South African petrol stations are shifting focus from fuel to convenience retail as fuel consumption declines. A Nedbank briefing on the Forecourt Retail Report 2025/26 highlighted that nearly half of customers visit for food and groceries rather than fuel. Forecourt convenience sales reached R40-billion in 2024 and are projected to grow further.
At a Nedbank briefing last week, experts unpacked the Forecourt Retail Report 2025/26, warning that fuel is no longer the primary driver for forecourts. Fuel consumption in South Africa dropped 6.3% in 2024 due to efficient vehicles, hybrid working, and constrained consumers. Nedbank economist Crystal Huntley noted global risks like tensions around the Strait of Hormuz pushing oil prices higher.
"Domestic conditions are improving, and consumer activity is recovering, but global risks, particularly oil, continue to pose a major threat to stability," Huntley said. She advised forecourt operators to plan for volatility and diversify amid tight margins on fuel.
Convenience sales from about 3,000 forecourt stores rose 4% to R40-billion in 2024, accounting for 15% of South Africa's fast-moving consumer goods convenience channels. Projections show growth to R48-billion by 2028. Notably, 46% of visitors do not buy fuel, with one in five seeing forecourts as destinations, per Trade Intelligence analyst Nicola Allen.
Allen highlighted long-term shifts reducing fuel demand, including 15-20% volume declines in metros since Covid-19. Operators are partnering with supermarkets like Woolworths, Pick n Pay, and FreshStop, which has over 330 sites. Examples include BP's expansion plans and a Shell Boksburg Motors owner adding a food truck for hot meals.
