October 2, 2003

By Margie Inggs, Renée Bonorchis, Zobuzwe Ngobese

Durban and Johannesburg - Sasol, the country's largest oil company, said yesterday that after merging its liquid fuel business with Exel, the two companies planned to have 150 Exel and 150 Sasol service stations operational by mid-2004.

The merged company, called Sasol Liquid Fuels Business, would not only buy sites but would build new stations around the country.

This was despite the 5 000 service station limit for the whole country imposed by the Petroleum Producers Amendment Act.

Exel holds 3.7 percent of the market share in petrol and 7 percent in diesel. The two companies predicted they would initially hold 5 percent of the petrol market and up to 10 percent of the diesel market. Sasol said the target was to achieve a 15 percent market share by 2010.

Pat Davies, an executive director of Sasol, said the Sasol branded stations would provide more than just fuel and its forecourts would be up-market, allowing for convenience shopping and communications such as e-mail.  

Telkom spokesperson Andrew Weldrick said it had an existing contract with Exel to provide public call boxes at its stations.

"Moves are afoot to see what additional facilities could be offered and a number of communications solutions, including e-mail, are being considered."

Russell Driesenstock, M-Web's Wi-Fi manager who looks after the installation of wireless technologies that add convenience for travelling business people, was excited about the possibilities and said the company would be contacting Sasol.

Johann van Rheede, the Sasol spokesperson, confirmed the company had not yet signed a contract with eThekwini Africa Holdings, but was excited about petrol retail opportunities that could arise from negotiations with the developer and the eThekwini municipality.

"The potential for future empowerment opportunities in the greater Durban area will be tremendous should any deals be struck," he said.