PetroStation SA — Appendices
Understanding the South African fuel price structure is essential for assessing the dealer margin economics that underpin PetroStation SA's financial model. The pump price of petrol in South Africa is composed of the following regulated components:
Section 14 · Business Plan
Appendices
Understanding the South African fuel price structure is essential for assessing the dealer margin economics that underpin PetroStation SA's financial model. The pump price of petrol in South Africa is composed of the following regulated components:
14.1 Appendix A: Monthly Revenue Projection (Year 1)
| Month | Fuel Vol (KL) | Fuel Rev | Non-Fuel Rev | Total Rev | Cum. Rev |
|---|---|---|---|---|---|
| M1 | 180 | R 2,484,000 | R 400,000 | R 2,884,000 | R 2,884,000 |
| M2 | 200 | R 2,760,000 | R 480,000 | R 3,240,000 | R 6,124,000 |
| M3 | 220 | R 3,036,000 | R 540,000 | R 3,576,000 | R 9,700,000 |
| M4 | 240 | R 3,312,000 | R 600,000 | R 3,912,000 | R 13,612,000 |
| M5 | 260 | R 3,588,000 | R 650,000 | R 4,238,000 | R 17,850,000 |
| M6 | 270 | R 3,726,000 | R 680,000 | R 4,406,000 | R 22,256,000 |
| M7 | 280 | R 3,864,000 | R 700,000 | R 4,564,000 | R 26,820,000 |
| M8 | 290 | R 4,002,000 | R 720,000 | R 4,722,000 | R 31,542,000 |
| M9 | 300 | R 4,140,000 | R 740,000 | R 4,880,000 | R 36,422,000 |
| M10 | 310 | R 4,278,000 | R 760,000 | R 5,038,000 | R 41,460,000 |
| M11 | 320 | R 4,416,000 | R 780,000 | R 5,196,000 | R 46,656,000 |
| M12 | 340 | R 4,692,000 | R 870,000 | R 5,562,000 | R 52,218,000 |
14.2 Appendix B: Equipment and Infrastructure Schedule
| Item | Qty | Unit Cost | Total | Useful Life |
|---|---|---|---|---|
| Underground Storage Tanks (46KL) | 3 | R 550,000 | R 1,650,000 | 25 years |
| Underground Storage Tank (23KL) | 1 | R 350,000 | R 350,000 | 25 years |
| Fuel Dispensers (Multi-product) | 8 | R 180,000 | R 1,440,000 | 10 years |
| High-flow Diesel Dispenser | 1 | R 250,000 | R 250,000 | 10 years |
| Automated Tank Gauging System | 1 | R 380,000 | R 380,000 | 10 years |
| Forecourt Canopy (Steel, 12x18m) | 1 | R 850,000 | R 850,000 | 20 years |
| Signage Package (Pylon + Fascia) | 1 | R 350,000 | R 350,000 | 10 years |
| POS System (Gilbarco/Tokheim) | 4 | R 65,000 | R 260,000 | 7 years |
| CCTV System (16 cameras + NVR) | 1 | R 120,000 | R 120,000 | 5 years |
| Automated Car Wash System | 1 | R 680,000 | R 680,000 | 10 years |
| Convenience Store Fit-out | 1 | R 850,000 | R 850,000 | 10 years |
| Walk-in Cooler / Freezer | 2 | R 95,000 | R 190,000 | 10 years |
| Generator (Backup Power, 100kVA) | 1 | R 320,000 | R 320,000 | 15 years |
| Air/Water Station | 1 | R 45,000 | R 45,000 | 10 years |
| Fire Suppression System | 1 | R 180,000 | R 180,000 | 15 years |
| TOTAL | R 7,915,000 |
14.3 Appendix C: Regulatory Checklist
| Requirement | Authority | Timeline | Status |
|---|---|---|---|
| Company Registration (CIPC) | CIPC | 2-4 weeks | Pending |
| Tax Registration (SARS) | SARS | 2-4 weeks | Pending |
| Petroleum Products Licence | DMRE | 6-12 months | Pending |
| Environmental Impact Assessment | DEA / Provincial | 4-8 months | Pending |
| Municipal Land Use Approval | Local Municipality | 3-6 months | Pending |
| Building Plans Approval | Local Municipality | 4-8 weeks | Pending |
| Fire Safety Certificate | Fire Department | 2-4 weeks | Pending |
| Occupancy Certificate | Local Municipality | 2-4 weeks | Pending |
| Trade Licence | Local Municipality | 2-4 weeks | Pending |
| Liquor Licence (if applicable) | Provincial Board | 3-6 months | To be assessed |
| MIBCO Registration | MIBCO | 2 weeks | Pending |
| B-BBEE Verification | Accredited Agency | 4-6 weeks | Pending |
14.4 Appendix D: Glossary of Terms
| Term | Definition |
|---|---|
| ATG | Automated Tank Gauging – electronic system for monitoring fuel tank levels |
| B-BBEE | Broad-Based Black Economic Empowerment |
| BFP | Basic Fuel Price – the import parity component of the regulated fuel price |
| DMRE | Department of Mineral Resources and Energy |
| DSCR | Debt Service Coverage Ratio |
| EIA | Environmental Impact Assessment |
| EV | Electric Vehicle |
| FIASA | Fuels Industry Association of South Africa |
| IDC | Industrial Development Corporation |
| KL | Kilolitres (1,000 litres) |
| MIBCO | Motor Industry Bargaining Council |
| NEF | National Empowerment Fund |
| NEMA | National Environmental Management Act |
| QSR | Quick-Service Restaurant |
| SANS | South African National Standards |
| UST | Underground Storage Tank |
14.5 Appendix E: Fuel Price Structure Breakdown
Understanding the South African fuel price structure is essential for assessing the dealer margin economics that underpin PetroStation SA’s financial model. The pump price of petrol in South Africa is composed of the following regulated components:
| Component | Approx. Value (c/L) | % of Pump Price | Description |
|---|---|---|---|
| Basic Fuel Price (BFP) | ~950-1100 | ~45-50% | Import parity cost based on international crude and refined product prices |
| General Fuel Levy | ~399 | ~17% | Tax collected for National Revenue Fund |
| RAF Levy | ~218 | ~10% | Road Accident Fund contribution per litre |
| Customs and Excise | ~4 | ~0.2% | Customs duty on imported fuel |
| Slate Levy | Variable | Variable | Mechanism to smooth under/over-recovery between monthly adjustments |
| Wholesale Margin | ~34 | ~1.5% | Fixed margin for oil company wholesale operations |
| Secondary Storage | ~28 | ~1.2% | Cost of product storage at inland depots |
| Delivery Cost | ~42 | ~1.8% | Transport from depot to service station |
| Retail Margin | ~305.6 | ~13% | Dealer margin covering all forecourt operational costs plus profit |
| TOTAL PUMP PRICE | ~2,200-2,400 | 100% | Sum of all components (varies monthly) |
Table 14.5: Indicative Fuel Price Structure (Inland Zone)
The retail margin of approximately 305.6 cents per litre represents the gross income available to the station operator from each litre of petrol sold. From this margin, the operator must cover all forecourt operating costs including staff, utilities, rent, maintenance, insurance, and entrepreneurial compensation. The margin was last adjusted in October 2025 by 6.1 cents per litre following the MIBCO Sector 5 wage settlement. Diesel margins are unregulated, providing somewhat greater flexibility, though competitive pressures effectively cap the achievable margin.
14.6 Appendix F: Convenience Store Category Plan
The convenience store is the primary driver of non-fuel margin and represents the most strategically important element of PetroStation SA’s revenue diversification strategy. The following category plan outlines the product mix, space allocation, and margin targets:
| Category | SKU Count | Space (%) | Target Margin | Key Products |
|---|---|---|---|---|
| Hot Beverages (Coffee, Tea) | 15-20 | 8% | 65-75% | Self-service coffee station, specialty blends, hot chocolate |
| Cold Beverages | 80-100 | 18% | 30-40% | Soft drinks, energy drinks, water, juices, iced coffee |
| Snacks and Confectionery | 120-150 | 15% | 35-45% | Chips, chocolates, sweets, biscuits, nuts, biltong |
| Prepared Food (Hot) | 15-25 | 12% | 50-60% | Pies, sausage rolls, toasted sandwiches, bunny chow |
| Prepared Food (Cold) | 20-30 | 10% | 45-55% | Sandwiches, wraps, salads, fruit cups |
| Bread and Bakery | 15-20 | 5% | 25-35% | Bread, rolls, muffins, rusks |
| Dairy and Chilled | 30-40 | 8% | 20-30% | Milk, yoghurt, cheese, deli meats |
| Grocery Essentials | 60-80 | 10% | 20-30% | Sugar, rice, tinned goods, cooking oil, condiments |
| Personal Care | 30-40 | 5% | 30-40% | Toiletries, hygiene products, OTC medicines |
| Tobacco Products | 20-30 | 3% | 10-15% | Cigarettes, cigars, vaping products |
| Ice Cream and Frozen | 20-30 | 4% | 35-45% | Ice cream bars, frozen treats |
| Automotive Products | 15-20 | 2% | 25-35% | Engine oil, coolant, screen wash, air fresheners |
| TOTAL | ~500-600 | 100% | 35% avg | Curated range focused on impulse and convenience |
Table 14.6: Convenience Store Category Plan
The self-service coffee station is the single highest-margin category and a proven traffic driver at leading fuel forecourts. Brands such as Seattle Coffee Company (at Shell stations) and Mugg and Bean On The Move have demonstrated that premium coffee drives incremental visits and cross-selling. PetroStation SA will partner with a reputable coffee brand to offer quality coffee at R25 to R45 per cup, with projected sales of 80 to 120 cups per day at steady state.
14.7 Appendix G: Insurance Programme
A comprehensive insurance programme is essential for a fuel service station given the inherent risks associated with storing and dispensing flammable liquids, operating mechanical equipment, and serving the public 24 hours a day. PetroStation SA will maintain the following insurance coverage:
| Policy | Cover | Estimated Premium (Annual) | Key Provisions |
|---|---|---|---|
| Material Damage | R 18,500,000 | R 185,000 | Buildings, equipment, stock; fire, explosion, storm, flood, malicious damage |
| Business Interruption | 12 months indemnity | R 95,000 | Loss of revenue following insured event; includes extended indemnity |
| Public Liability | R 20,000,000 | R 48,000 | Third-party bodily injury and property damage; essential for forecourt operations |
| Environmental Liability | R 10,000,000 | R 75,000 | Pollution cleanup costs, groundwater remediation, third-party environmental claims |
| Motor Vehicle (Company) | Market value per vehicle | R 25,000 | Company vehicles used for deliveries or management |
| Theft and Fidelity | R 500,000 | R 18,000 | Employee dishonesty, stock theft, cash in transit |
| Employers Liability | Statutory | R 12,000 | Workers compensation and occupational injuries |
| Electronic Equipment | Replacement value | R 15,000 | POS systems, CCTV, ATG system, car wash electronics |
| TOTAL | R 473,000 | Comprehensive programme with reputable insurer |
Table 14.7: Insurance Programme Summary
Environmental liability insurance is particularly important for fuel stations, as contamination from underground tank leaks can result in remediation costs running into millions of Rands. PetroStation SA’s use of modern double-skinned tanks with interstitial leak detection significantly reduces the risk of contamination, but insurance remains essential as a backstop.
14.8 Appendix H: Assumptions and Methodology Notes
Fuel Volume Assumptions: Year 1 throughput is modelled on a gradual ramp-up from 180 KL/month in Month 1 to 340 KL/month by Month 12, averaging 280 KL/month for the year. This ramp-up profile is consistent with industry experience for new-build stations in urban Gauteng locations. The Year 1 average is deliberately positioned below the viability threshold of 300 KL/month cited by the Fuel Retailers Association, recognising the establishment period required to build customer awareness and loyalty.
Fuel Margin Assumptions: The retail margin on petrol is assumed at 305.6 cents per litre, reflecting the October 2025 MIBCO adjustment. The margin on diesel is unregulated and is assumed at a weighted average of approximately 280-320 cents per litre depending on competitive conditions and fleet contract pricing. An annual escalation of approximately 5 cents per litre has been assumed, consistent with the historical pattern of MIBCO-linked margin increases.
Non-Fuel Revenue Assumptions: Convenience store revenue is projected at R400,000 in Month 1, growing to R870,000 by Month 12 as the store builds its customer base and refines its product mix. Car wash revenue assumes an average of 30 washes per day at a blended price of R85 (Year 1), growing to 55 washes per day by Year 5. Quick-service food revenue is projected conservatively at R8,000 per day by Year 2.
Operating Cost Assumptions: Staff costs incorporate the MIBCO Sector 5 wage determination with an annual escalation of 6% for hourly-rated employees. Electricity costs assume a 100kW average demand at municipal tariff rates with an annual escalation of 8% (reflecting historical municipal electricity price increases). Rent or lease costs assume an annual escalation of 7%, consistent with standard commercial property escalation clauses in Gauteng. Maintenance and repairs are budgeted at 2% of equipment replacement value, increasing to 3% from Year 3 as equipment ages.
Tax Assumptions: Corporate income tax is assumed at 27% throughout the projection period. Accumulated tax losses from Years 1-4 are carried forward and offset against taxable income from Year 5 onward. VAT is excluded from all revenue and cost figures as PetroStation SA will be a registered VAT vendor.
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PetroStation SA (Pty) Ltd
Prepared April 2026 | Confidential
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