How to Franchise: Petron Gas and Service Station
With constantly rising prices of oil and gas, sometimes you’re tempted to own your own station so that you’ll feel like you have easy access to gas. You can actually do it, but only if you have cash and the passion to run a business!
If you’re interested to own a Petron Gas Station franchise, continue reading below.
Petron Corporation is the largest oil refining and marketing company in the Philippines, supplying nearly 40% of the country’s oil requirements.
Petron operates an integrated crude oil refinery and petrochemicals complex with a rated capacity of 180,000 barrels per day in Limay, Bataan. Their Integrated Management System (IMS)-certified refinery processes crude oil into a full range of petroleum products including gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene, industrial fuel oil, and petrochemical feedstock benzene, toluene, mixed xylene, and propylene.
From the refinery, products are moved via barges and marine vessels to 32 International Organization of Standardization (ISO)-certified depots and terminals situated all over the country. Through this vast distribution network, the company supplies fuel oil, diesel, and LPG to various industrial customers. Petron also supplies jet fuel at key airports for international and domestic carriers.
Petron is the local refinery with the largest retail network, having more than 1,900 service stations all around the Philippines.
Franchise Selection Criteria
Petron requires prospective dealers to possess certain traits and level of experience before they are approved to run a Petron franchise. Specifically, these eligibility criteria require franchisees to:
1. Meet capitalization required for a given dealership (franchise investment could range from P1 Million to P9 Million depending on the type of station available;
2. Dedicate most of his or her time in running the station;
3. Be dynamic and possess aggressiveness and desire not just to operate a service station business but to be the number one in the trading area;
4. Be perceptive to new ideas and suggestions, pleasing in personality, and have good moral character that will assure the company of loyalty;
5. Be willing to undergo a four-week Dealer Management course;
6. Have no past record of criminal case; and
7. Not be operating any existing Petron station or that of any other oil company
Franchise Fee and Types of Dealership
Petron station dealers sign a dealership contract covering a minimum period of three (3) years. The contract is renewable for additional three-year periods based on the performance of the dealer. Petron offers 3 dealership options:
These are stations built, equipped and maintained by the company on either company-owned or leased lots. They usually have complete station facilities such as driveway, salesroom, service bays and convenience facilitates.
The COSS dealer provides the franchise investment capital which ranges from P4 Million to P9 Million depending on the size and array of services offered by the station. This covers among others stocks, tools and equipment like lubricators, wheel balancers, wheel aligner and for granting credit, accommodations. The dealer also pays a monthly rental for the service station facilities.
2. Dealer Owned Service Stations (DOSS)
These are service stations built and financed by the dealer who is usually the owner of the lot. The company provides the major equipment like underground tanks, dispensing pumps, lifters and compressors which in themselves constitute a major investment.
DOSS are generally smaller outlets limited to filling activities as those found in small towns and fishing villages. However, there is also a number of large DOSS in urban areas.
3. Petron Bulilit or Micro Filling Stations (MFS)
These are service stations built and designed to cater to the fuel demands of areas with untapped fuel demand. Cost of investment is minimal as the company shoulders the cost of equipment and signage, while the dealer invests in the cost of the station’s construction. MFS outlets are smaller outlets generating an average of 80 to 40 thousand liters a month.
Detailed information about the Petron Bulilit franchise can be found here.
Franchise Application Steps
1. Get to know the service station business by reading the Primer on Petron Dealership Program.
2. Accomplish the Dealer Application Form which consists of three parts:
Part I. Dealer Application
Part II. Financial and Personal Statement
Part III. Business Plan
3. The initial screening will be based on the content of the application. Take time to fill out the required date and information. Do not leave blank spaces. Put “NA” in the blank if information sought is not applicable to your case.
4. Submit your application to the offices / contact details below.
5. Applicant will be informed in writing, or thru a call, of the status of his/her application after the preliminary screening phase.
6. Petron shall only process applications forms duly filled-up and with complete attachments. There is no need to follow-up applications as all applicants shall be informed of their status.
Franchising Contact Details
For Luzon Applicants:
Network Expansion Group – Luzon Reseller
Mailing Address: Ground Floor, San Miguel Corp. (SMC) Head Office Complex, 40 San Miguel Avenue, Mandaluyong City 1150
Tel. No.: (02) 884-9251
For Visayas and Mindanao Applicants:
Network Expansion Group – VisMin Reseller
Mailing Address: Petron Corp. Mandaue Terminal, Looc, Mandaue City
Tel. No.: (32) 3447341 to 44 loc. 50158
Interested in other franchise opportunities? See our Complete list of Philippine companies available for Franchising
Information and Image Source: Petron Official Company Website
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