The editor brings price gouging to your attention!
IT seems to happen every winter, at least that’s when I refill my gas bottles at the onset of a cold snap.
LPG prices vary from dealer to dealer and although regulated and presumably administered by the Department of Energy, nothing appears to be done about blatant overcharging.
The general public it seems is unaware that the price of LPG – liquefied petroleum gas – is regulated in the same way as petrol, diesel and illuminating paraffin.
We listen intently when a public announcement from the DoE is made every month regarding the price of petrol, diesel and illuminating paraffin but I can’t recall hearing any reference to LPG.
Two recent experiences illustrate the overcharging problem.
Last month when the price of LPG was 1706c/kg, I was charged R220 for a 9kg cylinder refill at a local Caltex garage in Melkbosstrand. The correct price should have been R153,54! That is an overcharge of R66,46 or 43.2%. I have reported them to the Competition Commission, their fuel principles and to the SAPIA (SA Petroleum Industry Association) who publish the regulated prices – www.sapia.org/overview/old-fuel-prices.
I confronted them and demanded a refund which after a lame excuse they immediately provided.
In a case last week at a retailer in Parklands, which I have always found to charge the correct price, they had added VAT to the 9kg refill price so instead of it being R170.14 I was charged R195.66.
VAT is included in the regulated price, so in other words, double VAT. I thought that this might be an oversight and that they had forgotten to change their till format which automatically adds VAT at 15%. But no, when I spoke to the business owner his response was that due to the Covid-19 lockdown – reduced demand and lower production of petrol by local refineries, meant that there was a shortage and LPG had to be imported and that wholesalers were entitled to surcharge the regulated price, which was passed on to consumers so that retailers could still make their profit margin!
He further said that the situation – no further imports and surcharge – should fall away as petrol production rose with the easing of lockdown.
He immediately however agreed to reimburse me the VAT that had been charged!
I don’t buy this explanation and neither should you – not any so called explanation.
A spokesperson at SAPIA confirmed that
- the price of LPG is regulated
- the published price (gazetted) includes VAT and
- only the DoE is empowered to change the price, otherwise it is illegal.
These recent events are part of my ‘hobby-horse’ – I experienced similar exploitation from BP and Sasol garages in my neighbourhood two years ago, reported it to the DoE and am still waiting for a response.
Eish.
