Major shake-up for petrol stations in South Africa
With Shell dropping petrol stations in South Africa—and new brand, Astron Energy hitting its latest milestone—there’s a new spark of energy among big players like Engen and BP to shake up their offerings and stand out.
Astron Energy has hit a milestone in its massive rebranding project in South Africa, now accounting for 300 service stations across the country.
The group, which entered the South African market in 2018 when Glencore purchased Chevron South Africa, took over the Caltex network of service stations in 2021 and has been rolling out a rebranding of 850 stations and other operations in the country and Botswana.
This includes the refinery in Cape Town, lubricants manufacturing plant in Durban, 15 terminals, 180 commercial and industrial sites, and corporate facilities.
On Friday (12 July), the group rebranded its 300th service station forecourt with the official opening of the Astron Energy Mageza Sweetwaters retail site in Sweetwater Mpumuza in Pietermaritzburg.
The group said it has targeted a total of 400 sites to be completed before the end of 2024, which would mark the halfway point in the project.
According to Astron Energy, the rebranding project not only includes switching names and colours but also involves the “revitalisation” of the stations, including older stations in remote areas where outdated designs and engineering need an overhaul.
The group said it had amassed a “small army” of contracting teams, split between ‘debranding’ and ‘rebranding’, using the skills and services from local communities to get work done as quickly as possible.
Astron said it aims to be the biggest service station brand in the country.
General Manager for Retail Sales and Marketing, Farouk Farista said: “We have now hit the 300-site mark as Astron Energy and this takes us ahead of several other fuel brands which have been around for much longer.
“We are the new kid on the block in terms of our brand but our heritage in South Africa stretches back over a century,” he added. “We are the new brand that people can trust for service excellence, quality and innovation in the retail space.”
According to Farista, the Astron Energy brand has been well received and has sparked interest from the community and retailers alike with its bold new look and offering.
“We now see significant discussion and quick brand recognition and recall as our network and visibility continues to expand. Customers are enthusiastic about the bolder appearance in what is typically a ‘conservative’ market.”
Battle of the Petrol Stations
According to the South African Petroleum Industry Association, there are well over 4,000 service stations in South Africa, dominated by six main brands.
Once the rebranding project is completed, Astron Energy will have the second-biggest service station network in the country, after Engen.
These are the latest reported/available stats on the top stations:
- Engen: ~950 (1,300 in Sub-Saharan Africa)
- Astron Energy: ~800 (300 rebranded)
- Shell: ~600
- TotalEnergies: ~560
- BP: ~500
- Sasol: ~400
The future of the Shell brand in South Africa is currently in question, with the group exiting its downstream business in the country. If these stations are acquired by competitors or open to a new brand, there could be another seismic shift in the market.
Shell has not yet announced what will happen to its service station network; however, Liquid Fuels Wholesalers Association of South Africa’s CEO, Peter Morgan speculated in May that it may still maintain a presence in the country under the Viva brand, as it has in other regions it pulled out of the downstream business.
The country’s other big players, Engen and BP, are also not sitting around, with both announcing big expansion plans in the country amid commitments to keep investing in South Africa.
Engen and Vivo Energy completed their merger in May 2024, with the combined group laying out commitments to invest and expand Engen’s operations in South Africa through “a significant amount of capital expenditure”.
The group also committed to major investments in renewable solar power generation projects to help transform the economy while supporting a just energy transition.
“The enlarged Vivo Energy will only make changes that add value,” it said.
“As part of the transaction, Vivo Energy has committed to invest a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business, for the benefit of the South African population.”
BP, meanwhile, said it wanted to expand beyond 500 forecourts in South Africa, including upgrading its offerings and rolling out to more areas.
“From our forecourt to our partners in retailing, storage and distribution, we are dedicated to remaining a forward-looking, responsible and effective steward of South Africa’s energy supply networks for as long as the country needs us,” BP South Africa CEO Taelo Mojapelo said.
The group said it has drawn up a strategic roadmap for the long term, with three key goals:
- To expand and high-grade the portfolio of over 500 service stations, while growing the number of forecourts owned by black entrepreneurs or run by black franchisees.
- Upgrading and expanding its forecourt offerings.
- Optimising its supply model.
Read: New petrol station brand spreading across South Africa
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