Trade and Industry Editor

THE South African Fuel Dealers' Association (Safda) has welcomed new laws governing the petroleum industry, suggesting that they could control the proliferation of service stations, making it easier for existing businesses to prosper.

Without the controls that will be imposed through the new Petroleum Products Amendment Act there would have been fears of even more petrol stations being opened in an uncontrolled manner, worsening the situation in an already overtraded market.

One potential disruptive factor could have been the arrival of Sasol on the scene as a major brand, which will happen from next year.

In co-operation with Exel, with which it plans to merge, it is hoping to grow to 300 service stations next year, as its existing agreement with the other fuel companies expires and it asserts its new right to have a serious presence in South African fuel retailing.

Safda's national chairman Gerrie Lewis says that he expects that the new act will ensure that the number of new filling stations being opened will be better controlled.

"At least the livelihood of existing dealers will not be eroded by new but unviable filling stations across the road or virtually next door. They will have to be some kilometres apart on national routes," he said.

"New sites will have to satisfy new stipulations, such as impact studies, and proving their viability.

"They will have a year to comply and build the stations."

Oct 10 2003 07:33:01:000AM  John Fraser Business Day 1st Edition