In December 2003, South Africas Competition Commission approved the proposed merger of Sasol and Exel Petroleum (Exel), a black-owned company. As a result, Sasol gained control of Exels network of 189 service stations throughout South Africa. In February 2004, Sasol announced plans to merge with Engen, a subsidiary of Malaysias Petronas. Each company would own a 35 percent stake in the new company, while 25 percent would be divided between each members BEE partners. As of December 2005, the Competition Commission had not given its final decision on the merger, however, the Competition Commission implied that the merger was not in the best interest of the country.
On January 1, 2006 South Africa switched from using leaded fuels to unleaded fuels in motorized vehicles. Prior to the fuel switch, an estimated 60 percent of South African vehicles were leaded fuel users. The South African government, under the clean fuels policy, paid to have older vehicles adapted for unleaded fuel. In addition, diesel fuel used in South Africa after January 1, 2006 will have an ultra-low sulfur content, which will increase its cost by $0.11 per Gallon.