The average investment cost is RM 3-4 million for the building, facilities, and equipment, as well as RM 550,000 for working capital (including cash security). Depending on the size and location of the service station, the amount may differ.
What is the cost of opening a gas station?
Fuel provision is a necessary service (at least for the time being) that accounts for more than 6% of South Africa’s gross domestic product (GDP). It is also one of the most robust industries in South Africa, and with the right approach, it can enjoy solid earnings even during economic downturns.
How much does it cost to open a petrol station business?
The cost of establishing a local petrol station varies between R15 million and R100 million, depending on the size and location. Furthermore, depending on the cost of development, predicted volumes, and profitability, the operation payment to the oil business ranges between R2.5 million and R15 million. Then there’s the typical working capital requirements for stock and operating expenses, which might range from R1.2 million to R1.5 million. Contrary to popular assumption, when the price of gasoline rises, the petrol station does not benefit. In reality, every R1 increase in fuel price necessitates an additional R100,000 in operating capital for the average service station. The RAS (short for Regulatory Accounting System) retailer margin, as estimated by the Department of Energy, is insufficient, and there is an under recovery of roughly seven cents per litre. What this all boils down to is that while a petrol station’s massive start-up expenditures are one thing, a successful petrol store also requires constant access to fuel.
What is the cost of starting a Shell franchise?
Dash In founded its first store in Laurel, Maryland, in 1979. It is currently found in over 60 areas in Maryland, Delaware, and Virginia in the United States.
Dash In is looking for franchise partners with a strong financial foundation, a desire to develop, and strong networking abilities.
On the Run
TMC Franchise Corporation, a subsidiary of Alimentation Couche-Tard, a Canadian convenience store corporation, franchises On the Run convenience stores in the United States. Mobil developed the original brand convenience store On the Run to go along with its gas stations. After the two oil corporations combined in 2000, it became the flagship store for Exxon and Mobil stations.
The initial investment to create an On the Run store is approximately $5,00,000, with a $1,00,00 cash flow requirement.
RaceTrac
The company opened its first gas station outlets in various Georgia and Alabama regions. They currently operate over 500 stores in various areas around the United States.
The RaceTrac gas station franchise requires an upfront investment of around $1$1.4 million. A franchise fee of $25,000 is required.
Marathon
The headquarters of Marathon Petroleum Corporation (MPC) are in Findlay, Ohio. The corporation owns and operates the country’s largest refining system.
The cost of opening a Marathon gas station outlet, including property investment, is estimated to be roughly $2,000,000. The store’s annual operating expenditures are $250,000. Furthermore, an annual expenditure of roughly $160,000 will be necessary to purchase and stock products.
Alliance Energy Gas Station Franchise
Global Partners LP’s retail division is Alliance Energy. It’s in the Northeast of the United States. Alliance Energy is a gasoline station and convenience store network owned and controlled by the firm, as well as a gasoline distributor to leased and independently owned stations.
Alliance Energy provides dealerships the opportunity to lease gas stations at numerous sites throughout the company’s northeast territory.
Express Convenience
U.S. Oil has a retail brand called Express. It is one of the Midwest’s most well-known fuel suppliers. Since 1984, the company has been giving franchise opportunities.
Depending on the size and other considerations, the total investment necessary to open an express shop franchise is projected to be around $165200K.
Kangaroo Express
Alimentation Couche-Tard owns the Kangaroo Express convenience store chain (ACT). It is a firm that operates convenience stores in Canada. They operate over 1,500 petrol stations throughout 13 states.
Franchise possibilities are available to financially sound and deserving people.
Murphy USA
Murphy USA runs more than 1,470 retail stations under the Murphy USA and Murphy Express brands in 26 states across the United States.
To open a Murphy franchise, an estimated liquid cash investment of at least $100,000 is necessary.
Shell Gas Station Franchise
Shell is a well-known brand for petroleum products all over the world. The initial investment required to open a Shell gas station franchise is estimated to be roughly $2,000,000. You must also invest in operating and purchasing refueling inventory.
Extra Mile Gas Station Franchise
Extra Mile retail convenience outlets sell both gasoline and food goods from the well-known Chevron brand. The company was founded in 2007 and now operates over 800 convenience stores throughout California, Oregon, and Washington.
The initial investment required to open an Extra Mile convenience store and gas station franchise is projected to be between $1.5 and $2.5 million.
Quik Stop
In the year 1966, Quik Stop opened its first franchise location in Hayward, California. In the year 2018, the EG group purchased all Quik Stop shops. Quik Stop has over 100 stations, mostly in Northern California and Northern Nevada, that provide fuel and convenience store services.
Though the cost of starting a Quik Stop franchise is unknown, buying an operating business would set you back roughly $2,00,000 with an additional $1,00,000 in cash flow.
Deserving aspiring applicants are offered franchise opportunities by the company. Quik Stop franchisees get a lot of help from the franchisor when it comes to opening a gas station and marketing it.
Quik Stop is a chain of convenience stores with over 100 sites. It provides classroom training, promotional advertising, marketing support, bookkeeping, and accounting assistance to small business owners.
It goes without saying that the gas station franchise business is profitable. To be profitable and successful, however, it takes a significant investment and commitment. Opening a gas station franchise business is worth considering if you have the necessary financial resources and want to start a retail business in the oil and gas industry.
What does it cost to own a gas station?
How much does a gas station owner make? In India, a fuel station owner can make up to Rs 3,58,000 per month. Your monthly gross earnings will be 5,70,000 Rupees if your commission is 3 Rupees per litre.
How am I going to be able to own a gas station?
Example of Petrol Station Purchase Requirements
- The business is being sold for R 5 000 000.00, with a net profit of R 120,000 each month.
- Plus, there’s an R600 000.00 stock.
- Plus R 500 000.00 in working capital.
- Other: e.g., training, application for a license, etc.
- R800,000 in fuel guarantee from the oil firm
- TOTAL REQUIREMENT FOR FUNDING: R 7 000 000.00
Is it profitable to run a gas station?
Is it profitable to own a gas station? A petrol station, as we all know, is open 24 hours a day, seven days a week, and you may easily make a profit of 2 to 2.5 rupees per litre on petrol and 1.80 to 2.40 rupees per litre on diesel. The monthly profit ranges from 1 to 2 lakh rupees.