The fuel station industry is broadening services in a bid to remain relevant in an increasingly competitive market.
With the decline in fuel margins, retailers are looking at adding new products and services to provide more convenience for customers. BP has started providing car licence disc renewals and is partnering with more quick service restaurants.
According to the latest Forecourt Retail Report 2025/2026, forecourt stores are becoming credible retail destinations, with 46% of shoppers purchasing items other than fuel. It says one in five consumers now see them as a destination rather than a stopgap, especially younger, late-night and township consumers.
However, there is increasing competition from supermarkets, quick-service restaurants and delivery platforms.
“To remain competitive, forecourt operators are increasingly investing in partnerships, food services and customer experience,” said Nicola Allen, forecourt analyst at Trade Intelligence.
“Collaborations with major retailers and quick-service restaurant brands are expanding while food offerings, from barista coffee to hot meals, are becoming central to driving footfall and profitability,” Allen said.
Strategic merchandising, value-added services and loyalty programmes are playing an increasingly important role in attracting and retaining customers.
“Every square metre of the forecourt is now an opportunity for attention,” Allen said, adding that “operators need to deliver a compelling, differentiated experience that is right for their specific catchment area and target market.”
According to the report, forecourt convenience stores across the country generated R40bn in sales in 2024, up 4% from the previous year, contributing 15% to South Africa’s fast-moving consumer goods (FMCG) primary convenience channel.
“Forecourt stores are no longer just an add-on to fuel —they are becoming a central pillar of the business. For many operators, they represent the most viable path to sustained growth,” said Allen.
Though fuel will remain a key revenue driver in the short term, its contribution is expected to decline as convenience retail and alternative energy gain importance, shifting forecourts towards integrated mobility hubs.
“The forecourt of the future will be defined by diversification,” said Karen Keylock, national retail franchising manager at Nedbank Commercial Banking.
“As fuel volumes come under pressure, growth in convenience retail, strategic partnerships and technology are creating new pathways to sustainable profitability. From a funding perspective, operators who adapt, diversify and differentiate will be best positioned for long-term success.”
Nedbank economist Crystal Huntley said while South Africa’s economy is showing early signs of recovery, supported by easing inflation, lower interest rates and improvements in electricity supply, rail performance and port efficiency, geopolitical instability is a major threat. Petrol and diesel prices are expected to rise sharply driven by flow disruptions in the Strait of Hormuz — which carries roughly 20% of global oil supply.
“Domestic conditions are improving, and consumer activity is recovering, but global risks, particularly oil, continue to pose a major threat to stability,” she said.
Huntley said forecourt operators should plan for volatility, as price shocks, demand fluctuations and cautious consumer spending will shape the market.
“Even with some recovery, consumers remain highly price-sensitive, and margins will stay tight. Growth will need to come from diversification and operational efficiency,” she added.
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