Shell promised Vladimir Putin a full tank

The Anglo-Dutch company will open 260 gas stations within five years.
19.07.2019
Vedomosti
Origin source
The Executive Director of Royal Dutch Shell, Ben van Berden, at a meeting with President Vladimir Putin, promised to increase the company's gas station network in Russia, Interfax reports. “As part of the development of the network of petrol stations in Russia, in the next five years we will open one new petrol station weekly,” he said.

According to Van Berden, Russia is in the top 5 largest economies and is very important for the development of Royal Dutch Shell in the retail segment, as well as in the segment of oil refining.

Now the company has more than 300 gas stations in Russia under the Shell brand, some of them belong to the Russian division of Royal Dutch Shell, and another part of the company has provided a franchise, said a company representative. He did not say what percentage of his own gas stations, nor did he answer how much the company intends to spend on developing its retail network of gas stations.

From the words of van Berden, it follows that up to July 2024, up to 260 gas stations under the Shell brand will appear on the Russian market, thus the company can double its presence on the Russian market of gas stations. There will be new gas stations (own or franchised) or purchased and refitted, it is not clear from the words of van Berden, the Shell representative did not specify this.

To build one gas station, where the exhibition hall with accompanying products will be presented, and the Shell fuel filling complex directly, can cost from 150 to 170 million rubles, says Maxwell Expert LLC LLC general director Andrei Karameseyli.

“If you build a small gas station for two gas stations with a cash register without a sales area and without buying land, then such refueling can cost from 20 million rubles,” says Pavel Bazhenov, president of the Independent Fuel Union. According to him, the construction of gas stations with a trading hall, several gas stations can cost from 100 million rubles, and this is without taking into account the purchase of land. If Shell will give a franchise, then the company's construction costs will be reduced to almost zero, but the buyer of the franchise will have to invest from 15 to 30 million rubles. in the re-equipment of gas stations under the requirements of the company, said Bazhenov.

Thus, Shell can spend up to 44.2 billion rubles on the program to increase the network of gas stations in Russia. for five years, or 8.8 billion rubles. per year, if you build your own gas stations with retail outlets.

“Last year for independent gas stations was terrible,” recalls Yevgeny Arkusha, president of the Russian Fuel Union. But thanks to the compensation of oil companies for the supply of fuel to the domestic market, all independent gas stations this year - with the exception of gas stations in the Far East - have almost closed the losses of last year and are working with profit, says Arkusha.

He admits that building long-term gas stations with trading halls is more profitable, since the profitability from related products is higher than from selling fuel. “The margin of coffee sales can reach 230%, but the turnover is low, and on the sale of gasoline the turnover is higher, but the margin is lower,” Arkusha states.

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