel should not be bought on credit - it went against the concept of price regulation. - Margaret
     
      Petrol Station Closure
    16/07/2008 11:27
    It is aamazing that Peter Morgan can even think this, as far as I know if you start a business it is based on business plans, financial forecasts and sound business oppurtunities. Now the general public must be made to pay for a persons bad and poor planning. Is the public going to help all strugling businesses of people who cannot plan to have the various hands knowing what the other one is doing. Wake up and smell the roses. - Andrew
     
         
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