“How to Start a Gas Station?”
Comment Page 5

@vevs. underground fuel tanks (UGT), pumps (with dispensers and other equipment are usually provided by companies the likes of Shell, Petron, Caltex, PTT, Seaoil, Total and other branded petroleum companies. You are however required to enter into a franchise agreement with a bond of at least 20-50 million pesos which covers the construction of the service station which could cost you an initial investment of 50 million pesos.

@Chandrashekhar, you can get a general idea on Shell India gas stations from here. You can also contact the company from their website. Funds required to start a gas station will depend on location and type of agreement you do for the land acquisition.

Syed, you need to prepare a feasibility study first and possibly a business plan for your business. this will help you assess the viability of your planned endeavor and the location where you would have it built. I suggest that you go to your city business registration and register a business/trade name for yourself. they usually have business name registration form which they would ask you to fill up and you also have to submit personal documents like valid identification card or residence certificate. Then you need to get environmental clearance from the city engineering's office in order that they will give you the building permit so that you can have your contractor build the gas station for you.

If you plan to franchise branded petroleum products the likes of BP, Shell or Chevron (Caltex), i suggest that you contact their franchise department or marketing department to obtain information in executing Franchise Agreement. But if you want to have a generic gas station, you need to source out petroleum traders/suppliers near your place. Good Luck.

@LYNA. At age 60, i would say that it is no longer physically tenable for you to personally take the helm of establishing and managing a petrol/service station. I therefore suggest that you task your son to undertake the operations of the business whereas you can settle yourself with the treasury/finance management. First thing first, your son needs to go to the Office of Business Registration/Licensing of your City Government in order to register a business name and obtain license. There would be paperworks to attend to and payment of certain processing fees. If you intend to franchise branded products like BP, Shell, Caltex (Chevron), then your son needs to make representation with the marketing/franchising department of either of the foregoing petroleum companies and enter into a Franchise Agreement. Details of which shall be discussed thoroughly by the petroleum company's representative. IT shall touch on the amount of bond and the cost for the construction of the service station, the underground fuel tanks (ugt), dispensers, pos and other equipment/materials. But if you choose to run a generic petrol station, then your son needs to scout or outsource fuel products from importers/traders within your area. Stress in establishing any business undertaking comes not in the various activities associated thereto but more on the absence or dearth of pragmatic information. When you have establish the petrol station, the only pressing need is to make sure that you meet your quota sale per litter every month as what the petroleum company would stipulate in the Franchise Agreement. In all fours, it is important that you have a feasibility study and business plan for the foregoing. Good luck Madam.

@Raymond Mokotedi. Franchise Agreement shall not be made readily available to you by petroleum companies, specially international brands the likes of BP, Shell, Chevron and Union. First, you need to make a letter of intent to their marketing/franchising manager expressing your desire to put up a service station. You will be required to submit pertinent business permits and other personal documentations such as bank accounts certificates for assessment. It is only then that they will entertain you as you will be asked to visit their office personally for a business meeting to discuss relevant matters. Good luck.

expenses for establishing service stations cannot be determined in a straight-jacket manner. first and foremost, you should put up your own business name or register for a business license, the cost of which depends on the charge/service fees rate of your city or municipal business licensing office. second, you have to discuss matters with the franchise/marketing department of the petroleum company that you choose to make business with. they will ask you to post bond which would cover the initial delivery of the products, pos, dispenser and other materials. the petroleum company shall stipulate in the Franchise Agreement your monthly quota of gallons and other relative responsibilities. so you need to read, understand and study the Franchise Agreement. You also need to keep yourself abreast with the Health, Environment, Safety and Security standards in the petroleum industry. third, the price per litter shall be determined along with your markup in cents or dollars, as the case may be. in coming up with your business plan, you should first make a feasibility study by taking into consideration the traffic volume. you need to make a tentative calculation of your monthly sales multiply with twelve (12) months then multiplied with three (3) years in order to have a good idea if only to have an idea of business development within three (3) years from operation. Good luck.

@ Edwin M., Vettri Velan, Marjane G., Chaaif M., and Patreciah K. Guys, as starter, you need to register a business name and obtain business permit from your local government and/or agency which has jurisdiction to issue the same. Then come up with a feasibility study with the following suggested features:
EXECUTIVE SUMMARY
INDUSTRY DESCRIPTION
THE PROJECT
THE SIRE
COMMUNITY PROFILE AND BUSINESS CLIMATE
TRANSPORTATION AND ATTRACTION IN THE AREA
MARKETING STRATEGY
FINANCIAL ASPECT
FINDINGS AND RECOMMENDATIONS

after coming up with the foregoing, you should be able to come up with a business plan that covers atleast three (3) years of business operation. the foregoing feasibility study would enable you to determine if the venture is financially pragmatic. whereas, the business plan would give your venture its projected path. both of which shall be taken in consideration by the bank/s before it/they could lend you a personal or business loan. such feasibility study and business plan would also give confidence to your suppliers/franchise to consider signing a supply contract or franchise agreement with you.

the best way to find suppliers/franchisee is to scout from within your region or adjacent to it, this will make logistics easier and economical. but if you are to enter into a franchise agreement with multinational petroleum companies (chevron, shell, or bp) then you should contact their marketing, franchise or business development department. check out the business section of the phonelist in your area/country. Goodluck guys.

Depending on the prevailing standards/laws/ordinance of state, county or town on safety and security, surface fuel tanks can be installed so long as you meet applicable standards such as the location thereof relative to the surrounding areas or the service station itself.

It is therefore pragmatic that you inquire with the town's business licensing office or engineering office of their approved standards before you decide to install one. The size of which would depend on how much liters of fuel you are allowed to sustain at a given time or as may be allowed by your quota if you are in a franchise agreement. Good luck

You need to have a registered business name for which you need to apply with your local government's business permit and licensing office. this is without prejudice to other national business registration requirements as may be applicable. For this, you would need personal documentation such as residence certificate, birth certificate and i.d. picture.

You have to prepare a feasibility study and business plan so that you would have the necessary supporting documents in order to enter into a franchise or supply agreement with suppliers which you have to source out from country. the nearer from your business location, the better. you must have enough financial capacity as you would be required to provide your own storage tank and dispensers vis-a-vis pos and other business machines. you have to make sure that your service station complies with the safety, security and environmental statues of your local and national government.

@andrew encena, Las Pinas City, Metro Manila. Expenses for setting up CNG and Gasoline Station varies from country to country and whether you are going to franchise a multinational brand the likes of Shell, BP, Chevron and Total. In the Philippines, you would most likely need at least 50 million pesos to cover the construction of the service station, the underground fuel tanks, dispensers, POS and other equipment. this would also cover the bond for the initial supply of petroleum products. For natural gas, however, 30 million could do the job.

@dwip joy debbarman, getting license for filing station starts with having to register a business name with your city's business licensing and permit office. you would be required to pay certain reasonable processing fees with the satisfaction of certain requirements the likes of business location map, fire certificate and other safety and environmental regulatory certificates.

@mae hunt. I suggest that you visit the corporate office of any petroleum company you wish to enter into a franchise agreement with, either, Chevron (Caltex), Shell, Petron, Seaoil, etc. Specific matters shall be discussed by their business development/franchise managers, the likes of bonds, sales quota per month, construction of the station, profit per liter and similar circumstance. One thing for sure, they shall require that you submit a letter of intent, feasibility study, business plan, and other business/personal documents (i.e., ID, DTI or SEC registration). You can contact the following:

Chevron Philippines Inc.
6/F 6750 Ayala Avenue
Makati City 1226
Philippines
Telephone: +63.2.841.1000
Fax: +63.2.841.1092
Email for general inquiries: cpi-pgpa@chevron.com

Shell Philippines
Corporate Offices Shell House
156 Valero Street
Salcedo Village
Makati City 1227
PHILIPPINES
Trunkline +63 2 8166501
Fax no. +63 2 8166565

Petron Corporation
San Miguel Corp. Head Office Complex
40 San Miguel Avenue
1550 Mandaluyong City
Hotline Number: (632) 802-7777
Toll Free Numbers:

Seaoil Philippines
Corporate Office - Taipan
22nd floor, The Taipan Place, F. Ortigas Jr. Road (formerly Emerald Ave.), Ortigas Center, Pasig, Philippines
Tel: (63)-2-397-1010
Fax: (63)-2-397-1011

Corporate Office - Raffles
7th floor, Raffles Corporate Center, F. Ortigas Jr. Road (formerly Emerald Ave.), Ortigas Center, Pasig, Philippines
Tel: (63)-2-310-5110
Fax: (63)-2-397-1011

that would suit about a small fuel station with 3 dispensers, pos, 2 underground fuel tank and other materials/tools.

@mitch, obtaining an already existing service station is always a positive move considering the following circumstance: 1) it would require small/economic renovation and refurbishment, thus, less cost on construction; 2) it has already established a customer base, thus, a niche in the business; 3) you can operate while undertaking certain phase of the renovation/refurbishments.

On the other hand, you still would need to enter into franchise agreement with the previous petroleum company supplying the stocks of enter into a different contract with new suppliers. they would definitely require you to post a bond, the amount would be determined by their marketing department though. likewise, you would be paying the required business and environmental fees to be set by your local government.

Remember, no local or foreign owned petroleum company would shoulder expenses for the start up and/or operation of a service station for and in-behalf of a franchisee/operator. you need to shell out investment. a mortgage with a bank can facilitate this. good luck