Letters to the editor

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Past Issues

February 2005


AFS Group

Big events, big impacts 


DAVID FROMAN - CEO, AFS Group (eFuel)

In terms of macro-economic events that will shape and/or impact on the industry, the merger between Sasol and Engen - should the Competition authorities approve it - will change the industry significantly. Transporters should benefit as competition grows in the industry as a result of the merger.

As regards socio/political events that will shape and/or impact on the industry, the new environmental requirements being imposed on the fuel industry requires billions of Rands to be spent by the petroleum companies on refining facilities situated throughout South Africa. As the industry prompts government for assistance with funding for theses improvements, we may see increases in the fuel margins.

Environmental legislation relating to fuel usage, i.e. responsibility for soil contamination at truckers yards and unacceptable levels of pollution emission from trucks, could have significant ramifications for an industry that for so long has remained ignorant of the effects of fuel spillage and emissions.

For ourselves, we see the market acceptance of fuel management solutions as we enter 2005 with tenders out from five significant municipalities including Cape Town and Tshwane. These tenders all require:

  • automated refueling at retail forecourts using vehicle tags;

  • electronic tank monitoring of fuel storage tanks;

  • electronic pump control at in house commercial sites;

  • bureau and reporting services; and

  • responsible environmental management

 

David Froman
CEO, AFS Group (eFuel)