Do you want to own and manage your own gas station?
If you have the time, money, and skills needed to run a gas station, then you might be interested to venture into the franchising business offered by top oil and petroleum companies in the Philippines, such as Petron, Shell, Caltex, Phoenix Petroleum, Seaoil, and Eastern Petroleum!
Detailed franchising information below.
1. Petron Gas Station Franchise
Petron Corporation is the biggest oil refinery company in the Philippines, supplying around 40% of the country’s total oil requirements. Prospective franchisees may choose from three franchise dealership options:
- Company-Owned Service Stations (COSS) – stations built, equipped, and maintained by Petron on either company-owned or leased lots with complete station facilities. The COSS franchise fee investment is around P4 Million to P9 Million depending on the size and variety of services offered.
- Dealer-Owned Service Stations (DOSS) – service stations built and financed by the franchisee/dealer who is typically also the owner of the lot where the station will be built. DOSS are generally smaller outlets limited to filling services. Petron has not announced how much the franchise fee is but if you’re interested, contact them to inquire.
- Petron Bulilit Stations – service stations built and designed to cater to the fuel demands of areas with limited access to fuel supply. These outlets typically process an average of 80 to 40 thousand liters of fuel per month. Petron shoulders the cost of equipment and signage, while the dealer is the one in charge of gas station construction. The actual franchise investment cost will be available to interested dealers upon contacting Petron.
For more detailed information about each Petron franchise, see our articles:
2. Pilipinas Shell Franchise
Shell has been operating in the Philippines since 1897, initially distributing kerosene in the country. In the 1960s, it established its own crude refinery in Batangas paving the way for Shell to be an established player in the oil refinery business in the Philippines.
Shell gas stations may be franchised as either Company-owned or Dealer-owned. How about the franchise fee? Interestingly, there is NO franchise fee that needs to be paid in order to operate your own Shell gas station franchise.
However, be prepared to shell out an initial franchise investment of around P3 Million to P5 Million to cover the Processing fee, Royalty fee, Retailer fee, and other startup fees.
Take note that the Shell Select and Deli2Go convenience store options and the Shell automotive shop are applied separately from the gas station.
For more detailed information about the Shell franchise, check out How to Franchise: Shell Gas Station in the Philippines
3. Caltex Gas Station Franchise
Caltex is owned by Chevron Corporation, one of the world’s largest oil and petroleum companies. Caltex built its first oil refinery in Batangas in 1954 and the refiner is currently able to store around 2.7 million barrels of oil.
Just like Pilipinas Shell, Caltex also does not charge a Franchise Fee. However, Caltex station dealers are expected to shell out around P5 million as initial investment in order to start operating their Caltex dealership.
Caltex dealers retain complete ownership of the land and the business operations. They are also free to partner with Caltex’s existing pool of restaurants and stores if they want to co-locate other retailers in their gas station. The Caltex franchise agreement initially lasts for 5 years, but is renewable for another 5 years under agreed terms and conditions.
For more detailed information about the Caltex franchise, check out How to Franchise: Caltex Gas Station in the Philippines
4. Phoenix Petroleum Franchise
Phoenix Petroleum started in Davao in 2005 and has since expanded to a network of hundreds of stations nationwide. From then until today, it has been the exclusive logistics partner of low-cost carrier Cebu Pacific in all CEB flights in Mindanao.
Prospective dealers may choose from either two Phoenix Petroleum franchising options:
- Company-Owned, Dealer-Operated (CODO) – the franchise investment required is between P2.5 million and P5.0 million. For CODO stations, Phoenix will be the one in charge of the necessary permits.
- Dealer Owned, Dealer Operated (DODO) – the DODO franchise fee is P4 million to P5 million, inclusive of the brand reimbursement fee, equipment, and initial stock. DODO franchisees are in charge of securing necessary permits.
Check out more details about the Phoenix Petroleum franchise in our article How to Franchise: Phoenix Petroleum Gas Station
5. Total Gas Station Franchise
Total Philippines is another recognized name in the oil industry in the country, operating for more than 20 years now. Total offers two dealership types:
- Company Owned-Dealer Operated (CODO) – TOTAL retains ownership of the station, with the dealer being appointed as manager and dealer of the gas station. The minimum franchise investment required is P3.5 million working capital.
- Dealer Owned-Dealer Operated (DODO) – franchisee co-invests with TOTAL for the construction and development of the gas station. Minimum franchise investment is around P5 million for construction, with additional P2.5 million required as working capital.
The CODO franchise contract is valid for a period of three (3) years, renewable for another three (3) years upon mutual agreement. The DODO lease contract, meanwhile, is valid for a minimum of ten (10) years.
For more detailed information about the Total gas station franchise, head over to the article How to Franchise: Total Gas Station
6. Seaoil Gas Station Franchise
SEAOIL started in 1997 with only one station but it has since expanded nationwide, with a network of more than 350 stations all over the Philippines.
The SEAOIL franchise fee is P500,000 but this is not the only cost that franchisees will have to shell out. The total investment needed to initially operate a SEAOIL franchise station is expected to be P2 million to P8 million.
Franchisees also have to pay a royalty fee of 2% of the total monthly gross sales. The SEAOIL franchise duration is 5 years, renewable subject to mutual agreement between SEAOIL and the franchisee.
Do you want to learn more about franchising SEAOIL? Read our article How to Franchise: SEAOIL Gas Station
7. Eastern Petroleum Franchise
Eastern Petroleum is one of the smaller, independent oil retailer in the country with a current network of over 36 branches all over the Philippines. It is supported by a depot that has a 5 million liter oil capacity.
Just like other gas station franchises, Eastern Petroleum offers two franchising options: (1) Company Owned, Dealer Operated (CODO); and (2) Dealer Owned, Dealer Operated (DODO).
The franchise fee for an Eastern Petroleum gas station is P250,000. However, there are additional costs depending on the size of the station, and the total investment could reach:
- P2,000,000 for a Basic Station (1 or 2 islands and 2 pumps)
- P5,000,000 for a Regular Station (2 islands and 3-4 pumps)
- P8,000,000 for a Large Station (3 islands and at least 5 pumps)
According to the company, the payback period is expected to be 40-60 months.
Interested in other franchising opportunities? See our Complete list of Philippine companies available for Franchising
Information and Image Sources: Official Company Websites of Petron, Shell, Caltex, Seaoil, TOTAL, Eastern Petroleum, and Phoenix Petroleum