Mixed response to petrol plan
2008-07-16 09:29
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.