Why petrol stations have fuel shortages when price hikes loom

Wednesday's R1,62 petrol price hike also saw speculation emerge that petrol stations are withholding fuel stocks in order to benefit from the price increases. However, Fuel Retailers Association's Chief Executive Officer Reggie Sibiya says that this practice would make no sense for station owners.

According to Sibiya petrol stations still make the same net margin, regardless of what price they sell their stock at. He says there is no retailer that would take that kind of risk to lose.

Image courtesy of Eyewitness News.

Fuel delivery times

Sibiya says that it is always a problem for retailers to sustain fuel supply on the eve of a petrol price increase. He explains that while trucks are on the road to deliver, often on the eve of a price hike demand spikes and the petrol is depleted before the delivery arrives to supplement the demand.

Price increase is tricky because the fuel deliveries happen in the early hours of the morning or late at night for the retail sector. During the day, most of the deliveries are targeted to the commercial sector.

Cape Town's unstable supply

Sibiya told CapeTalk's Kieno Kammies that Cape Town has had a very unstable supply for the past two months. This has been caused by fuel company Chevron’s planned upgrades that were not well-managed with supply back- ups. He says there has also been a problem with the wings of the of the shipments making it difficult to offload stock.

Even before the price change, Cape Town has been on the radar dealing with the department and the oil companies to try and manage the situation.

Image courtesy of DirectAxis. Find the full info-graphic here.

Listen to the full conversation on Breakfast with Kieno Kammies:

Read More
2008: Regan Thaw recalls the xenophobic attacks in Dunoon

2008: Regan Thaw recalls the xenophobic attacks in Dunoon

As we celebrate 20 years of CapeTalk, EWN Desk Editor Regan Thaw recounts his experience of the 2008 xenophobic attacks.

Intellectually challenged Donna Chait defies the odds

Intellectually challenged Donna Chait defies the odds

A soon to be released SA documentary tells the story of this intellectually challenged woman who ran the New York Marathon.

Sassa says cards will be fully functional post expiry date

Sassa says cards will be fully functional post expiry date

Sassa spokesperson has reassured all social grant beneficiaries that all cards will still work beyond December 2017.

LISTEN: WC police responds to security concerns on Kloof and Long Streets

LISTEN: WC police responds to security concerns on Kloof and Long Streets

This follows the death of a man who was trying to defend two women from being mugged on Kloof Street over the weekend.

Grade 9 learner at Leiden High stabbed to death in gang related rivalry

Grade 9 learner at Leiden High stabbed to death in gang related rivalry

According to MEC Debbie Schäfer this is part on going gang activities in the area which are spilling into school grounds.

SA drought may take its toll on food security - agricultural expert

SA drought may take its toll on food security - agricultural expert

16 October is World Food Day and CapeTalk's Kieno Kammies speaks to Dr Klaus Eckstein about some of the challenges SA faces.

Popular articles
Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

The Money Show’s Bruce Whitfield interviews Adams about his attitude to money (hopes and fears, successes and failures, etc.).

Eusebius Opinion: "Let go Kevin Pietersen, you do not own the school"

Eusebius Opinion: "Let go Kevin Pietersen, you do not own the school"

McKaiser responds to former SA, now England cricketer Pietersen's comments over Maritzburg College pupils holding EFF t-shirts.

Twitter is gobsmacked as Nigeria honours Jacob Zuma with bronze statue and road

Twitter is gobsmacked as Nigeria honours Jacob Zuma with bronze statue and road

During Zuma's visit to Nigeria, the Governor of the Imo State in Nigeria, Mr Owelle Okorocha, conferred an Imo Merit Award on him.

Minister Lynne Brown's partner scored R1.2 million contracts with Eskom

Minister Lynne Brown's partner scored R1.2 million contracts with Eskom

Sikonathi Mantshantsha says this revelation explains why Brown was reluctant to take any action against Eskom executives.

KZN school ordered to stop action against students with EFF shirts

KZN school ordered to stop action against students with EFF shirts

A letter has been addressed to the Maritzburg College principal after an image of the boys went viral last week.

Kloof Street residents living in fear as crime multiplies

Kloof Street residents living in fear as crime multiplies

A Cape Town man was stabbed to death on Saturday while trying to assist two women who were being mugged on Kloof street.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.