East London shops break law on gas price

Some outlets claimed they did not know of the pricing regulation, with some promising to bring their prices in line with the stipulated rate.

The Department of Energy (DoE) announced that from 14 July 2010, gas will be sold at R15.69/kg in coastal areas.

However, Dispatch Civic has discovered that on Monday shops were still selling gas for as high a price as R22/kg.

Unaware

The Nahoon Spar charged customers R199 to fill up a 9kg cylinder.

Shop manager Jacques Kleyn, however, admitted receiving an e-mail from supplier E Gas Distributors last week, advising the shop to change the price to R18/kg, over R2/kg higher than the regulated price.

He said he was not aware that the DoE had capped the price at R15.69/kg.

The Lighthouse Spar at the East London beachfront was charging consumers R18/kg, but said they would drop the price.

Manager Nigel Connellan blamed E Gas Distributors for the shop charging the wrong price.

"We've been selling at this price since Thursday last week. E Gas (Distributors) gives us the guideline price, which they get from Total SA, and we go by them," said Connellan.

Confusion

Marius Engelbrecht from E Gas Distributors said he had priced gas according to a rate in a television advert he saw last Thursday.

"There is a lot of confusion and misunderstanding here.

"On TV they said it's going to be R18/kg and now it has been adjusted again. The new prices have been in the pipeline for some time now ... but we didn't expect them now, especially in the middle of the month."

Robert Maake, director of hydrocarbons operations at the DoE, said "unscrupulous retailers" could face stiff fines if they did not adhere to the new pricing, which was advertised on radio and TV from 9 July.

Losing business

Tony Ah Tow, from Valpa Gas in Vincent, said the new price was a headache for most distributors, who were now losing business.

"The consumers are happy but we, as suppliers, are being ripped off. They must re-look (at the pricing regulation) because if gas shops close in Mdantsane, then people will be forced to pay taxi fares to come to town just to fill up.

"I know of six shops that have either closed or (are) thinking of doing so," said Ah Tow.

Afrox, off Buffalo Street, were selling gas at around R19/kg, and the owner, who refused to give her name, said she was not aware of the new regulation.

Source: Daily Dispatch