New ways to pay for petrol

Cape Town - South African consumers can now use almost any form of payment to buy petrol at BP filling stations - whether credit, debit, garage or even gift cards.

This step renders BP more consumer-friendly than its competitors, especially with regard to foreign visitors during the World Cup soccer tournament who will possibly only use credit cards for payment.

Credit cards have previously been unacceptable for fuel purchases in South Africa because of the handling fee that sellers have had to absorb.

This fee, which retailers have to pay, is a percentage of the transaction value, despite the profit margin on fuel being fixed.

However, BP will now contribute 50% or more of the dealer's service fee for fuel retailers.

Joe Mahlo, BP's local head of marketing programmes, says the coming tournament prompted the company's decision.

For the first time South African motorists can pay for fuel with a garage, fleet, debit, credit and gift card or cheque.

BP wanted to make the payment system more user-friendly for both South Africans and foreigners.

According to Reggie Sibiya, chief executive of the Fuel Retailers Association, BP has to date been the only petroleum group to support fuel retailers by subsidising the costs attached to debit-card transactions.

The same support is now being extended for credit and hybrid card transactions (such as cheque and gift cards).

Even where the regulation of card usage at filling stations is relaxed, this places severe financial pressure on fuel retailers, he says.

More card payments would mean that BP filling stations need to hold less cash, significantly deterring filling-station robbers.

- Sake24.com

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