How much does it cost to buy a petrol 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 buy a petrol station in South Africa?

According to Absa there are currently three different ways to open a petrol station in the country:

  1. Investing in the physical building, land and associated assets (prop-co).
  2. Purchase of the business operation only (op-co).
  3. Purchase of both (prop-co / op-co).

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 alternative profit opportunities, for instance, a convenience store, carwash, bakery and quick service restaurant, …

Do petrol stations make money in South Africa?

Although fuel sales still make up the majority of the profits at filling stations in South Africa (according to Absa, between 80% and 90% of profits), the additional income from forecourt businesses like convenience stores, coffee shops and restaurants, can be a nice supplement.

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How much does it cost to start a petrol pump?

Investment required to start petrol pump in rural and urban areas. Total investment is around 50 lakhs to 2 crores and it depends on locality. It will cost less i.e 50 – 60 lakhs in rural areas but in urban areas it will cost more because it is difficult to get license.

What is the cheapest franchise to start in South Africa?

8 South African franchises you can open for less than R1 million

  • Debonairs – from R900,500.
  • Wilcote – from R520,000.
  • 3@1 Business Centre – from R695,000 (ex VAT)
  • Zebro’s – from R949,000.
  • H20 International – from R325,000 (excluding VAT)
  • The Bed Shop – from R500,000.
  • Sorbet – from R1 million.

What is the most profitable business in South Africa?

Profitable Business Opportunities in South Africa

  • 1- Mobile Restaurant: …
  • 2- Budget Clothing Shop: …
  • 3- Business Setup Adviser: …
  • 4- Financial Adviser: …
  • 5- Niche Website/Information Portal: …
  • 6- Selling Online: …
  • 7- Foreign Cuisine Restaurant: …
  • 8- Web Design/Development:

What is the profit margin on petrol?

On average, a petrol bunk business owner or dealer earns a profit margin of Rs. 1.2 for every litre of petrol sold, whereas he earns Rs 1.8 for every litre of diesel. So, a petrol pump is a low-margin business, where you can generate good revenue and become profitable.

How do I start a petrol station?

The procedure and formalities for opening a petrol pump business in India is as follows:

  1. Eligibility Criteria for Opening a Petrol Pump in India. …
  2. Land Requirement. …
  3. Investment and Fees. …
  4. Application for License. …
  5. Obtaining Certificates. …
  6. Obtain Business Loan for Working Capital Needs.
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Which franchises are the most profitable in South Africa?

Which franchise makes the most money in South Africa?

  • KFC – from R6 million.
  • Nando’s – from R7 million.
  • Debonairs – from R2 million.
  • Steers – from R1.7 million.
  • McDonald’s – from R4 million.
  • Chicken Licken – from R4.8 million.
  • Roman’s Pizza – from R2.4 million.

How much do petrol stations make on fuel?

There is a good reason why nearly all filling stations are shops as well; profit margins on petrol are, according to the industry, around 2%, so they make most of their profits from overpriced sandwiches and drinks.

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