Service Stations Shortchanged

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By Desie Heita

Windhoek

The petroleum sector is operating on a greedy and bureaucratic system in which oil companies and state-owned institutions are gobbling up a lion’s share of the industry’s revenue, while throwing a pittance to those who generate the money.

Surviving on a meagre 43 cents per litre, which service station owners receive as dealer margin, has made the service station sector the lowest paying sector in the country. It is also the sector where employees work long hours, often without overtime, and at a greater chance of being exposed to health risks associated with fuel fumes.

Oil companies and a host of Government agencies pocket 95 percent of revenue generated from the sell of 1,7 billion litres of oil per year to motorists, leaving a mere 5 percent to service station owners to apportion to the paying of wages for employees and profit.

As a result, many service stations have set-up 24-hour convenience shops at their service stations to complement their income. Yet, they still pay a fortune to oil companies, between N$30?

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