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Gasoline Station Franchise Philippines

Even during the pandemic, vehicles are still useful because they deliver essential goods, shuttle workers, transport the sick to the hospital, etc. As long as petroleum-fed cars are still running, the need for gasoline stations will continue.

Gasoline Stations Overview

The country needs on average 67.7 ML (million liters) of petroleum products every day. They based this figure on the first half of 2021 demand for petroleum products. Most of this volume goes through the gasoline stations.
The country has over 9,530 fuel retail outlets, with gasoline stations dominating the number.

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Automotive Industry Overview

In the first half of 2021, the sales of vehicles jumped by 56.1 percent compared to the same period last year, 2020. This figure comes from the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA).

In their December 2020 report, the Land Transportation Office (LTO) had registered 11,851,192 vehicles. These vehicles need gasoline or diesel to run. All of them need gasoline stations.
This blog will present to you the top gasoline franchises in the Philippines.

Pros and Cons of a Gasoline Station Business

Just like any business, the gasoline station business has its set of pros and cons. Before deciding to start the business, get to know the pros and cons.

Pros

1. A gasoline station has an in-demand product.
As long as petroleum-fueled vehicles are still running, gasoline stations will still be in demand. Vehicles need gasoline or diesel to run.

2. A gasoline station sells more than fuel.
Gas stations today have convenience stores. You sell snacks and beverages to the hungry and weary motorists.

Another addition is the repair and maintenance shop. You offer tune-up, change of engine or transmission oil, and other services. At times, some stations even provide a car wash service.

3. A gasoline station does not require skilled labor.
Most of the jobs in the gas station do not require specialized skills unless you have a repair shop. 

4. A gasoline station franchise may get some financial help.
The established and independent petroleum companies may help the new franchisee at the start.

5. A gasoline station can receive insurance protection.
If you enter franchising, the franchisor will have your station insured from environmental problems.

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Cons

1. The gasoline station business is subject to fuel price fluctuations.
The oil price in the international market affects the domestic prices of fuel. As the prices go high, fewer motorists come to the station to buy power. As the prices go down, more motorists come to the station to buy fuel.

2. Gasoline stations operate for extended hours.
Unless you are in rural areas, stations operate for extended hours. Many are even open 24/7.

3. A gasoline station business may be bound to fuel contracts.
If you are an independent station owner, your supplier may want a long-term fuel contract with you. This contract gives them business security, but it could put them in a difficult situation.

In franchise format, the franchisor may require you to agree on a minimum annual purchase requirement. Whether or not you sell below the minimum, you are to pay the minimum annual purchase requirement.

4. A gasoline station business can be a dangerous business.
Gasoline is flammable and toxic. Everyone should follow safety precautions.
Another problem is robbery. Gasoline stations are targets for hold-uppers. 

5. A gasoline station business may not be that profitable.
Independent station owners worry about this. But those in franchising worry more because the franchisor collects different fees from the franchisee.

6. A gasoline station business can have stiff competition.
Competition is certain, particularly in urban areas. Sometimes the competitor is just next door.

7. A gasoline station should have good pumps.
An inadequate number of pumps makes customers wait. The wait discourages customers.

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Succeeding in Gasoline Station Business

If you want to succeed in the gasoline station franchise business, there are two things needed.

Study Franchising 101

Arm yourself with the essentials of franchising. Franchise Market Philippines provides you with these essentials:

Apply practical operation tips

The following will help you succeed in the running of the business.

  • Hire the right employees. Remember the following:
    • Hire reliable people. You can trust them with the work given to them. They can work with minimal supervision.
    • Hire trustworthy people. You can trust them with money, especially the cashier.
    • Hire friendly people. You want to build relationships with your customers. Being friendly and courteous builds bridges with the customers.
  • Offer a competitive pricing strategy
    Study the market trends. Balance your need for profit and your demand for customers.  Make your pricing comparable or lower than your competitors.
  • Strengthen the convenience store
    Don’t forget the convenience store. It is there to support the gasoline business.
  • Use the best software system
    Good software makes the business efficient. Get a software system that can give you the needed sales information as soon as possible. Decision-making requires information.
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List of Top 10 Petroleum Companies Offering Gasoline Station Franchises

1. Petron Philippines

Petron is the leading petroleum company in the country right now. They are number one in oil refining and marketing. Their refining capacity is 268,000 barrels per day, and they supply around 31% of the country’s oil needs. Their 1,230 gasoline stations cover the whole of the Philippines.

They have three franchise models:

  • The Company-Owned Service Stations (COSS)
  • The Dealer Owned Service Stations (DOSS)
  • The Petron Bulilit Station or Micro Filling Stations (MFS)

Initial investment: PHP 4M to PHP 9M (COSS); amounts for DOSS and MFS are not available.
Website: https://www.petron.com/
Email: [email protected]
Contact Numbers: #PETRON (#738766)

2. Pilipinas Shell

Pilipinas Shell has been in the country for over 100 years. It started as Asiatic Petroleum Company (Philippine Islands) Ltd. in 1914. It is the second-largest petroleum company with 1,073 stations all over the country.  Oil refining and marketing are the major business of the company.

Shell has two franchise models:

  • Company Owned Dealer Operated (CODO).
  • Dealer Owned Dealer Operated (DODO)

Franchise fee: no franchise fee
Initial investment: PHP 5-8 Million (CODO), PHP 10-12 Million (DODO)
ROI: 20-30% (CODO & DODO)
Space requirement:  600-1000sqm with 35-60m frontage (DODO)
Website: https://pilipinas.shell.com.ph
Email: [email protected]
Contact Numbers: (02) 8878-8888  (Metro Manila), 1800-10000-1111 (PLDT Toll-Free)
1800-5888-1111 (BayanTel Toll-Free)

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3. Caltex (Chevron)

Chevron Philippines owns Caltex and has been operating in the country since 1914. It is also into oil refining and marketing through the Caltex brand.

As to the number of gasoline stations, it is the third-largest, with 700 stations all over the country.

Initial investment: PHP 8‒10 million
Space requirement: 1,000 sq. m. (minimum) with 30 m. frontage
Website: https://www.caltex.com/ph/investors.html
Email: [email protected]
Contact Numbers: (02) 88677710, (02) 77937600

4. Phoenix Petroleum Philippines

The company is the fastest-growing independent Filipino petroleum company in the country. It only started in 2002, but it now has 670 gasoline stations. This makes them the fourth largest petroleum company.

Phoenix Petroleum offers the following franchise models:

  • Company-Owned/Dealer-Operated (CODO)
  • Dealer-Owned/Dealer-Operated (DODO)

Initial investment: PHP 3.5 million (CODO), PHP 5 million (DODO)
Participation Fee: PHP50,000/year (CODO), PHP 35,000/year (DODO)
Space requirement: 800 sqm (minimum) with 30 m frontage
Website: https://www.phoenixfuels.ph/dealers/
Email: [email protected]
Contact Numbers: 1-800-10-PNXFUEL (769-3835), 0917-313-7011.

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5. Total

The French petroleum company, Total entered the country in 1997. It is into importation and marketing refined oil products like gasoline, diesel, lubricants, and many others.  At present, it is the fifth-largest gasoline station chain with 460 stations.
Total offers these two models:

  • Company-Owned/Dealer-Operated (CODO)
  • Dealer-Owned/Dealer-Operated (DODO)

Initial investment: PHP 3.5 million (CODO), PHP 5 million (DODO)
Space requirement: not available
Website: https://totaloil.com.ph/be-partner/become-total-service-station-dealer
Email: [email protected]
Contact Numbers: +63 2 8849-0849

6. Flying-V

An independent Filipino oil company, Flying-V opened its first station in 1997.  TWA, Inc. owns Flying-V. It has 400 stations all over the country, making them the sixth-largest gasoline station chain.

Initial investment: not available
Space requirement: not available
Website: http://flyingv.com.ph/partners/
Email: [email protected]
Contact Numbers: +632 917-5514064

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7. Seaoil Philippines

SEAOIL Philippines is a Filipino-owned oil company. It offers different fuel products and lubricants. It started its operation in 1997. The company has 350 stations nationwide, making them the seventh-largest gasoline station chain.

Initial investment: not available
Space requirement: not available
Website: https://www.seaoil.com.ph/franchising
Email: [email protected]
Contact Numbers: 283971010

8. PTT Philippines

PTT Philippines is a subsidiary of PTT Thailand. It came to the Philippines in 1996. It engages in the marketing of different petroleum products. It has 350 stations at present and ranks eighth largest gasoline station chain.
PTT has two franchise models:

  • Company Owned Dealer Operated (CODO).
  • Dealer Owned Dealer Operated (DODO)

Franchise fee: no franchise fee; only Retail Dealership Agreement
Initial investment: not available
Space requirement: 800 sqm (minimum) with 30 m frontage
Website: https://www.pttphilippines.com/business-opportunity
Email: [email protected]
Contact Numbers: +63(2) 8884-8155

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9. Jetti Petroleum

Another Filipino independent petroleum company, Jetti, started in 1998. It is into importation, blending and marketing of different petroleum products. At present, it is the ninth-largest gasoline station chain with 150 stations nationwide.
Jetti has two franchise models:

  • Company Owned Dealer Operated (CODO).
  • Dealer Owned Dealer Operated (DODO)

Franchise fee: not available
Initial investment: not available
Space requirement: not available
Website: https://jetti.com.ph (under development)
Facebook: https://web.facebook.com/drivewithjetti/
Email: [email protected]
Contact Numbers: (02) 851-0349

10. Unioil

Started in 1966, Unioil has been supplying the Filipinos with lubricants and then different fuel products. Its business involves the importation, blending and marketing of other petroleum products. With 63 stations, it is the tenth-largest gasoline station chain.

Franchise fee: PHP 500,000
Initial investment: minimum PHP3M
Space requirement: not available
Website: www.unioil.com
Email: [email protected]
Contact Numbers: +632 687 8877 loc 276

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Conclusion

The oil industry and automotive industry go together. Both experienced some setbacks last year, 2020, but they picked up once again in the first half of 2021. The sales of vehicles have increased in the first half of this year compared to the same period last year. When they grow, the demand for fuel will also increase.

Despite the pandemic, the demand for fuel is there because people are still buying and driving their vehicles. These vehicles need gasoline stations for power. So, going into a gasoline station franchise is very enticing.

Even when vehicles turn electric, gasoline stations will simply transform into recharging stations.

Think of vehicles without fuel. We need them to deliver essential goods, shuttle workers and transport the sick to the hospital. Without power from the gasoline stations, they can’t.

So, get into a business that fills a need. Consider buying a gasoline station franchise.

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.