Sasol is not selling its downstream fuel retail business as part of its ongoing asset disposal process, the petrochemical group said on Wednesday following reports that it was looking to offload its petrol stations.
On Tuesday it was reported that the state-owned Central Energy Fund was considering taking over Sasol garages. The fund later described the report was "malicious".
“While Sasol is in the process of reviewing opportunities in this regard, it is important to note that we remain committed to our strategy, which includes growing our fuel retail presence in South Africa,” said Sasol Chief Financial Officer, Paul Victor. Sasol’s energy business in South Africa has a strong brand of 410 retail convenience centres, which account for 11% of the regulated retail market.
“Although we are regularly approached by interested parties to acquire or partner with us in the retail network space, we are not in discussions with any such parties to divest or partner in our downstream fuel retail business. While recent events have created significant short-term challenges, we are confident our business is fundamentally robust and we have a clear pathway to resume value creation,” said Victor.
On 12 March 2020, Sasol announced that it was reviewing a variety of actions to address the challenges created by the impact of COVID-19 and the recent decline in the oil and chemical prices.