The cries of more than 2,500 fuel retailers have been heard, with the Gauteng High Court in Pretoria ordering the immediate reversal of the site and operating licences of a new petroleum business rival.
Following a hearing, the court found that the site and operating licenses awarded to Sulnisa Garages (Pty) Ltd, with its principal and registered address in Cape Town, and Mayfield Property Investments (Pty) Ltd, were issued unlawfully.
The matter stemmed from an urgent application filed by the Fuel Retailers’ Association and Mosaval Fuels (Pty) Ltd, who sought to challenge the granting of licenses to Sulnisa Garages and Mayfield. They claimed that the decision bypassed due legal process amid pending appeals.
The Fuel Retailers’ Association represents over 2,500 members across South Africa, while Mosaval Fuels is a registered retailer based in Cape Town. The respondents included the Minister of Mineral Resources and Energy, the Controller of Petroleum Products, and the Director-General of the Department of Mineral Resources and Energy, along with the two companies at the centre of the controversy, Sulnisa and Mayfield.
The matter dates back to the issuance of retail licenses on June 10, 2024, after which the Fuel Retailers' Association and Mosaval appealed on May 22, 2024. Both the association and Mosaval Fuels raised red flags with the Controller regarding the legality of the licenses being issued despite ongoing appeals. Ultimately, despite multiple warnings and objections lodged, the Controller proceeded to issue the licenses to Sulnisa and Mayfield, prompting the urgent legal challenge meant "to safeguard existing retailers and the integrity of the regulatory framework governing fuel retailing".
Sulnisa and Mayfield started with the construction of the site in March 2024. On 9 May 2024 the licenses were granted. On 20 May 2024 the applicants wrote to the Controller informing them that they would be appealing the decision to grant the applicants’ licenses, and that in terms of the judgment of Gensinger and Neave CC and Others v Minister of Mineral Resources and Energy and Another 2024, the appeal suspends the issuing of the licenses until the appeal has been finalised.
On 21 May 2024 the appeal was lodged against the granting of the license. On 10 June 2024 the Controller issued the licenses to Sulnisa and Mayfield. The respondents responded to the appeal on 8 November 2024. The legal services of the Department of Mineral Resources and Energy on 18 October 2024 informed Sulnisa and Mayfield that they may not continue to develop the site or retail petroleum products pending the finalization of the appeals. Furthermore, it was set out that in close proximity to the site of Sulnisa and Mayfield are Total Energies Observatory, Caltex Observatory, and Shell Salt River Circle.
The court determined that the urgency of the matter stemmed from the potential for immediate harm caused by Sulnisa and Mayfield commencing operations with the issued licenses.
In delivering the ruling, Judge S Potterill stated, "The unlawful issuing of a license by the Controller must be interdicted pending the review," and "…I am satisfied that the applicants have proven that they have a clear right, will suffer irreparable harm, and have no alternative remedy."
