How much it costs to buy a petrol station like Engen, Sasol, or Shell – or go it alone entirely | Business Insider

  • 📰 BISouthAfrica
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

A new station will easily set you back several million - and increases in the petrol price will require access to a surplus of working capital.

Much of this would have moved through the roughly 5,000 commercial brand name filling stations around South Africa - many of which are owned by independent franchisees.contributing 6%

It's also a resilient industry despite tough economic times - and with add-ons like convenience stores and coffee shops, it's often profitable through multiple revenue streams.But buying a filling station isn't cheap - nor is it easy. It's an industry that the South African government still regulates heavily and one that now requires 24-hour attention every day of the year.

For a franchise of this size and volume, Engen is asking for R8.39 million, which includes a R1.5 million working capital requirement. Franchisees must have 20% of this as unencumbered cash.Shell is a global filling station franchise with a strong presence in South Africa. Shell has about 700 stations throughout South Africa, many of which are on long-haul routes with strong fast-food restaurants attached.

Sasol does not disclose the total investment required by prospective franchisees and says it varies from site to site.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

BISouthAfrica Always a laugh to pull into a petrol station with an electric car

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 34. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Sasol share rout wipes R13bn off its market valueSA energy producer's half-year profit guidance sends shockwaves through market
Source: BDliveSA - 🏆 12. / 63 Read more »