According to Absa there are currently three different ways to open a petrol station in the country:
- Investing in the physical building, land and associated assets (prop-co).
- Purchase of the business operation only (op-co).
- Purchase of both (prop-co / op-co).
Full Answer
How many fuel stations are there in South Africa?
Why open an independent fuel station?
How much petrol does South Africa use?
Is petrol cheap in South Africa?
Does South Africa burn petrol?
Do you need approval for a new petrol station?
Is Engen a franchise in South Africa?
See 4 more
About this website
How much does it cost to start a filling station in South Africa?
A local petrol station business set up costs range in the region of R15 million and R100 million depending on the size and site. Further to this the operation payable to the oil company ranges between R2. 5 million and R15 million, depending on the cost to develop, projected volumes and profitability.
How much does it cost to start a filling station?
As we mentioned before, starting a gas station has a high financial entry barrier. You should expect to secure at least $300,000 to cover the following startup costs: Purchasing the location. Business insurance.
How do I start a petrol filling station in South Africa?
According to Absa there are currently three different ways to open a petrol station in the country: Investing in the physical building, land and associated assets (prop-co). Purchase of the business operation only (op-co). Purchase of both (prop-co / op-co).
How do I get a filling station in South Africa?
What you should do. Complete the form Application for site or retail licence, DMRE 39. Send the application form to the Department of Mineral Resources and Energy regional office. The Department will send you a letter stipulating that you must publish a notice of application in four newspapers.
How much profit does a filling station make?
Gas retailers receive a fraction of the price listed on the sign–their net profit per gallon is around $0.03-$0.07–after factoring in costs like labor, utilities, insurance, and credit card transaction fees. This puts the net profit margin of a gas station at less than two percent.
How do filling stations make money?
Station owners make most of their profits in their stores, on sales of food and drinks, as well as alcohol where sales are legal. “The idea is to have a very competitive gas price, and when they go in the store, you can make money off that transaction,” Lenard said.
How do I start my own petrol filling station?
To start a petrol pump, the applicant must show the ability to invest a minimum of Rs. 25 lakhs in case of regular petrol pumps and Rs. 12 lakhs in case of rural petrol pumps.
How much profit does a petrol station make per Litre in South Africa?
The current gross profit margin to the dealers on a litre of petrol is 26.5 cents, compared with 18.5 cents in 1996.
How much does it cost to start a gas refill business in South Africa?
around R250 000Generally, a startup investment of around R250 000 is required to start a gas refill business. This depends on the LPG marketer, the storage capacity of the business, your equipment agreement, your working stock, cylinder deposits, and your business plan.
Is it profitable to own a gas station?
Did you know: A successful gas station owner can make anywhere from $40,000 to $100,000 or more annually? Owners of gas stations that do more than sell gasoline earn more money because the profit margins of the other things they sell are high.
Is owning a petrol station profitable?
Ans- Yes, petrol pump business in India is a highly profitable sector. The commission per litre including the number of vehicles filled monthly could easily take your monthly profits up to 4 Lakh Rupees.
Do you need a license to sell fuel?
A person keeping over 30 litres and less than 275 litres must notify the authority in writing with the name of the occupier, address of the premises and confirmation that the petrol is stored in accordance with regulations – not licenced. A person keeping in excess of 275 litres will require a licence.
Is it profitable to own a gas station?
Did you know: A successful gas station owner can make anywhere from $40,000 to $100,000 or more annually? Owners of gas stations that do more than sell gasoline earn more money because the profit margins of the other things they sell are high.
How much money do gas station owners make?
You would be correct in assuming a gas station owner's salary will depend on many different variables. In general, though, you can expect your earnings to be anywhere from $35,000 to $150,000 per Million Litre Fuel Sales and convenience store sale from 18% to 25% for overall sales including cigarette and Lottery sales.
Is a gas station a good investment?
Gas stations are a great business to franchise because the demand for fuel in America is constant and not going anywhere. Our country literally runs on gas. People need to drive to work and trucks need to carry goods across country. Gas stations are a $250 billion a year industry.
Do gas stations make money on gas?
Retailers Make Very Little Selling Gas Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.
Estimated Cost to Build and Open a Gas Station in 2022 - ProfitableVenture
Do you want to start a gas station and you want to know the cost breakdown? If YES, here are 15 factors that determine the cost of building a gas station. It is important to point out that there are several factors that can determine the actual cost of launching this type of business.
Petrol station property for sale - November 2022 - Ananzi
Explore 363 listings for Petrol station property for sale at best prices. The cheapest offer starts at R 100. Check it out!
DOWNLOAD PETROL FILLING STATION BUSINESS PLAN SAMPLE
Looking for a petrol filling station business plan for your new or existing enterprise in Nigeria or anywhere globally? Download this footwear petrol filling station business plan, which you can download to present to NIRSAL, BOI, BOA, and other investors.
Privately Owned Filling Station For Sale - BizX
MANDATE REPORT. 1. History Background. Construction Activities. Please note that there is construction activity on the road running past the Filling Station for three months, this is having a effect on the Turnover and Litres for the duration as clients have to use a detour road, the seller however was prepared for this eventuality.
Investing
According to Absa there are currently three different ways to open a petrol station in the country:
Red tape
Absa noted that unlike most businesses there is also a natural amount of red-tape franchise owners would have to contend with before opening a station.
Franchise versus independent
Absa noted that there were both pros and cons in deciding whether to go it alone. Notably as part of a franchise you immediately adopt the brand’s reputation, the parent company provides tried-and-tested concepts, along with marketing and buying support and a degree of business guidance and mentorship.
Going semi-independent
Absa also noted that a third option was rapidly developing, which could allow you to both open your station and still benefit from having a recognised company attached.
What are the two categories of petrol stations in South Africa?
South Africa petrol stations fall into two categories, independent and franchise operations, both of which are funded in the same way. Independently owned garages still play a big roll in the South African economy.
Why are filling stations so strong?
Existing filling stations are in a particularly strong position because of the PPA which controls the energy authorities to ensure that the number of filling stations is appropriate to local sales volumes and does not exceed the optimal number for an area.
What is a franchise concept?
Franchise concept comprise of separate business units. Often, depending on the franchise company, the concept could comprise of separate business units such as the forecourt, a convenience store, a bakery, car wash or a quick-service restaurant. These can be added under certain conditions.
Who determines which business units are suitable for the particular site?
After extensive market research, the franchisor determines which business units are suitable for the particular site and grants a licence to a single franchisee to operate the entire outlet.
What to make sure when buying a business?
Make sure that all licenses, agreements, and permissions are in place . These should also be a pre-condition in the purchase offer. Find out where the competition is located, what services they offer.
Petrol Station Franchise For Sale
Petrol station franchise for sale, a lot of people are looking at petrol stations for sale in South Africa. The industry seems to always be making money during good times or bad. No special knowledge is really needed. You need to be competent at running a business efficiently on a basic level.
Petrol Station Franchise For Sale
There are certain thing you need to look out for when considering opening up a petrol station. The first and most important is location location location. You can’t emphasize this enough.
How many fuel stations are there in South Africa?
Still, given our dependence on petrol and diesel, the fuel retail industry is surprisingly resilient. There are close to 5,000 service stations in South Africa, and according to the Department of Energy, and these have an annual turnover of approximately R220 billion.
Why open an independent fuel station?
Opening an independent fuel station. The independent route allows for greater freedom, and potentially greater profit, without the restrictions of a parent company. In theory, if you know what you’re doing and have enough cash, you can establish a filling station with your own brand.
How much petrol does South Africa use?
South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year , according to the Department of Energy. Diesel isn't far behind.
Is petrol cheap in South Africa?
Be warned, it is not for everyone, and it isn't cheap. If petrol isn't your thing, see below for links to articles about opening up franchises in fast food, retail, and other sectors. South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year, according to the Department of Energy.
Does South Africa burn petrol?
South Africa burns a lot of petrol – and selling it may be for you.
Do you need approval for a new petrol station?
New sites for petrol stations require approval from government, and you’ll need to jump through several legislative hoops as stipulated in the rather daunting Petroleum Products Act regarding petroleum products site and retail licences .
Is Engen a franchise in South Africa?
Most major oil companies operate their customer-facing operations as franchises in South Africa. The likes of Engen, Shell, Caltex, BP, or Sasol are open to new franchise locations, but with licensing and locations hard to come by, your best option may be to purchase an existing franchise operation .
What is FNB information?
FNB’s information to assist potential business owners in the decision making process includes a handy checklist of the documents that FNB would require before an application for funding is submitted – click here to read further
What is a sefa?
Sefa is a development funder and not the same as a bank. Sefa published their general requirements, qualifying criteria and considerations for applicants –.
What is a merchant bank?
Mercantile Bank offers businesses a specialised range of secure and user-friendly Business and Commercial Banking products and services. We adopt a niche approach to business and commercial banking and pride ourselves on being able to tailor our solutions to suit our clients’ unique and evolving needs.
Is Masisizane Fund a non profit?
The Masisizane Fund is a non-profit funding entity. The fund is an Old Mutual initiative that was established in 2007. The fund offers development finance and business support.
What is Shell South Africa's commitment to transform its business?
Shell South Africa’s commitment to transform its business to reflect a retailer profile that represents the demographics of our country remains an imperative priority for us.
How to apply?
To *become a Shell Retailer Click “Apply Now” and follow the directions on your screen to complete the application. It will take approximately 30 minutes to complete the form! Good Luck!
How long has Shell been in South Africa?
Shell has been active in South Africa for over 114 years and has played an important role in the country, not only as a premier oil company, but also as a committed corporate citizen and change agent.
What is retail training?
Our Retailer Training Programme ensures that candidates are equipped with the necessary skills to successfully operate a service station. A further tailored support programme is available for retailers under the Transformation profile who will receive 5 years of business mentoring and coaching.
How long do filling stations stay open?
It’s also a business that has no downtime; most filling station franchises must remain open 24 hours a day, every day of the year.
Why do you have to have an independent filling station?
In theory, if you know what you’re doing and have enough cash, you can establish a filling station with your own brand.
What factors affect the profitability of a station?
Factors like labour costs, fluctuating oil prices, port delays, the power of large oil companies, and the strength of the rand , can all impact on station owner profit margins, and increase unpredictability.
Does Engen require cash?
Engen requires more than cash to be successful. Applicants will complete a psychometric assessment at their own cost to ensure a good fit with the business.
Does South Africa burn petrol?
South Africa burns a lot of petrol – and selling it is an often lucrative business.
Is it safe to buy a petrol station franchise?
Like other types of franchising, it may be a far safer option for first-time owners to buy an existing franchise from one of the major oil companies. Even these are rare. Most leading petrol station brands appear to advertise just one or two on their websites every few months.
Will petrol stations recover in 2020?
Although traffic levels dropped off significantly during 2020’s Covid-19 lockdowns and may take some time to recover, petrol stations are still likely to generate profits for a while to come yet. If this, along with South Africa’s high petrol price, sounds like money to your ears, keep in mind that the link between the amount of fuel pumped, ...
How many fuel stations are there in South Africa?
Still, given our dependence on petrol and diesel, the fuel retail industry is surprisingly resilient. There are close to 5,000 service stations in South Africa, and according to the Department of Energy, and these have an annual turnover of approximately R220 billion.
Why open an independent fuel station?
Opening an independent fuel station. The independent route allows for greater freedom, and potentially greater profit, without the restrictions of a parent company. In theory, if you know what you’re doing and have enough cash, you can establish a filling station with your own brand.
How much petrol does South Africa use?
South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year , according to the Department of Energy. Diesel isn't far behind.
Is petrol cheap in South Africa?
Be warned, it is not for everyone, and it isn't cheap. If petrol isn't your thing, see below for links to articles about opening up franchises in fast food, retail, and other sectors. South Africa pumps more petrol than any other country on the continent – some 11.7 billion litres per year, according to the Department of Energy.
Does South Africa burn petrol?
South Africa burns a lot of petrol – and selling it may be for you.
Do you need approval for a new petrol station?
New sites for petrol stations require approval from government, and you’ll need to jump through several legislative hoops as stipulated in the rather daunting Petroleum Products Act regarding petroleum products site and retail licences .
Is Engen a franchise in South Africa?
Most major oil companies operate their customer-facing operations as franchises in South Africa. The likes of Engen, Shell, Caltex, BP, or Sasol are open to new franchise locations, but with licensing and locations hard to come by, your best option may be to purchase an existing franchise operation .
Starting An Independent Filling Station
Franchise Operations
- Petro companies (Engen, Sasol, etc) offer franchises which include intensive training programmes and stipulations for franchisees. Sasol, for example, will mentor and promote franchisees on a monthly basis and assist the franchisee throughout the process. and visit each month and provide support and guidance. “If you have your own site, then Sasol will undertake an inspection of the …
Franchise Concept Comprise of Separate Business Units
- Often, depending on the franchise company, the concept could comprise of separate business units such as the forecourt, a convenience store, a bakery, car wash or a quick-service restaurant. These can be added under certain conditions. Each business unit has to adhere to individual standards for methods of operation, service levels, management, profitability and continuous tra…
A Business Plan Is A Must
- Create a working business plan. Make sure you include a provision on monitoring cash flow. Also, include marketing techniques to promote the filling station. Without one, you won’t be able to apply for funding.
Raising Money
- There are many different ways to cook an egg and the same applies to raising funds to start a petrol station, or for that matter, any new business. If traditional options such as banks and private funders don’t work, consider the possibility of collaboration with a group of investors. Visit the following links for guidance: 1. Overcoming financial hurdles 2. No capital, no collateral, no p…
Motivation
- If you are thinking of starting a filling station you should read Africa’s Greatest Entrepreneurs by Moky Makura, (2008) published in paperback by Penguin Books. It tells the story of T K Mmusi, a man armed with little knowledge or experience, who started a Total petrol station in Botwana. Its success provided the capital to start Pula Carriers, a logistics company with a fleet of 20 tankers…