Diesel costs for your generator spiralling out of control?
Diesel costs for your generator spiralling out of control?
12 December 2022
By Shane Jegels [Executive Chairman]
Don’t get caught.
Diesel is expensive and when generators just automatically kick in, the costs can surprise you.
The bad news is that businesses have little choice but to buy diesel to keep things going. What options are there? In some cases, on the surface of it, for some businesses, closing doors during loadshedding would save more money than can be made during the applicable loadshedding period. There are however greater considerations. Closing doors, even though it may appear to save money not only destroys any revenue for the period in question but also potential future revenue as customers will continue to go elsewhere. It’s an awkward conundrum, but one which South African businesses are grappling with every day.
The bottom line is that we all have to accept that the reality of the situation is that loadshedding or more directly put, the government’s inability to provide electricity reliably, is here to stay for a while. Diesel for generators has traditionally been regarded to be a “sundry purchase”. If we are to accept the reality of the situation and improve efficiencies, however, the way diesel is purchased is to be relooked.
But what to look out for?
1. Quality – not all diesel is equal. It is well known that many unscrupulous suppliers wouldn’t blink before “spiking” diesel with paraffin. Don’t disregard this. Paraffin has a lower density than diesel and will harm your engine. Do some research on the supplying company and get comfort around this.
2. Service - Turnaround times and the ability to source centrally.
3. Price - How does the price offered compare with your local service station price? Our research indicates businesses are paying too much if they have to pay more than the local price – even when diesel is delivered to them via a Light Delivery Vehicle and Trailer combination.
4. Safety - Our research shows many light delivery vehicles are non-compliant and overweight, this exposes businesses and the public to significant risk.?
5. Legality - Service stations are not allowed to legally sell diesel off their premises, which is why service stations have individual site licenses. Do not become an accessory by buying product from service station operators who sell diesel off-site.
6. BEE – an escalating diesel bill will be a larger contributor to your overall spend as a business and hence contribute negatively towards your company’s BEE procurement score and level should your supplier not have suitable BEE credentials.
Times are changing and business practices need to as well.
There are companies that legitimately sell diesel. A decent search of the internet would likely highlight a few of them. Do some research and keep your businesses going and your costs down. Companies that excel in this area will have an advantage in future.
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About Gulfstream Energy
Founded in 2009, Gulfstream Energy currently supplies circa 2% of South Africa’s fuel requirements across a number of industry sectors.
Consistently delivering over 1 million litres of fuel each day out of 30 depots to every corner of South Africa.
Gulfstream is led and managed by a competent executive team with more than 100+ years of combined experience across the entire value chain.
For more information visit our website:?https://www.gulfstreamenergy.co.za/
For queries email: [email protected]