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Rising petrol prices have led to a significant decrease in petrol
sales, suggesting that many smaller petrol stations may be forced to
close if the price spiral continues.
While some sources claim the deregulation of fuel prices is
imminent, others have shot down the possibility, saying trade unions
would never allow it due to the threat of job losses.
Peter Noke, spokesperson for the SA Petrol Retailers' Association, said
the decrease in petrol sales was "an indication that the economy is
pinching", but more especially that rising petrol prices were hurting
motorists. In respect of possible deregulation, he said this was "not far off" due
to increasing pressure from oil companies and big business.
Noke, however, cautioned against deregulation, saying it would put the
viability of small petrol stations at risk, with the consequent threat
of job losses. Fuel retailers are heavily regulated and operate off very tight margins.
According to Noke, the static gross profit of petrol retailers is
currently 6,5 percent. Effectively that means that, on average, the
retailer keeps 64,7c from every litre of petrol sold. Of
that, 20,4c must go to wages for pump attendants. The remaining 44,3c
is left for the retailer to pay all other operating expenses.
Noke estimated that there are about 56 000 pump attendants in South
Africa, with the average pump attendant's wage feeding about five
people. The closing of petrol stations would have a disastrous effect on
unemployment, not to mention the people dependent on those wages, he
said.
Noke confirmed that a number of individual retailers had reported decreases of up to 12 percent in petrol sales.
One Cape Town service station owner, who did not wish to be named,
confirmed that his petrol sales had declined. "This is bad news
because in this business it is all about volumes. You
have a fixed gross profit and the more you can sell the better your
margins will be. But with petrol being so expensive that can only mean
bad things for employees and owners of service stations."
Mziwakhe Hlangani, spokesperson for the National Union of Metalworkers
of South Africa (Numsa) which represents the country's pump attendants,
expressed concern for their jobs in the future.
He said "smaller petrol stations are collapsing under the pressures
caused by high fuel prices", and that the union was in discussions with
the government in a bid to lift profit margins of retailers, and to
protect the jobs of the country's thousands of pump attendants.
PetrolWorld 280608 Local Media
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