When you consider the big capital investment and massive quantities of working capital required, you might be better off continuing to pay someone else to handle the headache of filling up your vehicle.
Despite our reliance on gasoline and diesel, the fuel retail industry has shown to be surprisingly durable. The money is also beneficial to individuals who have already established themselves. According to the Department of Energy, there are around 5,000 service stations in South Africa, with an annual turnover of approximately R220 billion.
Fuel stations are also beginning to diversify, which means you have the opportunity to add new revenue streams to your company. Although fuel sales still account for the majority of profits at filling stations in South Africa (between 80% and 90%, according to Absa), forecourt businesses such as convenience stores, coffee shops, and restaurants can provide a welcome boost.
In South Africa, you can either open your own filling station or purchase an existing franchise, each with its own set of advantages and disadvantages. And if you’re buying an existing station, whether independently or privately, the deciding factor is usually how much fuel the station pumps on average per month.
In South Africa, how many Engen stations are there?
We are committed to offering exceptional customer service throughout a vast footprint in Sub-Saharan Africa, with approximately 1 280 service stations and hundreds of commercial customers, always living up to our brand promise of ‘With us, you are Number One.’
In South Africa, how many stations are there?
There were just a few non-refining wholesalers offering petrol and diesel in South Africa until recently. There are now a few that have been registered with the Department of Energy (DOE). In South Africa, there are around 4 600 service stations (forecourts – both company and dealer operated).
In South Africa, how many Sasol gas stations are there?
Lightstone, a data and research firm, has announced its latest Explore findings, which show which service station brands in South Africa are the most successful.
Despite not having the most service stations in South Africa, Sasol service stations draw the most visitors to their forecourts, with Shell service stations coming in second.
Lightstone Explore and Tracker launched a 50/50 joint venture in which Lightstone analyzed the 2.5 million daily vehicle travels that Tracker users take. This equates to 450,000 vehicles and 37 million kilometers driven per day in South Africa, according to Lightstone, which is statistically significant enough to create an accurate picture of the average South African driver’s habits.
Every trip’s start and finish points are sent to Lightstone three days after the trip; the vehicle’s identification number (which reveals the make, owner, and model); and the vehicle’s value, as well as where it rests at night (which can be used to determine average income).
Tracker’s travel data also discloses where car owners fill up their vehicles, which service stations they like to pass past, and how long they spend on average at a service station.
Lightstone Explore has amassed a database of 3,155 precisely plotted service stations around the United States.
In the last three months, 9.8 million vehicles equipped with Tracker devices have visited these service stations, averaging 3,117 visits per service station.
Over the last three months, Sasol has had the highest visit ratio, with 4,221 visits to each of its 294 service stations, showing its superior site position, according to Lightstone.
With 69,949 visits to its Ultra City sites on the N1 between Johannesburg and Pretoria, the BritishDutch global oil and gas firm also had the most popular service station.
“When comparing the amount of consumers stopping at service stations with those driving by a service station, known as the conversion ratio,” Lightstone added, “it appears Sasol is the most successful in ensuring cars pull in at their forecourts.”
With a conversion rate of 6.2 percent, Sasol is the most successful. Here’s how the stations compare:
Caltex has a 4.3 percent market share.
Engen has the largest service station network in South Africa, with 861 locations, but just a 5.3 percent conversion rate.
According to Lightsone, food retailers and brands had a significant impact on conversions, with BP service stations aligned with Pick n Pay seeing a conversion ratio of 8.95 percent versus the 4.9 percent average, and Engen’s with Woolworths seeing a conversion ratio of 8% versus the 5.3 percent average.
Fast food had an even greater influence, with Steers shops converting 10.4 percent of the time and Wimpy sites converting 14.9 percent of the time.
This success, however, can be ascribed to the fact that most Engen Wimpys are located near freeways, according to Lightstone.
In South Africa, how many petroleum companies are there?
The manufacture of petroleum products from crude oil and natural gas in South Africa, as well as the wholesale and retail trading of these products, are the emphasis of this paper. There is also information about the production of lubricating oils and greases, as well as other petroleum/synthesised products.
The study includes detailed information on the state and size of the industry, as well as information on advancements and corporate actions, as well as sales, pricing, and trade statistics.
76 organizations are profiled, including state-owned PetroSA, key players like Sasol and Engen, suppliers like Easigas, and refiners like Natref.
South Africa’s Petroleum Industry:
South Africa’s fuel sector, which includes petrol, diesel, jet fuel, illuminating paraffin, fuel oil, bitumen, and liquefied petroleum gas, accounts for roughly 8.5 percent of the country’s GDP and provides around 18 percent of the country’s primary energy. To avert a worsening trade deficit in liquid fuels, South Africa needs to invest in its old refineries, especially because half of the country’s six refineries are now closed.
However, shale gas reserves in the Karoo and two recent gas finds could reduce South Africa’s reliance on diminishing domestic gas supplies and gas imports.
Effect of the Pandemic:
While the petroleum industry was designated as a vital service, allowing fuel stations and refineries to remain open during the pandemic, dwindling demand forced refineries to temporarily close. Due to a substantial drop in demand, gasoline sales plummeted by around 40% and diesel sales fell by 34% in 2020.
For the first time in history, the pandemic caused the price of oil to drop to US$37 a barrel. The drop in fuel demand has put a strain on many gas stations.
Imports are on the rise:
The downstream refined product market has evolved from a net export to a net import market over time. South Africa has a petrol and diesel trade deficit, owing to demand from Eskom’s open cycle gas turbines as well as demand from vital industries. As the country’s six refineries face an unclear future, South Africa is anticipated to become more reliant on imported petroleum.
1. EXAMPLE OF INTRODUCTION
2. THE INDUSTRY’S DESCRIPTION
3. THE INDUSTRY’S SIZE
4. THE INDUSTRY’S STATUS
FACTORS INFLUENCING INFLUENCING INFLUENCING INFLUENCING INFL
COMPETITION is number six.
7. ANALYSIS OF STRENGTHS AND WEAKNESS
8. PERSPECTIVE
INDUSTRY ASSOCIATIONS (nine)
REFERENCES TEN
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What is the total number of garages in South Africa?
We are a prominent player in the petrochemical business in South Africa, with a portfolio of 547 service stations offering goods ranging from jet fuel to liquid petroleum gas to lubricants, grease, and kerosene.
In South Africa, how many Shell garages are there?
Lightstone, a data analytics firm, has released a new analysis that shows which petrol station brands have the most presence in South Africa.
The research is based on data from Trackers installed in half a million vehicles, which provides insights into South African motorists’ movements and choices.
Lightstone has also collected the locations of the majority of the service station landscape, about 4,027 service stations, highlighting the fact that six companies dominate the South African service station landscape (93 percent of all outlets).
According to the data, Engen has the country’s largest network, with slightly under a thousand stations spread across the country.
Caltex (683 stations) and Shell (637) are the next two stations.
Puma, with 114 stores, Exel, with 59 stores, and Ener-Gi, with 25 service stations around the country, are among the lesser-known companies with a greater national footprint.
Despite the fact that half of the service stations are in non-metro areas, only 38% of cars (aged 0 to 15 years) ‘live’ in non-metro areas, according to Lightstone.
“This is likely due to the dual duty of service stations in non-metro locations: they must be able to serve both non-metro based cars and the large majority of metro based cars traveling through non-metro areas during long-distance travel.” Linda Reid, Lightstone’s director of commercial property, agreed.
“Ironically, this association does not hold true for township regions,” she explained.
“Overall, township areas account for about 12% of all cars on the road (aged 0 to 15 years), and the ratio of service stations to vehicles is identical in both non-metro and metro township regions.
In South Africa, where is petrol produced?
There has been a lot of interest in South Africa’s hydrocarbon potential in the previous five years. Several foreign oil firms have bought offshore exploration rights since 2012, including Shell, Total, ExxonMobil, and Anadarko. Shell is one of three firms that have applied to explore the Karoo Basin with the goal of obtaining shale gas by hydraulic fracturing.
In South Africa, oil and gas output is currently minimal. The proven oil reserves of South Africa are estimated to be at 15 million barrels.
South Africa’s only commercial oil and gas production has been in the Bredasdorp Basin, where the Petroleum Oil and Gas Corporation of South Africa operates a block (PetroSA). While discoveries in the Pletmos and Orange Basins have been made, none of these fields have yet to begin commercial production. The Ibhubesi Gas Field in the Orange Basin has been given a production right, however production is not scheduled to begin until late 2017.
What is the breakdown of domestic energy use in terms of oil and gas, as well as imports and exports?
Coal accounted for 70% of South Africa’s total primary energy consumption in 2014, followed by oil (23%), natural gas (3%), nuclear energy (3%), and renewable energies (3%). (1 percent ). As a result, South Africa’s energy needs are largely met by coal.
Imported crude oil supplies roughly 60% of South Africa’s domestic fuel needs, with 50% of the refined product coming from local refineries and 10% from international refineries. Coal-to-liquids synthetic fuel generated at Sasol’s Secunda plant (35%) and gas-to-liquid synthetic fuel (5%) produced by PetroSA from gas recovered from the Bredasdorp Basin provide the remaining 40% of demand.
Apart from the limited amount of natural gas produced offshore by PetroSA, all of South Africa’s natural gas needs are fulfilled by imports. The transmission pipeline that transports gas from Sasol’s Pande and Temane gas fields in Mozambique is South Africa’s sole source of imported natural gas. Sasol, the South African Gas Development Company (Pty) Ltd, and Companhia Mocambicana de Gasoduto SARL collaborated on the pipeline.
What are the current and projected trends in oil and gas production and demand in your jurisdiction, and what policies has your government implemented to address these issues?
Over the previous half-century, domestic production of petroleum products has been declining. Recent offshore exploration activities could result in discoveries that revers this trend.
South Africa’s energy demand is predicted to double by 2030, according to the Government Communication and Information System’s 2012/2013 South Africa Energy Yearbook. However, future energy consumption, which is primarily reliant on economic growth, is a source of considerable uncertainty. According to the Integrated Resource Plan, coal’s importance in satisfying domestic demand is expected to drop dramatically in the medium term, allowing other resources, such as oil and gas, to fill the gap.
The growing interest in South Africa’s offshore oil and gas deposits has generated legislative and regulatory actions aimed at maximizing the benefits of oil and gas development in the country. The Mineral and Petroleum Resources Development Amendment Bill, 2013, which is likely to be passed by the end of 2016, aims to give industry with much-needed legal clarity in order to encourage investment in oil and gas development.
The government has implemented a number of policies and programs to expand the use of gas in South Africa’s energy industry. The Department of Energy is anticipated to release a Gas Utilization Master Plan soon, which will serve as a framework for developing the infrastructure and incentives needed to achieve this goal. The government is also working on a Gas to Power Program, which will acquire gas-generated power (from imported gas) from the private sector. This program is intended to develop a “anchor gas” demand that will help to grow a successful gas sector that can eventually be met using indigenous gas resources.
In your jurisdiction, what are the most important rules and regulations controlling the oil and gas industry?
- The Mineral and Petroleum Resources Development Act (28/2002) is the framework legislation under which upstream oil and gas rights, as well as prospecting and mining rights, are awarded and governed. In the medium term, the government has stated that it will strive to separate oil and gas regulation from mining regulation by creating a distinct legislative framework.
- The Petroleum Pipelines Act (60/2003) sets out the rules for the building and operation of petroleum pipelines, loading stations, and storage facilities.
- The Petroleum Products Act (120/1977) governs the downstream industry, establishing a licensing framework for wholesalers, retailers, and petroleum product makers.
- The Gas Act (48/2001) establishes the regulatory framework for gas transport, storage, distribution, liquefaction, and re-gasification facilities, as well as gas trading.
- The National Environmental Management Act (107/1999) was enacted in South Africa as a foundation for environmental management. It requires environmental approval for a variety of activities, including oil and gas exploration, production, and decommissioning. Since November 2015, the act has imposed additional environmental requirements, such as the supply of financial resources for environmental obligations relating to the rehabilitation and remediation of areas where exploration and production activities have taken place.
- South Africa’s import and export of petroleum and petroleum products is governed by the International Trade and Administration Act (71/2002). The minister of trade publishes a list of the commodities that require import and export permits.
What government agencies are responsible for regulating the oil and gas business, and what are their powers?
- Mineral Resources Department The Mineral and Petroleum Resources Development Act, which governs the development and production of petroleum resources, is administered by the Department of Mineral Resources. It is also the authority in charge of issuing environmental permits under the National Environmental Management Act.
- Energy Department (DOE)
- Under the Petroleum Products Act, the licensing authority is the Department of Energy’s controller of petroleum products.
- South Africa’s Petroleum Agency
- In accordance with the Mineral and Petroleum Resources Development Act, the Petroleum Agency has been granted certain first-tier functions relating to the receipt and consideration of applications for petroleum rights and permissions.
- South Africa’s National Energy Regulator (NERSA)
- Under the Petroleum Pipelines Act and the Gas Act, NERSA administers and is the competent licensing authority.
The Mineral and Petroleum Resources Development Act vests South Africa’s mineral and petroleum resources in the country, with the minister of mineral resources functioning as the government’s custodian of the country’s petroleum resources.
Surface rights and mineral/petroleum rights are distinguished in South African law. The Mineral and Petroleum Resources Development Act gives legal effect to this distinction, vesting all of the nation’s mineral and petroleum resources in the state and empowering the minister of mineral resources to grant rights to explore for and extract these resources, subject only to payment of reasonable compensation to the landowner for any resulting diminution in the land’s usefulness.
A mineral or petroleum right is a property right, according to the Mineral and Petroleum Resources Development Act. It further states that the holder of a mineral or petroleum right has the right to build any plant or infrastructure necessary to undertake its operations in the relevant region.
What regulations and processes apply to the issuance of exploration and production rights (e.g., through licenses, leases, concessions, service contracts, and production sharing agreements)?
South Africa has a licensing system in place that requires an application to the minister of mineral resources to gain access to petroleum resources. These types of applications are handled on a first-come, first-served basis. The following types of petroleum rights are available:
- Permission to do reconnaissance The holder of this non-exclusive permission is authorized to conduct geological, geophysical, and photo geological surveys.
- Permit for technical cooperation
- This special authorization allows the holder to perform a technical cooperation study based on data from the South African Petroleum Agency. A technical cooperation permit holder has the exclusive right to apply for and receive an exploration right in the area covered by the permit.
- Right exploration
- This right permits the holder to perform exploration operations on the acreage as well as all related activities. When an exploration right is renewed, it is normally necessary to relinquish a portion of the exploration area. Although statute does not specify the size of the land to be relinquished, it has become customary practice for the relinquishment obligation to take the following form:
- On conclusion of the initial exploration term, 20% of the exploration area is relinquished;
- Following that, at the end of the first renewal period, there must be a 15% relinquishment of the exploration area, and at the end of the second renewal period, there must be a 15% relinquishment of the exploration area.
- An exploration right holder has the sole right to apply for and receive a production right over the exploring area.
- Right production
- The possessor of this right has the ability to perform production operations on the land.
- safety and health;
- incident recording and inquiry;
- In some cases, medical surveillance is required;
- measures against fire;
- protocols to follow; and
- To operate particular equipment, you must meet certain qualifications.
- is, among other things, illegal, dishonest, unapproved, or biased;
- constitutes a breach of trust, a breach of authority, or a violation of a legal responsibility or set of norms;
- is intended to produce an unjustifiable outcome; or
- constitutes any other unlawful or unauthorised inducement to do or not do something.
The statute applies to both the private and public sectors, and those found guilty of violating it face fines or jail, even life imprisonment.
A person in a position of power who has knowledge or suspicion of an offence of corruption, theft, fraud, extortion, forgery, or uttering a forged document (in excess of R100,000) and fails to disclose it to the South African Police Services commits a criminal crime. A person in a position of power who fails to report corruption knowledge or suspect can face up to ten years in prison.