The traditional image of a petrol station as a place solely for refuelling vehicles may soon become a thing of the past in South Africa.
Faced with shrinking fuel margins, changing consumer habits and the gradual emergence of electric vehicles (EVs), fuel retailers are increasingly transforming service stations into retail and convenience destinations.
Industry leaders say the shift is no longer optional. As profitability from fuel sales declines, operators are looking to convenience shopping, food services and partnerships with major retailers to secure long-term growth.
According to Fuel Retailers Association (FRA) CEO Reggie Sibiya, fuel remains the largest source of revenue for service stations, but non-fuel retail activities are becoming increasingly important.
“We are seeing strong growth in convenience retailing and in the way fuel stations are being designed and presented to customers,” Sibiya said.
Partnerships with major supermarket chains such as Pick n Pay and Woolworths are already reshaping many forecourts, giving customers access to groceries, ready-made meals and other daily essentials while they stop at service stations.
Convenience shopping becoming a major revenue driver
One of the most notable trends emerging in the sector is the growing number of customers who visit petrol stations without purchasing fuel.
Speaking at the recent Convenience Leaders Exchange conference, hosted in partnership with the global convenience retail association NACS, Sibiya said almost half of all visitors to fuel stations are now there primarily to shop.
According to industry data discussed at the event, approximately 46% of customers visiting forecourts do not buy fuel during their visit.
This trend has encouraged operators to rethink the purpose of service stations. Rather than serving only motorists, stations are increasingly positioning themselves as neighbourhood convenience centres offering food, beverages, household items and additional services.
The transformation mirrors developments seen in international markets where convenience retail often generates a substantial share of service station profits.
Fuel retailers also face growing financial pressure despite rising fuel prices. Contrary to popular belief, higher pump prices do not necessarily increase profits for station operators.
Sibiya noted that retailers earn around six cents per litre in regulated margins, while many operating expenses, including payment processing fees, rise alongside fuel prices.
As a result, increasing fuel costs can actually reduce profitability.
Preparing for a future beyond traditional fuel sales
The industry is also planning for a future in which electric vehicles become more common on South African roads.
Although EV adoption remains relatively low compared with markets in Europe, China and North America, retailers recognise that transportation trends are gradually changing.
Sibiya believes South Africa will likely follow a gradual transition path, with hybrid vehicles becoming more widespread before a significant shift toward fully electric vehicles takes place.
Even so, the sector is already preparing for long-term changes.
Industry leaders expect future service stations to offer a wider range of services, including enhanced food options, digital services, parcel collection points, financial services and eventually EV charging infrastructure.
The objective is to ensure that stations remain relevant and profitable even as reliance on traditional fuel sales declines.
As consumer expectations continue to evolve, South African petrol stations are increasingly becoming destinations in their own right—places where people shop, eat and access everyday services, regardless of whether they need to fill up their tanks.
Source: Fuel Retailers Association (FRA)