Roodepoort petrol station in hot water for selling fuel 50 cents cheaper than normal price

The petrol station operated by a taxi association in Roodepoort has 14 days to adjust its prices and explain its business model or risk closure.

This is according to the Department of Energy after issuing the station with a compliance notice on Thursday.

“The Petroleum Amendment Act is very clear the department will take then the next stage, it will take the process forward as prescribed in the law. If they don’t respond we can close the operation. We can cease operation,” said Robert Maake, Director for Fuel Prices in the department.

The petrol station which operates from Roodepoort sells petrol for 50cents cheaper per litre than the normal price.

It is operated by the Dobsonville‚ Roodepoort‚ Leratong‚ Johannesburg Taxi Association (Dorljota) and its defense is that it provides petrol exclusively to taxi drivers.

“The product belongs to us and it depends on us. We can decide on the prices,” said Zeblon Simelane‚ the public relations officer of the association.

Maake said that they have also sent the compliance notice to the station’s supplier Petro Com to explain it’s agreement.

The department has called the legality of such a discount into question and has therefore requested the association to provide details including it’s business model detailing how they make profits among other issues.

“They [the station] are saying they have got an agreement with the supplier and the supplier is giving them a discount with which they pass on their members of the association.

“One of the things in the compliance notice is for them to clarify their business model to us. How they operate and so on. How they supply, all those kind of things will be clarified in that notice,” said Maake.

According to the department, fuel prices are supposed to be same in every zone.

“In terms of pricing in South Africa, the country is divided in to 52 pricing zones and these zones are based on the transportation costs of the fuel from the nearest supply point to the area.

“So each zone will have its own price, for example, the whole of Gauteng area is Zone 9C, so 9C has got its own price”

Source: Sowetan

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