How Much Does It Cost To Build A Filling Station In South Africa

What is Filling Station ?

A filling station, also known as petrol station or gas station, is a facility that sells fuel and engine lubricants for motor vehicles.

The most common fuels sold in the 2010s were gasoline and diesel fuel.

How Much Does It Cost To Build 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 do I start a filling station in South Africa?

Requirements to Buy a Petrol Station Example

Selling Price of business R 5 000 000.00 net profit +- R 120,000 pm.

Plus: Stock R 600 000.00.

Plus Working Capital R 500 000.00.

Other: e.g. Training, Licence application, etc.

Oil company fuel guarantee R800,000.

TOTAL Funding Requirement R 7 000 000.00.

Are petrol stations profitable?

Although fuel gross profit margins are lower, fuel sales remain the primary income of a business, accounting for approximately 80% to 90% of an operation’s turnover, usually delivering greater profit than alternativ

How much profit do petrol stations make per litre?

The ACCC estimates that over the last 12 years, after deducting those expenses, the wholesale sector made an average annual net profit across all fuels of 1.7 cents per litre.

Is buying a petrol station a good investment?

The country’s continued reliance on fossil fuel means that petrol stations represent fairly low-risk investments, delivering a steady flow of rent over a typically long lease.

But would-be investors need to approach potential purchases with caution, as fuel leaks can be costly.