How To Start A Gasoline Station Business In The Philippines?

Obtain finances to purchase a gas station. Start by speaking with banking institutions. Take your business plan to a loan officer and inquire about business loans. Consider bringing in outside investment. A company broker in your state can assist you with further alternatives.

In the Philippines, how much does it cost to open a petrol station?

Petron, which supplies about half of the country’s gasoline, has a unique approach to attracting potential investors, which players may find comparable to how entrepreneurship is taught in games like Diner Dash: you can start your gas station with just a few pumps and expand as demand grows. Getting your own Petron gas station can be more appealing than ever before, thanks to a very flexible expansion option available to franchisees.

To start a Petron franchise, you’ll need your own land on which to build your gas station, as well as a total investment cost of P1 million to P2.5 million, excluding a P100,000 cash bond. Expect your riches to flow like black gold once you’ve finished.

What steps do I need to take to open a gas station in the Philippines?

Increasing the number of vehicle production necessitates the use of gas, which is a valuable commodity in today’s world. The economy is influenced by gas and oil, particularly in middle-eastern countries where these resources are plentiful and the economy is thriving. Yes, the price of gasoline has an impact on transportation, which in turn has an impact on the price of products and services. Why not try your hand at the game of power and prospective monopolies in specific markets if you’re an entrepreneur ready for a huge risk? Find the best gas station franchise for you in the list below!

Shell Gas Station

A major player in the gas monopoly and other energy-related businesses. Because they are one of the most reputable oil companies, the product’s quality may be guaranteed. Despite the fact that the franchise and investment are quite costly, the payout is substantial when compared to other types of business franchises.

Petron “Bulilit Gas Station

Petron, the Philippines’ largest oil refining and marketing corporation, supplies over a third of the country’s oil needs. They sell gasoline, diesel, jet fuel, LPG, kerosene, and a variety of other products through the country’s largest retail network of 1,900 gasoline stations. It’s advisable not to lose out on this chance to franchise the largest local oil company, as it guarantees a successful future and returns!

  • Letter of Intent (containing full name, residence/office address, contact information, and proposed lot address)

San Miguel Corp. Head Office Complex, 40 San Miguel Avenue, Mandaluyong City 1150 (mailing address).

Phoenix Petroleum Gas Station

When it created a network of retail stations in the north, what began as a local firm in Davao began to make a name for itself. This company became the country’s leading independent oil company and one of several petroleum brands trusted by Filipinos as a result of awards recognizing the particular Filipino efforts evidenced by its success. Phoenix Petroleum will not let you down if you seek a firm that will help you achieve your goals while requiring little investment.

3rd Avenue corner 31st Street, 25th Floor Fort Legend Towers, Fort Bonifacio Global City, Taguig City 1634

Seaoil Gas Station

Seaoil has endured the test of time and is a good choice because of its consistent demand. It began as a depot facility in Mandaluyong City in the 1980s and has since become one of the pioneers in terms of taking risks and succeeding despite the presence of many giants. This is ideal for entrepreneurs that share the same philosophy but want to play it safe with a low-risk investment!

F. Ortigas Jr. Road (previously Emerald Ave.), Ortigas Center, Pasig, Philippines. Address: 22nd Floor, The Taipan Place, F. Ortigas Jr. Road (formerly Emerald Ave.), Ortigas Center, Pasig, Philippines.

Eastern Petroleum Gas Station

Another independent company that serves the entire country, their 20+ year history has demonstrated significant expansion and inclusion as one of the Philippines’ premier independent oil companies. They ensure that their investors succeed in their investments by giving them options and assisting them in achieving their objectives. If you’re looking for a better way to make money, look no further!

  • Civil and mechanical construction (Gasoline station canopy, underground tanks and Pumps)

Large Station (at least 5 pumps and 3 islands) – Investment starts at P8 million.

Address: 2210 Don Chino Roces Avenue, Makati City, 7th Floor Cityland Pasong Tamo Tower

What does it take to start a gas station business?

What does it take to open a gas station? As previously stated, opening a gas station entails a significant financial investment. To cover the following initial expenditures, you should budget at least $300,000: Purchasing the property.

In the Philippines, how much does a gas station make?

Hi. I’m opening a petrol station, and this will be my first experience with a more “organized” business operation. more structured in the sense that I have other family members who are also investors.

I’ve been running a transportation company on the side, but only unofficially. This time, I’ll have to do the forecasting, ROI, and other things myself.

As a result, I’d want to seek your advice on how to proceed. I’m working on a business plan and would appreciate it if you could send me a template and a sample ROI calculation. Thank you so much, and more power to you!

Hi. Are you planning to franchise the petrol station? If that’s the case, I’m sure your fuel supplier or franchiser can advise you on how to run the business, particularly the data you’ll need to track and evaluate.

When it comes to calculating ROI, though, it’s always a good idea to start with a simple and broad approach.

To begin, make a list of the startup costs as well as the anticipated monthly (overhead) expenses. Provide as much information as possible. Consider the costs of licensing and obtaining a business permit. Include the leasehold upgrades and other start-up fees as well. For the monthly expenses, add in the cost of depreciation and other minor miscellaneous charges.

Second, survey the area where you intend to set up shop. Calculate how many consumers you can realistically serve in a day. This will provide you with an estimate of your gross daily sales as well as your net daily revenue (profit)

As an example, let’s say your startup costs are $2 million and your monthly expenses are P500,000. Then there are some basic projections for your sales and earnings:

  • Estimated daily net income (based on earning P20 for every P100 spent on gas): P20,000
  • Monthly net income estimate: P100,000 (20,000 x 30 days less monthly expenses of 500,000)

To calculate your predicted ROI, simply divide your start-up capital by your estimated monthly net income. So, in our case, 2,000,000 divided by P100,000 = 20 months.

In terms of the template, I recommend doing a search on the internet because there are a lot of them available. However, you are not needed to use a template when completing these. You’ll be OK as long as it’s detailed and easy to comprehend.

Sari-Sari Store Business

Hi. By chance, I came across your website, and it prompted me to take stock of the sari-sari store that my mother has requested me to handle.

It’s been with our family since 1982 and has managed to survive and support our needs, but there hasn’t been any growth in the firm, in my perspective. Since 1982, the store has essentially remained the same.

I have no managerial experience but am ready to learn. Given that I am now working, this would be a fantastic challenge.

Please offer your financial management advice for a sari-sari shop. I’m not sure what to do about inventory, how to plot expenses versus profit, and other such things. Thank you very much.

Hi. If the sari-sari business has lasted this long, it must be doing something well, in my perspective. So the first thing I’d suggest is that you inquire about your parents’ company management.

I learned from experience (we used to operate a sari-sari store) that the most important thing a sari-sari store owner should remember is to never take anything from the inventory for personal use.

It’s so easy to reach for a bottle of soft drink every now and then when you’re thirsty. If you ever find yourself in this situation, make sure you pay for it.

I’m not sure how big your sari-sari business is or how much space you have, but I believe that turning it into a mini-grocery is the next logical step for expansion.

The inventory of a grocery store is strictly controlled. This implies that everything should be in order. All of the things you sell come in a variety of brands and sizes.

You can start your inventory count in your next purchases to avoid disrupting your existing operations. Using a computer spreadsheet, such as Excel, or an inventory program.

Make a list of everything you purchase. This entails keeping track of the stock group, the item, the size, the brand, the purchase price, the supplier, the amount purchased, the purchase date, and the selling price.

SM Supermarket | 5 cans | Dec 1 | P60 | Canned goods | Corned beef | 200gms | Purefoods | P50 |

You should also keep an itemized account of everything that is purchased in your sari-sari store on a daily basis. In this scenario, a point-of-sale tool can help, but doing it in Excel is also a smart option.

After a few months of doing this, you’ll have a good notion of how much the sari-sari store is making (net income).

But, more significantly, you’ll learn which goods sell quickly and others take longer to sell. You can do a lot with this information to figure out which things to buy. Hold off buying the non-moving items and stock up on the sellable ones.

Meanwhile, all you have to do for the profit analysis is add up the net income from your daily sales. Because you’re keeping track of all the products you’ve purchased and know how much you paid for them, you’ll be able to calculate the item’s net profit.

Let’s imagine your total net revenue in a month is P20,000. Then deduct the store’s monthly expenses, such as employee salaries, utility bills, rent, and so on. And you’ll find out how much profit you made in a month.

Knowing this number can help you figure out if the sari-sari business has the potential to grow into a mini-market. Also, make plans for the future of the company.

Finally, while you’re about it, a survey of adjacent sari-sari stores would be beneficial so you can keep track of the competition’s prices and change yours accordingly.

I hope that this advise will assist you in starting or expanding your family’s sari-sari store.

This concludes today’s Reader Mail. I hope you were able to learn anything useful from it.

Please keep in mind that my responses are completely based on my professional experience and personal experiences. As a result, any corrections, suggestions, or new information from my readers are appreciated.

So, if you have one, please don’t hesitate to leave a comment below. Thanks!

Is it profitable to own a gas station?

Gas stations are a popular investment due to their lucrative nature and the fact that they give owners with a stable yet simple business to handle.

What is the cost of a Caltex franchise in the Philippines?

  • Approximately P5 million to P7 million is necessary for facilities and equipment.
  • Lot Size/Layout Requirements: A minimum design layout of 1,200 sqm is required.
  • Lot Lease Agreement Requirements: The lease agreement must be for a minimum of 10 years.
  • Building & Structure Requirements: The Franchisee must build these in accordance with Caltex’s standard design.
  • Equipment requirements: These must only be obtained from Caltex-approved dealers.
  • Caltex will provide all branding and signage materials.

How do I get Petron to open?

Fill out our Dealer Application Form as the initial step. The next step is to draft a letter of intent and submit it together with additional supporting documentation. Submit your application to our offices after all of your documentation are completed.

What is the cost of a BP franchise?

The fuel retail industry, according to James Noble, a business development manager at Absa Business Banking, is one of the more resilient industries capable of producing substantial profits during times of poor national economic growth.

“The industry has shown to be recession-resistant.” As a result, the industry is worth considering for persons seeking financial independence and wealth development prospects, as well as established business owners looking to expand their portfolio,” Noble said.

There are around 4,600 service stations across the country that pump approximately 300,000 litres of fuel per month.

Individual owners own and run service stations, but the land and the assets on it is often controlled by the top six oil firms, according to Absa.

This relationship is managed through a franchise or retail agreement. A supply agreement oversees the connection with the gasoline supplier in some cases where the merchant owns the land and assets.

“You may expect setup costs for a local service station property development to range from R15 million for an average site and R100 million for a double-sided site on the highway, for example.”

“Depending on the cost of development, predicted volumes, and profitability, the average key money for a new service station operation payable to the oil firm ranges between R2.5 million and R15 million,” Noble added.

The financial demand for routine working capital requirements for stock and operational expenses might range from R1.2 million to R1.5 million.

Some of the locations now require infrastructure worth up to R2 million as a result of recent fuel price rises. According to him, a service station firm requires an additional R100,000 in operating capital for every R1 increase in fuel price.

Fuel retail is a highly specialized industry, with operating margins and financial performance influenced by a variety of macro and microeconomic factors such as oil prices, R/$ exchange rates, rising operating expenses, infrastructure development (such as roads and public transportation), consumer purchasing power, and regulatory impact, according to Noble.

“The gasoline price is one of the most critical influencers or elements that affects the bottom line of service station businesses. When fuel prices rise, most people assume that service station businesses profit more.

“However, this is not the case the business’ profit margin has shrunk as a result of an increase in operational expenses that are directly proportional to sales, such as cash management and merchant service fees.”

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.

Absa emphasised that the business must recover the additional operational costs from the Entrepreneurial Compensation margin, which is currently at 26.3 cents per litre.

Furthermore, as the price of gasoline rises, motorists’ budgets may have little room to expand, prompting many customers to use public transportation, such as the Gautrain, carpool with coworkers, and fill up their vehicles less regularly, according to the report.

Because fuel prices vary and merchants have set margins, it is critical for the service station industry to increase fuel volumes and income.

“As a result, gasoline merchants are utilizing alternative profit opportunities (APOs) that contribute to the forecourt’s success by offering extra revenue streams,” Noble explained.

Convenience stores have long been the most typical APO option, especially as South Africans have begun to work longer hours and had less time to cook meals.

Because you can fill up your car and buy bread and milk, as well as quick lunches, service stations are able to capitalize on convenience more than traditional stores, according to the lender.

“These days, established merchants like Woolworths, Pick n Pay, OK, Freshstop, and Spar are teaming with oil firms and service station businesses to take advantage of that convenience and grow their market share.”

“We’re also seeing additional APOs, such as carwash services, fast service eateries like Wimpy, Debonairs, and Steers, as well as ice cream shops and coffee franchise brands like Mugg and Bean, Vida e Caffe, and Seattle Coffee, that have began to appear at service station companies,” Noble added.

He also mentioned loyalty programs as a way to increase foot traffic at service station businesses. More firms are cooperating with Sasol to provide customers up to 15% cash back on fuel purchases, such as Avios, SAA Voyager, and companies like Clicks, Dischem, and Absa Rewards.

This includes loyalty points, which they may earn and use for partner discounts and offers.

“Viability is probably the most critical concern,” Noble remarked. “There are three methods to get into the petroleum retail market in South Africa, the first of which is to invest in the establishment of a service station, which includes the physical facility, land, and associated assets” (property investment).

“Alternatively, you can buy just the business operation or the property and the operation together.”

If you wish to buy an existing service station, Absa advises that the profitability of the business will be the basis for the cost.

This normally ranges from R2.5 million to R35 million. The industry standard is to utilize a method that involves multiplying average monthly EBITDA before owners’ pay by 36.

“All of these requirements mean that you’ll need a well-thought-out business plan to offer to a bank or alternative lender.”

“A thorough understanding of the fuel retail sector is also required, as is a financial institution like Absa that understands the challenges of the industry and can partner with you on your journey to successfully owning and/or operating your own service station business through its financial solutions,” Noble said.

Is it profitable to own a gas station?

Gas stations and the convenience stores that serve them are currently among the most profitable enterprises in the United States. Over 100,000 gas stations/convenience stores operate across the country, generating over $400 billion in annual revenue.

What are the ways that gas stations make money?

The majority of revenues are made by station owners in their stores, where they sell food and drinks, as well as alcohol where it is legal.

“The objective is to have a very competitive gas price so that you can profit from the transaction when they go into the store,” Lenard explained. According to a recent convenience store association survey, nearly 60% of consumers who come in for gas also go inside the store.

Nordman said he hasn’t noticed clients cutting back on their spending when his stores are full, but he expects it. “Credit card transactions account for 80% of all transactions….” When the credit card statement arrives, it will finally strike the consumer,” he warned. “I believe that’s when we’ll see it.”

Inflation and goods shortages are wreaking havoc on radio stations, just as they are on small companies worldwide. Over the last few months, wholesale prices for everything from coffee to toilet paper to beef jerky have risen dramatically, and labor costs have risen as well.