Petroleum Industry business

[Blurock]

To me, it seems this prcatice is clearly not appropriate
And, I know someone may say...why don't thewholesellers import product into SA?
Answer is simple, they can NOT. There is no storage in SA, where will they put product? And even if there was, the oil majors control the pipe line from durban, so even if you do import and get storage (by whatever miracle), they you can not bring product inland on pipeline still
And remember the storage is not accessable by truck, What can be done on this matter?

Maybe I do not understand your problem. Do you want to import fuel, but do not have a storage facility?
If you do manage to import, would you not end up buying from the same companies who are supplying the local market at present? Do you have the infrastructure to service the market or do you just want to make a fast buck like most importers do?

If you do manage to import the product and bypass the current suppliers, why would people want to buy from you and not from a reputable dealer?

[CLIVE-TRIANGLE]

I, from an audit angle, was involved in the petro industry for more than a decade. You must realise that fuel is a strategic industry and is dramatically regulated. Just the resale side is regulated by more than 15 Acts.

If there is one single paragraph that really puts matters in perspective, it is paragraph 4 of this delightful Notice:

Government Gazette Notice Number 787 Published in Government Gazette Extraordinary No. 4358, Dated 6th April 1950.
1. Any person engaged in the trade or occupation of selling petrol for resale shall, in conjunction with any petrol that he sells, provide, install and maintain in accordance with the custom of the trade, for the use of the person to whom such petrol is sold, pumps, tanks and other contrivances and accessories ordinarily supplied to resellers for use in distribution or resale of petrol, on the terms on which they are ordinarily so supplied.
2. No person who is engaged in the trade or occupation aforesaid shall, except when it is otherwise directed by me, be bound to supply petrol for resale to any other person, unless :
a) that other person maintains, at the premises where such petrol is to be resold, the facilities laid down in Paragraph (3) for repairs and other services
to motor vehicles, under the supervision of a qualified motor mechanic, in a building of brick or concrete with a concrete floor and a floor space including any floor required for office accommodation, of not less than 1000 square feet; and
b) a suitable approach to and exit from the pumps is provided with due regard to the traffic conditions in the vicinity and the safety and convenience of the
public, or if the pumps are to be installed inside a building, they must be accessible to the public.
3. The facilities specified in Paragraph 2 shall be available at all reasonable times during the day, and shall include the following equipment.
a) Oil and Grease Equipment mechanically or hand operated with hoist, ramp
or pit.
b) Air Compressor Unit or manually operated pump.
c) Adequate water supply.
d) Puncture repair equipment, including garage jack, tyre lever and wheel spanners.
e) Tyre pressure gauge.
f) The usual mechanic’s hand tools, if not supplied by mechanic himself.
g) Equipment for attention to engines, consisting of reface, a set of seat cutters, micrometer and piston ring compressor.
h) Battery and electrical equipment, consisting of battery charger, testing equipment, battery filler and battery lifter.
i) Soldering equipment.
j) Miscellaneous workshop equipment, including work bench, creeper, vice,universal wheel puller, oil seal remover, bench grinder, a set of stocks, and dies, reamer set, trestles or suitable blocks, voltmeter and ammeter.
k) Welding outfit.
l) Fire extinguisher.
It is desirable that the building be in accordance with the locality in which it is situated and that establishments keep an adequate range of spare parts.
4. A person engaged in the trade or occupation of selling petrol for resale shall not be bound to supply any person with further petrol for resale if that person sells petrol so supplied to him at any price other than the cost to him delivered at the place of resale plus the ruling current gross margin allowed by the custom of the trade.

Decades ago Pick n Pay tried to sell petrol at reduced prices, you may recall, and it was these few words (and others) that scuppered the plan.

[Blurock]

There are places in Africa where petrol is sold on the roadside from jerry cans. How much muck or even rust goes into the tank from that can?