South Africa’s fuel retail industry is undergoing one of its biggest transformations in decades as rising fuel pressures, shifting consumer habits and new technology force operators to rethink the future of the forecourt.
That was the central message at the recent Convenience Leaders’ Exchange held in Sandton, where senior leaders from the fuel, convenience retail and quick-service restaurant sectors gathered to discuss the future of South African fuel retail.
Hosted by the Fuel Retailers Association in partnership with the National Association of Convenience Stores, the event took place just days before South Africa’s latest fuel price adjustment took effect on 3 June 2026.
Fuel retailers face mounting pressure
According to Fuel Retailers Association CEO Reggie Sibiya, the industry is facing growing pressure from both global and local economic factors.
“With fuel prices under strain due to the global energy crisis, with local margins reducing as fuel prices skyrocket, coupled with illegal trading, statutory levies, Road Accident Fund contributions and high credit card and reward costs, the challenges become those of sustainability and profitability for the fuel retailer,” said Sibiya.
The fuel sector has also had to navigate:
- Ongoing fuel price volatility
- Reduced profit margins
- Rising operational costs
- Consumer spending pressure
- The long-term shift toward electric vehicles
Forecourts are becoming convenience destinations
One of the strongest themes emerging from the conference was the rapid growth of convenience retail inside fuel forecourts.
Research presented at the event showed that convenience retail, FMCG and quick-service restaurant sales now contribute roughly 46% of total forecourt turnover, representing a market worth around R42 billion.
According to Nicola Allen of Trade Intelligence, many customers visiting forecourts are no longer stopping primarily for fuel.
“Convenience retailers must recognise the opportunities that this opens up and move beyond fuel to create smart inclusive lifestyle destinations in their forecourts,” Allen explained.
The data showed that customers increasingly use forecourts for:
- Everyday essentials
- Takeaway food
- Emergency purchases
- Coffee stops
- Last-minute shopping
Fuel stations are evolving into food and retail hubs
Global convenience retail trends presented by NACS-Global Director Mark Wohltmann revealed that the industry is increasingly shifting away from traditional petrol-focused models.
“The trend globally is from being a convenience store with food to being a restaurant with convenience,” Wohltmann explained.
He added that forecourts are increasingly competing on:
- Food quality
- Customer experience
- Retail convenience
- Speed of service
- Lifestyle offerings
South African forecourts are already beginning to reflect this shift, with operators expanding:
- Fresh food options
- Coffee offerings
- Retail partnerships
- Seating areas
- Lifestyle services
Examples highlighted included:
- The Pantry in Rosebank
- Engen City Bowl in Cape Town
AI and technology becoming central to retail operations
Artificial intelligence also emerged as a major discussion point during the event.
Industry leaders believe AI will increasingly influence:
- Stock management
- Demand forecasting
- Price optimisation
- Customer insights
- Quality control
- Reporting systems
Panel discussions noted that while automation already exists in many retail environments, AI introduces systems capable of learning and adapting over time.
Retailers were encouraged to begin preparing for more sophisticated technology integration as the sector evolves.
Electric vehicles remain part of the long-term future
Although South Africa’s electric vehicle rollout has progressed more slowly than many international markets, the transition remains part of the long-term strategy discussions within the industry.
Sibiya said earlier international discussions with NACS had focused heavily on how fuel stations would eventually adapt to EV charging infrastructure.
However, local challenges such as load shedding and economic instability delayed parts of that transition.
Even so, the industry believes the eventual move toward EV adoption remains inevitable.
Consumer behaviour is changing rapidly
The conference also highlighted how changing demographics and consumer behaviour are reshaping convenience retail globally.
Younger consumers are increasingly prioritising:
- Convenience
- Premium coffee
- Fresh food
- Flexible shopping
- Faster service
- Lifestyle-driven retail experiences
At the same time, brand loyalty is weakening as consumers become more price-sensitive and convenience-focused.
This creates pressure on forecourts to continuously adapt their offerings and customer experience.
The future of the forecourt
Industry leaders believe fuel stations are rapidly transforming into broader retail and lifestyle hubs rather than purely fuel destinations.
Sibiya said collaboration across the industry will be essential if operators hope to remain competitive in a rapidly evolving market.
“At the end of the day, it is all about the customer, what they want and how to cater to them as effortlessly as possible,” he said.
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