Dealer boost as Engen subsidises bank fees on credit card fuel purchases

Tuesday, 25 May 2010

On the eve of the historic 2010 Soccer World Cup, Engen Petroleum Ltd has further tempted its 1 200 service station dealers to offer the convenience and security of credit card refuelling.

"Currently at 1.75%, credit card transaction fees erodes a significant part of the dealer margin on fuel, leading to a loss on earnings from such purchases." says Engen retail marketing manager Pierr Roodt

Roodt says to remedy the situation, Engen has decided to share the burden of banks' transaction costs halfway with its dealers, over the World Cup period which will significantly improve dealer profitability on credit card fuel sales. After some internal deliberations, Engen, the country's leading fuel retailer, is now ready to incentivise its Dealers who are willing to accept Credit Cards by subsidising half of the nett impact to dealers on transaction fees.

Roodt says a successful run could lead to Engen increasing its retail fuel sales on credit. For now, the deal is valid for the months of June to September, after which the company will review the programme and its results.

"This initiative will ensure that Engen, in partnership with its dealers, is leading the way in providing a service to foreign tourists during the World Cup, while stimulating volumes for the dealers," Roodt says.

"We invite all Engen dealers to welcome the world to Africa, and to share in a great opportunity."

Roodt however cautions Customers, to please look out for signage indicating which Engen Service stations accept Credit Cards, as the Retailers are still entitled to refuse acceptance by law.

For more information please contact pierr.roodt@engenoil.com