- As you can see, the commission rate for dealers is already determined by the government. And after factoring in overhead - labour, utilities, credit card transaction fees, the average profit is slimmed down to ~5 sen to 8 sen per litre
- That would mean that petrol stations make an average net margin of just 3% on their fuel
- Assuming daily sales of 15k litres at RM0.08/litre, your typical station might only bring home RM1200/day from petrol
The Real Money is Made Inside The Store
- Usually, customers do more than just refuel their car when visiting a petrol station. Chances are, they will head inside the convenience store and end up buying some treats
- The goods inside these stores only account for 30% of the average petrol station's revenue, yet bring in 70% of the profit
- But most modern pumps have card readers, negating the need to go inside and pay, lowering down the average time a customer spends at a petrol station
The business environment for petrol stations in Malaysia is very difficult. The way I see it, if you want to make it, you'll need to take a page out of IKEA's playbook - make your customers come for the petrol but stay for something else.
Battling small margins, cutthroat competition, and the looming threat of electric vehicles, many petrol stations will be more reliant than ever on these secondary revenue streams.