The Minister of Energy, Ms Dipuo Peters, today, Friday, 10 July, published under section two of the Petroleum Products Act, 1977 (Act No.120 of 1977), regulations regarding the use of payment cards to purchase petroleum products at a every retail site in South Africa.
Payment cards have historically not been allowed in South Africa because of huge costs associated with some of these cards. The emergence of the debit card system has made it easy and cost effective to use these cards. Removing cash from retailing operations is the primary objective for this move. It should result in improving safety conditions at retail outlets across the country.
Minister Peters said: "These regulations prescribe the method of payment for the purchase of petroleum products at a retail site right across our country. The retailers are expected to do the following: accept payment in the form of cash; accept payment in the form of a payment card. {"payment card" means a card issued with the purpose of effecting payment for goods or services and includes debit card, credit card, cheque card, fleet card, garage card or petrol card, whether issued under a three party or four party scheme or specifically for the purpose of enabling payment for purchase of petrol or diesel}; prominently display a notice on the type of payment card that is acceptable to the specific retailer."
Minister Peters added that, "If no type of payment card is acceptable to the retailer then a notice to that effect must be prominently displayed."
Despite the acceptance of payment in the form of a payment card contemplated in these regulations, the Department of Energy will, for the purposes of determining the retail margin, treat all transactions as cash sales. Accordingly, we shall, as from today, publish the cost of cash and the elements thereof in our website (http://www.dme.gov.za).
These Regulations, however, do not apply to the state, local authorities, statutory bodies and other organisations specifically exempted by the Minister of Energy.
Finally, Minister Peters urged motorists to be aware that not all garages will immediately accept payment cards. This is a direct consequence of the logistical arrangements which are fundamentally changing the way in which retailers have operated in this country for many years and comes into being a few months before we host the 2010 FIFA World Cup.
These regulations come into effect immediately.
Enquiries:
Bheki Khumalo
Cell: 082 773 2388
Zodwa Batyashe
Cell: 083 255 8849
Issued by: Department of Energy
9 July 2009
