Diversification through licensing, battery and supermarket partnerships seen as a way to counter the tough margins on fuel and slow rollout of electric vehicles in South Africa
Forecourts must rethink their role 'beyond fuel' and focus on strategic partnerships and convenience retail. South Africa’s fuel forecourt sector is set to evolve, but perhaps not in the way many might expect.
New research challenges suggestions that electric vehicle (EV) charging facilities will soon replace petrol and diesel sales at service stations.
Nedbank economist Crystal Huntley says domestic and global factors are reshaping the fuel and retail landscape, with geopolitical tensions around the Strait of Hormuz pushing oil prices higher and reintroducing inflationary pressures.
“Domestic conditions are improving, and consumer activity is recovering, but global risks, particularly oil, continue to pose a major threat to stability.” She says fuel consumption in SA declined by 6.3% in 2024, highlighting structural shifts in demand.
She advises forecourt operators to plan for volatility as price shocks, demand fluctuations, and cautious consumer spending will shape the market. “Even with some recovery, consumers remain highly price-sensitive, and margins will stay tight.
“Growth will need to come from diversification and operational efficiency,” says Huntley.
Full story SA’s fuel forecourts evolving into ‘lifestyle’ destinations? - Moneyweb
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