The petroleum industry in South Africa is a highly saturated market with 6 major brands in the Gauteng area.
The petrol price as of August 2019 is R 15.72 and out of 167 countries, South Africa is ranked 90th with regards to the fuel price. The big players in this industry are namely Shell, Sasol, BP, Engen, Caltex and Puma to name a few. So now the question is, what influences consumers choice of petrol station?
In this research task I have set out to answer that exact question.
I have sent out a 10-question survey and got more that 50 responses to analyse. In conjunction with the internet survey, I conducted a secondary research using the internet and newspapers.
Context and discussion
Sasol – “this isn’t just any fuel its glug-glug”
SASOL stands for South African Synthetic Oil Limited
(3) This happened in 2010 when they were given the go ahead to manufacture a new ethylene purification plant in Sasolburg.
Sasol is involved in a multitude of social development investments like the SA National Women’s Football Team, the SA Paralympic Team and some environmental investments as well, helping to conserve wild dogs, vultures and ground hornbills as well as birding related projects.
In South Africa, Sasol has had its’ ups and downs like how in 2009 they paid out R118 million in a settlement agreement.
Sasol limited is an energy company based in Sandton South Africa but was founded on the 26th of September in 1950 in Sasolburg South Africa building on techniques developed by German chemists in the early 1900s. These techniques were used by the Germans in WWll to provide its’ army with fuel to go to war. Today, Sasol develops synthetic fuels and different variants of liquid fuels, chemicals and electric power. Sasol employs 30 100 people in 33 different countries and it is the largest corporate taxpayer in South Africa.
Sasol Limited manufactures its’ fuels in Sasolburg using the country’s coal reserves to manufacture oil as South Africa has no large crude oil reserves of its’ own.
One of the company’s big recent milestones was for alleged price fixing where a competitor accused Sasol of abusing its’ dominance in the fertiliser market.
Sasol is currently running instore promotions on products sold in its convenience store, Sasol Delight including buying any 2 Nestle 85g Aero chocolate bars for R30.90 or 1 Cadbury lunchbar max and a monster 500ml energy drink for R26.90. With any of these combo promotions you can choose to enter their competition where you have a chance to win your share of 8 million rand in shopping vouchers and data deals with Takealot, Uber, Checkers and Mr Delivery.
(6) Engen is an African based fuel manufacturer that started as an oil company back in 1881 and has since been enriching the lives of the people who live on the continent. They have done this by identifying issues and coming up with innovative solutions to fuel Africa’s growth.
Today Engen has a footprint in 18 countries including islands in the Indian Ocean and export products to more than 30 countries. In 1897-1908 Engen sold oils for every use including pests, candles and axel grease under the name “The Vacuum Oil Company”. In 1910 Mobil was added to the company’s product range which eventually became one of the biggest brands in South Africa. In 1993 conversations began about changing the name from Mobil to Engen. It was a huge risk but also a great opportunity to create a new identity and it was the most successful re-branding of a company in South Africa.
Engen is running a fuel promotion under the name “Big Blue Bonanza “where if you fill up your vehicle with R400 or more you stand a chance to win one of their 2 R10 000 fuel vouchers. Weekly, Engen has a strategic alliance with Woolworths which takes the place in their convenience store. If you buy any 2 participating products (Coke full sugar, Powerade or Bonaqua drinks) in their store you can win a trip to Switzerland. Compared to Sasol’s instore promotions, Engen seems to do theirs on a bigger scale.
Engen has taken care of the environment with its’ own programs along with the industry government programs. A perfect example of this is Engen continuing to support the Rose Foundation. Engen also contributes to improving education in South Africa with their math and science schools. These classes evolved out of their Sunday schools and exposes grade 10 to 12 learners who show promise in their fields.in the last 5 years the pass rates have been more than 90%.
Cite this essay
The petroleum industry in South Africa. (2019, Dec 10). Retrieved from https://studymoose.com/the-petroleum-industry-in-south-africa-essay