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With the address of SIBONISO MNGADI 
12h ago
According to the Automobile Association, mid-month data points to a decrease in the price of gasoline from R1.89 per liter, while diesel seemed to drop around R1.17 and illuminate paraffin at R1.88.
However, while this is good news for motorists, several service stations across the country were struggling financially due to fewer motorists on the road, which is a result of the blockade.
Some service station owners have chosen to operate limited hours compared to normal 24 hours, while others have reduced staff to minimize costs. This was according to the study by the National Association of South African Employers (Naesa), which represents business owners in the industry.
The survey painted a bleak picture later, and the association has made an urgent appeal to major oil companies to help fuel retailers in practical ways to survive the current adverse business situation.
The association said the biggest threat to the survival of fuel retailers was the drastic decline in turnover caused by the blockade state.
The study revealed that 60% of service station owners cited the decline as the biggest problem they faced.
Gerhard Papenfus, CEO of Naesa, said several fuel retailers indicated they would experience difficulty paying rent during the shutdown period. Despite the fact that the majority presented skeleton personnel or a short time, they indicated that they were not in a position to finance the remuneration.
“As an essential service, service stations must remain open, normally 24 hours a day, 7 days a week, which generates sustained costs, with practically no income. Lack of cash flow was cited by some of our members as a major impediment, as the survival of the industry largely depends on cash flow.
“During this blockade, there is obviously nothing that can be done to increase turnover since motorists are locked up, and only essential and emergency service vehicles are currently able to travel.
“Also, as a result of the more expensive fuel in their tanks when the price of fuel dropped, fuel retailers are experiencing severe losses.
“When we analyze the situation, it is clear that relief for fuel retailers is primarily in the hands of the major oil companies. In this scenario, fuel retailers have very limited bargaining power, if at all. “
Layton Beard, spokesman for the Automobile Association, said fuel prices are expected to drop further in the coming months.
“Although demand is currently low in our country, the drop in prices could be attributed to the decrease in the oil rate. At this point, we cannot say how long the decline will last, ”he said.
Sunday Tribune
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