How do fuel prices, specifically paraffin work?





Results 1 to 17 of 17
  1. #1
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default How do fuel prices, specifically paraffin work?

    Can the guys in the business please advise:

    I use a few 1000 litre illuminating paraffin per year for a boiler. I have a supplier who gives me very good service, but I want to discuss pricing with him.
    I understand that the wholesale price is regulated and changes monthly. The price varies depending on where you are located. I presume this is based on how far from a refinery you are, i.e. how much it costs to get fuel to the wholesalers. I see that it will go up by 39c on Wednesday again.

    Minister Gwede also issued regulations at the end of June fixing the maximum retail price for July at R8,82/litre, but nothing yet for August. The retail regulations does not prescribe packaging costs and I understand that in a shop you will pay around R25 for 750 ml.

    My supplier charges R11,50, i.e. R2.68 per litre more than the maximum. To me this seems excessive for delivery and pumping it directly from his truck to my tank. I understand in other areas suppliers ask a fixed delivery fee or R250.

    Should I negotiate with him and risk cheesing off the only retailer that supplies the volumes that I generally purchase?
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

  2. #2
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    38,827
    Thanked: 15116

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by JanB View Post
    Should I negotiate with him and risk cheesing off the only retailer that supplies the volumes that I generally purchase?
    He has a clear monopoly, and he knows it. I suppose it depends on how you approach the discussion.

    "Hey bra, jy druk my dood, wat is jou storie?" might not get appreciated.
    Jakes Louw
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  3. The Following User Says Thank You to jelo For This Useful Post:


  4. #3
    Join Date
    Jul 2014
    Location
    Pretoria
    Age
    45
    Posts
    1,337
    Thanked: 1089

    Default Re: How do fuel prices, specifically paraffin work?

    Went to builders (spoeg) the last week and they sell parrafin, in 5L plastic containers for. . . . R198

    Got some at a local hardeware place at around R16 a liter.


    R11.50 seem cheap to me
    Ford Ranger 3.0Tdci Super Cab 4x4 (workshop whore)


  5. #4
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default Re: How do fuel prices, specifically paraffin work?

    Yes, but I buy 800 - 1000 litre at a time.
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

  6. #5
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    38,827
    Thanked: 15116

    Default Re: How do fuel prices, specifically paraffin work?

    I'd phone around again.
    Jakes Louw
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  7. #6
    Join Date
    Jan 2013
    Location
    Friemersheim, Southern Cape
    Age
    58
    Posts
    4,413
    Thanked: 3407

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by jelo View Post
    I'd phone around again.
    Not many choices around here.
    Robert van den Berg

    1998 Daihatsu Rocky 'The Kitty'
    2002 Daihatsu Rocky 'The Bully'

    "Socialism only works in two places: Heaven where they don't need it and hell where they already have it." -Ronald Reagan.

  8. The Following User Says Thank You to Prof For This Useful Post:


  9. #7
    Join Date
    Sep 2009
    Location
    Bloemfontein
    Age
    44
    Posts
    6,362
    Thanked: 601

    Default Re: How do fuel prices, specifically paraffin work?

    the new price for august will be R9.34 maximum retail.
    Cost in GP as from wednesday is R7.42 per litre at depo.
    Meaning your guy if he collects at the depo himself collects currently for around R6.90 and sells for R11.50..What a ripoff
    He is clearly adding a huge transport cost to his figure.Buy yourself a 1000lt container and fetch yourself.see if that drops the price

    I see you in George..from wednesday cost is R6.61..so around R6.10 currently according to my recent document
    Last edited by Mr.G; 2020/08/03 at 05:15 PM.

  10. The Following User Says Thank You to Mr.G For This Useful Post:


  11. #8
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    38,827
    Thanked: 15116

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by Prof View Post
    Not many choices around here.
    I doubt it, lots of farmers get diesel and paraffin wholesale
    Jakes Louw
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  12. #9
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default Re: How do fuel prices, specifically paraffin work?

    Wholesalers here have minimum order of 1500 litre
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

  13. #10
    Join Date
    Jan 2013
    Location
    Friemersheim, Southern Cape
    Age
    58
    Posts
    4,413
    Thanked: 3407

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by JanB View Post
    Wholesalers here have minimum order of 1500 litre
    Supply from Atlantic Oil?
    Robert van den Berg

    1998 Daihatsu Rocky 'The Kitty'
    2002 Daihatsu Rocky 'The Bully'

    "Socialism only works in two places: Heaven where they don't need it and hell where they already have it." -Ronald Reagan.

  14. #11
    Join Date
    Jul 2008
    Location
    Constantia Kloof
    Age
    38
    Posts
    2,121
    Thanked: 1162

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by JanB View Post
    Wholesalers here have minimum order of 1500 litre
    Get a bigger storage tank? Seems to me you will save a lot of money that way.
    Brandt Theunissen
    2019 Mahindra S6 Pik Up S/C 4x4
    2007 Mercedes Benz ML500 5.5
    1968 VW Beetle 2276

  15. #12
    Join Date
    Dec 2014
    Location
    Cape Town
    Age
    54
    Posts
    3,122
    Thanked: 1980

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by JanB View Post
    Yes, but I buy 800 - 1000 litre at a time.
    Quote Originally Posted by Mr.G View Post
    I see you in George..from wednesday cost is R6.61..so around R6.10 currently according to my recent document
    Quote Originally Posted by JanB View Post
    Wholesalers here have minimum order of 1500 litre
    Depending on your storage capacity, filling a 1500l tank at R6.61 is still going to be cheaper than 1000l at his prices, maybe you can find someone who will take a part of your purchase off you?
    Cheers,
    John Kilfoil

    Rover P6
    Land Rover Discovery II Td5 Manual
    Range Rover P38 HSE
    Moto Guzzi LeMans
    Aprilia Tuono V2

  16. The Following User Says Thank You to JohnnoK For This Useful Post:


  17. #13
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by Prof View Post
    Supply from Atlantic Oil?
    I spoke to Southern Cape Petroleum
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

  18. #14
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by Koebelwagen View Post
    Get a bigger storage tank? Seems to me you will save a lot of money that way.
    It might be an option. I will have to fit it in the same footprint as I don't have more space available.
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

  19. #15
    Join Date
    Aug 2013
    Location
    Somerset West
    Age
    34
    Posts
    525
    Thanked: 225

    Default Re: How do fuel prices, specifically paraffin work?

    Quote Originally Posted by Mr.G View Post

    He is clearly adding a huge transport cost to his figure.Buy yourself a 1000lt container and fetch yourself.see if that drops the price

    I t
    Paraffin is a dangerous good and can't just be transported in that quantity by anyone. So unless he is licensed to transport dangerous goods that idea won't work.


    I reckon a bigger tank on site is the answer. The cost of the bigger tank could be worked back quickly if you can get a reduced unit price.

  20. The Following User Says Thank You to PhlippieV For This Useful Post:


  21. #16
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    38,827
    Thanked: 15116

    Default Re: How do fuel prices, specifically paraffin work?

    Surely SOMEBODY else in George will take the extra 500L at that price?
    Jakes Louw
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  22. #17
    Join Date
    Aug 2012
    Location
    George
    Age
    45
    Posts
    2,254
    Thanked: 554

    Default Re: How do fuel prices, specifically paraffin work?

    O yes, that should not be a problem. I will just have to confirm with the wholesaler will consider delivering at two sites as a single delivery.
    Tyrannosaurus R5 and a second hand British Tata
    Quote Originally Posted by 2beFree View Post
    Jan your signature says it all

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •