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
'Safety issues go beyond Prasa's mandate'

'Safety issues go beyond Prasa's mandate'

Prasa acting CEO has responded to issues of safety, saying they are now engaging with Transport Ministry.

What happens to drugs seized by cops?

What happens to drugs seized by cops?

City of Cape Town law enforcement director Robbie Roberts explains what happens to confiscated drugs.

Snakes on a plein: Drought to push snakes closer to properties

Snakes on a plein: Drought to push snakes closer to properties

Snake catcher Shaun McCleod says about 99% of snakes in the WC are just looking for food.

Jimmy Manyi will learn banks aren't stupid - Mantshantsha

Jimmy Manyi will learn banks aren't stupid - Mantshantsha

'Financial Mail' Deputy Editor Sikonathi Mantshantsha says banks may also turn their backs on ANN7 and TNA's new owner.

Californians up in arms claiming Snapchat is snapping up arty Venice Beach

Californians up in arms claiming Snapchat is snapping up arty Venice Beach

The locals in the US beach suburb are not happy with the company's corporate strategy, turning entertainment areas into offices.

44 drivers arrested for drunk driving in WC traffic blitz

44 drivers arrested for drunk driving in WC traffic blitz

Western Cape provincial traffic chief, Kenny Africa gives traffic updates of what he described as a very hectic weekend in the WC.

Popular articles
An expert guide on 'hotwifing' and 'cuckolding' in the bedroom

An expert guide on 'hotwifing' and 'cuckolding' in the bedroom

Clinical sexologist Dr Eve shares insights into sexual fetishes and how partners negotiate them in their bedroom and relationship.

[Watch] John Maytham shuts down victim shamer on air

[Watch] John Maytham shuts down victim shamer on air

A caller wanted to know what the alleged victim had done in order for Grace Mugabe to assault her.

Cape officials to harvest 500 million litres of new water a day

Cape officials to harvest 500 million litres of new water a day

Mayor of Cape Town speaks to CapeTalk's Kieno Kammies about plans to provide more water amidst the ongoing drought.

LISTEN:  Reformed car hijacker sheds light on hijacking underworld

LISTEN: Reformed car hijacker sheds light on hijacking underworld

This reformed car hijacker was convicted for hijacking, robbery and murder and served almost 16 years jail time. Hear his story.

Journos walk out of Bathabile Dlamini's briefing after 2 hour wait

Journos walk out of Bathabile Dlamini's briefing after 2 hour wait

EWN's Gia Nicolaides says journalists walked out of the media briefing on social grants after waiting for hours for her to arrive.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.