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How to Franchise: Shell Gas Station in the Philippines

Fuel is one of the essential commodities of our times. With the increase in vehicle production and demand nowadays, it’s a great opportunity to grab the chance of starting up an oil business in the country.

One of the trusted names to consider in the oil industry is Shell. Know more if franchising this gas station is the suitable business path for you.

About Pilipinas Shell

Since 1897, Shell Philippines has been distributing kerosene in our country. By 1940, it has grown extensively that its other products were being sold with the installations and depots situated in different strategic locations nationwide.

In the 1960s, its first crude refinery was built in Batangas making Shell an established player as a manufacturer and refiner of petroleum products. 1986 was the year when Pilipinas Shell acquired the majority of the Philippine Petroleum Company, the only lube refinery in the country.

Fast forward today, Shell opened its 1,000th retail station along Eton Road in Sta. Rosa, Laguna.

Franchise Package Inclusions

Pilipinas Shell’s franchises may be company-owned or dealer-owned. Whether you’ll choose a company-owned or dealer-owned franchise, the franchise includes:

  • Shell Brand and other trademarks
  • Location and market study
  • Layout and fitting out of service station
  • Building and equipment
  • Operating standards
  • Training for retailer and staff
  • Procurement programs
  • Pre-opening assistance
  • Grand opening assistance
  • Marketing strategies
  • Research and development
  • Business counseling

Franchise Fees

Now this is where it gets interesting. What’s unique with the Shell franchise is that it actually doesn’t charge a franchise fee.

You heard it right, there is no franchise fee. However, you’ll have to pay the following fees to acquire and operate a Shell dealership:

  1. Processing fee
  2. Monthly royalty fee
  3. Retailer fee

Be prepared with an initial investment cost of P3 Million to P5 Million, and other fees agreed on the business plan.

This initial cost will cover fuels inventory (2-3 day stock cover), lubricants inventory (1 month stock cover), merchandise in the Shell Shop/Select, lube/wash-bay equipment, initial operating expense (salaries, utilities, uniforms, business permit, and others), and power generator.

For the convenience store and automotive shop, these are applied separately from the franchise.

Basic Qualifications for a Franchisee

A franchise is awarded initially only to individuals.

Once the franchise application is approved, the individual may then organize a “closed corporation” provided that he or she can prove that he/she owns majority share of the corporation.

Other “pre-screening checklist” required by Pilipinas Shell include these qualifying criteria:

  • Can motivate his or her people towards agreed business targets
  • Willing to devote time to oversee day-to-day operations of the business
  • Willing to undergo full time training on service station operations
  • Able to fund the investment requirements

Earnings and Return on Investment (ROI)

A 3-year Retailer Agreement will be signed by the franchisee (retailer/dealer) with Shell and its renewal will be based on the business performance.

The average payback period is around 2-3 years, with the Return On Investment (ROI) expected to be 30%-40%.

Shell Franchising Contact Details

Interested to be a Shell franchisee / dealer / retailer? Send your application or contact the company directly for more details:

Ms. Michelle Ledesma

Email Address:

Telephone Number: (02) 8166501

Want to see other franchising offers? Check out: Complete list of Philippine companies available for Franchising

Information and Image Sources: iFranchise Philippines, Negosyo Builder, Yahoo Answers, Franchise Business Philippines, Official Company Website,

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5 thoughts on “How to Franchise: Shell Gas Station in the Philippines”

  1. Elpidio M. Junio says:

    Gud day Mam, is the location provided? am from Bacoor, Cavite and prefer location of my gas station if approve are Imus and Bacoor, Cav, thank you and hope for you reply at your earliest possible time.

  2. Miller albacaro says:

    Maam, gud day po..ang 3-5M po ay kasali sa lot nd construction.Balak ko po mgpapatayo ng gasoline station sa bikol, goa, camarines sur..

  3. Nudzha says:

    Good day! Ma’am,My family is interested to put shell gasoline station in our municipal and would like to invest as a dealer. May I know if meron po kayong “bulilit gasoline” like petron? Or may choices ba ng laki? If meron po what is the required laki ng lot? Yung 3M to 5M kasali naba dun ung constructions?

    Hoping for your fast response. God bless!

  4. Juvy paza says:

    Hi this is from City hall Employees Multi Purpose Cooperative (CHEMCO) of Cagayan de Oro city our total assets is 230M we are interested engaging in shell gasoline station.

    Hope to hear from u soon.

    Juvy B. Paza
    Vice Chair
    Business and Investment Committee

  5. Editha T. Lising says:

    Sir/Maam Good day! 3-5M po ay kasali Nba construction and fuel pump.Balak ko po mgpapatayo ng gasoline station sa Pampanga. My lot size is 2,000sqm.

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