As South African investors continue to seek passive ways to generate income, fraudulent businesses penetrated the market to exploit investors’ blind optimism about making money online.
One company that offers opportunities to earn passive income online is Petron-Pay. According to the company, members profit from the crude oil markets by investing in Petron-Pay, a non-oil producer or refinery company.
Read on to learn everything you need to know about Petron-pay, whether it’s a legit and profitable oil investment or another scam trying to take advantage of South African investors’ vulnerability.
Is Petron-Pay a Crude Oil Investment Company?
At first glance, Petron-Pay seems to provide its members attractive and profitable investment opportunities. It claimed to profit from crude oil investments, which will be shared among the members.
By marketing black gold (crude oil), the company undoubtedly attracted online traders and investors because of the volatile and profitable crude oil market.
Here are the seven (7) types of Barrel Packs – investment packages offered by Petron-Pay.
| Barrel Pack | Pack Price | Admin Fee | Binary Points |
|---|---|---|---|
| Barrel $25 | 25 USD | 5 USD | 5 |
| Barrel $50 | 50 USD | 5 USD | 10 |
| Barrel $99 | 99 USD | 10 USD | 20 |
| Barrel $249 | 249 USD | 15 USD | 50 |
| Barrel $499 | 499 USD | 15 USD | 100 |
| Barrel $999 | 999 USD | 30 USD | 200 |
| Barrel $1999 | 1999 USD | 30 USD | 400 |
The company guarantees a daily return on investment (ROI) of 0.2% to 2.5%, which is capped at 300% of the investment. That’s a solid and astonishing ROI!
However, behind that 300% return on investment it offers, investors worry that it could be another Ponzi scheme disguised as oil barrels.
Don’t you know if your investment is safe? Ask the community for insights and shared experiences to help you ensure you’re investing in a reputable company.
How Do You Make Money with Petron-Pay?
As per the website, the company invests in crude oil to generate profits, which will be shared among its members.
However, it also advertises other five (5) means for the members to profit:
- Recommendation. The company has a referral bonus structure for members who successfully recruit new investors. Petron-Pay gives a 50% bonus based on the first purchase of the direct downline. For indirect downline recruiters, the company gives a 10% referral bonus.
- Binary Earnings. Investors build two sub-teams and earn 50% of the points generated by the smaller team.
- Three Stars Bonus. When a member recruits three direct downlines, they will get a 10% bonus of the total purchased three recruited members.
- Renewal Bonus. Members earn half of the 50% binary bonus whenever one of their team members renews their membership.
- Awards Program. Higher-ranking members can earn points, cash, and trips abroad through the awards program.
Is Petron-Pay Legit?
By scrutinizing the reasons above, you can conclude that Petron-Pay offers a Ponzi scheme in the guise of crude oil investments. The stated ways to make money heavily rely on recruiting new members – making it a multi-level marketing (MLM) company rather than a crude oil investment company.
The company claims to profit from investing in crude oil, but its only source of income is the new investments made by recruited members.
What is the Ponzi Scheme?
Named after the 1920s con artist Charles Ponzi, this scheme is an investment fraud that promises high returns and little to no risks to investors.
Since people are naturally drawn to low-risk, high-reward opportunities, Ponzi schemes continue to be prevalent today. However, instead of generating actual profits through legitimate investments, money from new investors is used to pay returns to earlier investors.
This creates the illusion of success.
In the case of Petron-Pay, members’ investments from the barrel packs are not invested in the crude oil market. Rather, it’s used to pay big profits to the earlier investors, which will then attract new members into the scheme.
However, the moment the money flow from new members dries up, the scam artist will have no means to pay the earlier investors to continue the scheme cycle. This would collapse the Ponzi scheme.
Untraceable CEO
The company has John Grant as its CEO. However, no verifiable information exists about this person across the internet.
Speculation even suggests using deepfake technology to generate promotional videos on YouTube.
Remember, the absence of credible leadership is a significant red flag for any MLM company.
When a company cannot provide credible information about its management, suspicions of fraud or mismanagement arise. Why?
Because there’s no one to hold accountable if things go wrong.
In MLMs, where income often depends on recruitment, the lack of clear, trustworthy leadership increases the risk of the operation being a scam, like a Ponzi scheme.
U.S. Sec Warned the Public About Petron-Pay
The U.S. Securities and Exchange Commission (SEC) has issued a public alert about Petron-Pay.
The SEC’s PAUSE (Public Alert: Unregistered Soliciting Entities) program lists Petron-Pay as an entity that falsely claims to be registered or licensed in the United States to solicit investors.
According to the SEC, Petron-Pay is not a registered investment firm, which means it does not meet the regulatory requirements to legally offer investment opportunities in the U.S.
By operating without proper licensing, Petron-Pay evades the oversight and scrutiny that legitimate investment firms are subject to.
This increases the risk for investors, as no regulatory body ensures that the company follows proper financial practices or protects investors’ interests.
Is Petron-Pay Affiliated to PetronCorp?
No, Petron-Pay and PetronCorp are not affiliated.
Petron-Pay has been identified as a fraudulent entity involved in a Ponzi scheme and is currently listed on the SEC’s PAUSE list for unregistered soliciting entities.
PetronCorp is a legitimate company that manufactures specialty lubricants. This company has no connection to Petron-Pay’s illegal activities.
Alternatively, Invest in Oil Companies Stocks
Petron-pay is a Ponzi scheme disguised as crude oil investment. Avoid putting your money into the platform at all costs.
If you want to invest in crude oil, it’s safer to buy stock in an established oil company.
Unlike the risky promises of MLM schemes like Petron-Pay, these companies provide transparency, regulatory oversight, and tangible investments.
Here are the two leading oil companies that you can trade in South Africa:
Sasol Limited
Sasol Limited is a global chemicals and energy company based in South Africa. The company is known for its innovative technologies and processing for synthetic fuels and chemical production.
Sasol Ltd is listed on the Johannesburg Stock Exchange (JSE: SSL) and the New York Stock Exchange (NYSE: SLL). Sasol represents a robust investment opportunity for South African investors due to its diversified portfolio and commitment to transitioning towards a lower-carbon future.
| Market Cap | USD 4.09 B |
| 52-Week Range | USD 6.22 – USD 13.57 |
| Dividend Yield | 9.67% |
ENGEN Petroleum Limited
Engen Petroleum Limited is a leading South African oil company focused on the downstream refined petroleum products market. You can trade this stock on the Botswana Stock Exchange, listed as BSE: ENGEN.
With a history dating back to 1881, Engen has a vast network of service stations across Southern Africa and the Indian Ocean Islands. The company’s strong market presence and commitment to customer service make it a reliable investment option.
| Market Cap | BWP 2.15 B |
| 52-Week Range | BWP 13.05 – BWP 13.44 |
| Dividend Yield | 26.41% |
Final Thoughts
Petron-Pay presents itself as a lucrative oil investment platform, promising a staggering 300% return on investment.
However, upon closer inspection, it becomes clear that the company’s business model relies heavily on recruitment rather than legitimate crude oil investments. This marks the company as a Ponzi scheme in disguise.
