Filling up on your credit card

By Staff Writer

The Department of Minerals and Energy has published draft regulations for comment on changing the law to allow petrol purchases with credit cards. If you wanna respond then you gotta write it down and send it in before the 30th of May 2009. Previously it has been illegal to pay for petrol with a regular credit card. This is due to petrol prices being set by government and the cost of using a card is carried by retailers and credit card holders get benefits from their cards. This amounts to a discount for consumers or a burden for retailers which would skew the pricing as established by Government. Now the Government want to open it up for the World Cup 2010. So if they do what should you do?

 

 

The draft regulation contains this clause: 'The costs to a retailer arising from the acceptance of payment in the form of debit, credit and hybrid cards must not exceed the costs of cash as a form of payment determined by the Department of Minerals and Energy on an annual basis'. The difficulty here is that the cost of paying via a credit card will have to be picked up by someone. If the petrol stations are not supposed to pay over the cost of cash will the banks meet this and allow free transactions on petrol purchases? This seems highly unlikely.

Further the Petro card setup we have at the moment charges interest on all purchases from time of purchase rather than allowing an interest free period like most regular credit cards have. Would this continue or would the banks extend the interest free period to fuel purchases and could this then be used to offset the transaction cost that the proposed law stipulates is to not be more than the cash cost? The commentary period is almost over so if you want to have your say write it down and send it to the Department. This law could change how you budget for petrol and have long reaching effects so get involved.

 

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)