As the global push toward cleaner fuels and new energy vehicles (NEVs) gains momentum, South African fuel station operators find themselves at a crossroads of both risk and opportunity. Although NEVs currently make up less than 3% of the local vehicle market, international trends, regulatory developments, and growing consumer demand for greener transport options are driving significant change.
The NEV market is expanding rapidly across the globe. The European Union aims to eliminate internal combustion engine (ICE) vehicles by 2035, shifting its focus toward autonomous and electric mobility. Meanwhile, China dominates the NEV supply chain and has built battery production capacity that surpasses global demand by 500%.
South Africa, however, is trailing behind. The absence of Euro-5 and Euro-6 compliant fuels means that many modern NEVs can’t be legally sold here. With 38% of petrol and 67% of diesel currently imported, the Department of Mineral Resources and Energy has committed to introducing Cleaner Fuel 2 by July 2027—possibly even earlier.
Despite the slow progress, the local NEV market is gradually expanding, primarily led by traditional hybrids such as the Toyota Corolla Cross and the Mercedes-Benz C-Class. Battery electric vehicles (BEVs) remain costly, with most priced above R900,000. This is a major hurdle, especially considering that 74% of new car sales in South Africa fall under the R500,000 mark.
NEV Adoption and Charging Infrastructure: A Growth Opportunity for Fuel Retailers
More affordable BEVs are on the horizon, with at least one manufacturer planning to launch a sub-R400,000 model this year. However, these vehicles face several practical barriers. Many consumers—especially those in lower-income brackets—lack home charging capabilities such as solar systems or battery backups. Even with BEVs offering ranges of over 200 km, range anxiety remains, along with concerns about vehicle resale value and long-term performance.
South Africa’s public charging infrastructure also lags behind. A recent electric vehicle convoy from Johannesburg to Cape Town highlighted this issue, with participants stranded due to faulty or insufficient charging stations.
To tackle these infrastructure challenges, NAAMSA is working with the private sector to develop a national network of 120 charging sites. These will be strategically positioned at existing fuel stations along key routes to ensure reliability, accessibility, and cost-free public use. Partnering with fuel retailers makes sense due to their ideal locations and existing service infrastructure.
To minimise costs and accelerate installation, these sites will primarily draw power from the national grid, supplemented by renewable energy. Fuel stations are well-positioned for solar PV adoption, thanks to their expansive, sun-exposed forecourt and roof space. As charging infrastructure drives additional revenue, site owners can reinvest in renewable systems to reduce their dependence on the grid.
The Rise of ‘Mobility’ Hubs
Fuel retailers are well-placed to lead the transition from traditional fuel stations to multifunctional ‘mobility’ hubs. A study by Cushman & Wakefield | BROLL projects that within the next 5 to 15 years, fuel stations will evolve into energy centres offering a mix of power sources—including electricity, natural gas, biofuels, hydrogen, and conventional fuels.
This is not an entirely new trend. Since the 1960s, fuel stations have integrated value-added services such as restaurants, convenience stores, auto workshops, and even accommodation. However, with NEVs requiring more time to recharge than ICE vehicles need to refuel, these spaces will increasingly offer extended services like pharmacies, gyms, laundry facilities, and co-working areas.
Revenue models will also shift dramatically. Historically, fuel sales contributed up to 90% of forecourt income. In the near future, fuel could represent as little as 20%, as stations diversify their offerings.
Smart Tech and Scale: Keys to Future Success
Looking ahead, successful operators are expected to manage between 5 and 10 sites rather than a single location. With increased scale comes operational complexity—more staff, more systems, and a greater risk of human error. Embracing smart technologies will be essential to streamline operations, prevent fraud, and enhance overall efficiency and profitability.
Original article How SA’s forecourts can capitalise on the clean energy transition | News24
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