For decades, petrol stations in South Africa were built around a single core offering, which is fuel. However, this is changing due to shifts in consumer behaviour, technology, and mobility trends.
This is according to Karen Keylock, National Retail Franchising Manager at Nedbank Commercial Banking.
She noted that the South African retail fuel sector is not in decline, but evolving. She added that this view is echoed at industry gatherings across the country, including recent retail fuel conferences.
While fuel volumes are under pressure, she said the forecourt itself remains one of the most valuable pieces of real estate in the modern economy.
The real question facing the industry is no longer whether it has a future, but whether it can adapt fast enough to secure it.
Keylock explained that the model of offering just fuel is now being reshaped by a barrage of factors.
These include more fuel-efficient vehicles, work-from-home shifts, rising economic pressure on households, e-hailing services, improved public transport, last-mile delivery, cheaper domestic flights, and the gradual entry of electric vehicles.
Together, these trends are steadily eroding fuel’s dominance as the primary profit driver on the forecourt.
“While fuel’s dominance as a profit driver is declining, these trends are unlocking new opportunities for value creation and diversification,” said Keylock.
Global research from the National Association of Convenience Stores (NACS) shows that fuel retailers can no longer rely on petrol alone.
Add-on categories are becoming the main focus and changing what customers need. This is redefining the role of the forecourt. In South Africa, this shift has already begun but is still underdeveloped.
NielsenIQ research also shows that forecourt convenience stores may stock as many as 13,000 products, yet just 1% of those items generate half of total sales.
The fastest-growing categories include energy drinks, mineral water, flavoured water and snack foods such as chips, while staples like soft drinks, cigarettes and bread remain top sellers.
What you should expect from petrol stations
“Growth is not about expanding product ranges indiscriminately, but about curating the right mix, elevating quality, and designing a differentiated customer experience,” said Keylock.
Internationally, categories such as coffee, fresh food and premium convenience offerings have become anchors for forecourt profitability, presenting what she described as a significant untapped opportunity in South Africa.
Shopping habits have also changed permanently. Pre-pandemic, commuting routes largely dictated where people stopped.
During Covid-19, proximity mattered most. Today, hybrid routines and e-commerce have expanded consumer choice and intensified competition for foot traffic.
For forecourt owners, Keylock said, understanding local customer dynamics is now essential rather than optional. How forecourts run is becoming just as important as what they sell.
Technology is now a key factor, with tools like artificial intelligence, sensor-based theft prevention, data-driven inventory systems, and digital loyalty programs making operations more efficient and improving customer engagement.
Energy diversification is another major shift. As electric vehicles and alternative fuels become more popular, petrol stations that include charging stations and improve the customer experience will be better prepared to meet future demand.
According to Keylock, none of this transformation can happen in isolation. “Partnerships are not a nice-to-have—they are the catalyst for reinvention,” she said.
Financial institutions, technology providers and retail specialists all have a role to play in funding and enabling the next generation of petrol stations.
The idea that South Africa’s petrol stations are fading away is misleading, she said. Those willing to move beyond petrol as the centrepiece will be the ones that stick around in the future.
