Guiding consumers since 2009

Get your petrol on credit

By Staff Writer

The Department of Minerals and Energy has given the go ahead for petrol stations to sell fuel via 'cash, debit, credit and hybrid cards'. Previously sales of petrol on credit were banned. The new regulation is designed to bring us into line with the rest of the world and to prepare for the World Cup in 2010. The prior regulations were to level the playing field whereby petrol prices are fixed by government and the extra cost of credit cards as well as reward schemes were seen as giving a 'benefit' which was outlawed under a fixed petrol price. 

 

 

Justmoney.co.za spoke to the Department of Minerals and Energy and we asked them if the cost of doing a credit transaction for petrol would be passed onto the consumer. They said that the costs would not be passed onto the consumer and that the petrol retailers would have to negotiate with the banks in order to reduce the transaction costs. The margins in retail petrol are slim and the department recognises that rural retailers who don't have volume power to negotiate won't be beholden to the new regulations. So if you are in the city you will be able to fill up on your credit card, but out in the country you may not be able to.

Another part of the regulations is that due to the fixed pricing regime retailers may not skew the market by offering a 'benefit' to consumers for filling up with petrol with them. If the consumer is to not be burdened by the extra costs of using a credit card then the retailers who don't have the economies of scale may not offer this facility. It is also unclear what the effect on rewards, discounts and airmiles will be for credit card use. The new regulations are clearly designed with 2010 in mind, but we shall have to see how the implementation goes as to who will win out, but the banks look to be the most likely to profit at this stage.

Recent Articles

Featured Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Best ways to save your money short-term

For many, it seems close to impossible to save when spending on holiday getaways, Christmas gifts, while also trying to ensure there’s money left to survive January. Justmoney takes a look at the best ways you can save during the short term.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide