Big change coming for petrol stations in South Africa

The gradual switch from petrol and diesel cars to electric vehicles (EVs) is unlikely to wipe out fuel stations or all of the 140,000 jobs they create in South Africa.

Instead, many of these positions will likely evolve into roles serving additional functions at “mobility” stations, offering a wider range of products and services than garages.

The economic research institution Trade & Industrial Policy Strategies (TIPS) recently published a bulletin highlighting the risks that new energy vehicles (NEVs) pose to legacy stakeholders in the automotive industry.

Among the facilities under threat are petrol stations and their employees — including pump attendants.

TIPS warned that without adequate preparation, over 140,000 petrol station workers stood to lose their jobs in the lead-up to the full migration to EVs.

While South Africa is likely to see a slow transition to these cars, developments abroad, like Europe’s ban on new petrol and diesel vehicle sales from 2035, will substantially impact the cars that can be imported locally.

It will also force local car manufacturers to upgrade their production lines to make EVs, as a large part of their business comes from exporting vehicles.

That, in turn, could also make manufacturing EVs for the local market more sensible once the necessary economies of scale are achieved to keep such cars competitively priced for South Africa.

Many of the developed countries around the world that are pushing for EV adoption already use self-service at fuel stations, so the transition to electric charging stations had no impact on jobs.

South Africa’s public EV charging approach is similar to Europe, the US, and many developed countries in that drivers plug in and pay for their charging themselves.

Some might surmise that this change will eliminate the need for pump attendants completely.

Forecourts of the future

However, Morgan Knowles, the transaction manager of Occupier Services, Cushman & Wakefield | BROLL, holds a different view.

Knowles previously explained that fuel stations and their employees will not disappear altogether but transition into providing more services with diversified revenue streams.

Knowles pointed out that convenience and “to-go” consumer culture had already shifted demand towards retail shopping and adjacent services, which means fuel-only revenues only make up about half a station’s income.

“The forecourt of tomorrow will adopt wider mobility and energy trends and, as such, enhance the role of services offered resulting in fuel making up only 20% of the forecourt’s offering,” Knowles argued.

“Fuel stations will evolve into mobility stations, offering a wider range of sources, such as electricity, natural gas/CNG, petrol, diesel, LPG, biofuels and hydrogen,” Knowles said.

“This will require adjusting physical layouts — like fuel tanks, batteries, pumps — and coming up with innovative strategies to provide smooth fuelling services to a variety of customers.”

Among the new services that could pop up or become more common at mobility stations are online shopping and grocery pick-up points, pharmacies, laundry services, gyms, and even co-working spaces.

South Africa’s two biggest EV charging operators — GridCars and Rubicon — concur that petrol stations and the jobs they create will not be utterly obliterated.

GridCars director DeVilliers Botha told MyBroadband that although there would likely be some job cuts as a result of the transition, a significant number of attendants and workers would take up alternative roles.

Botha also explained that EVs still needed small regular checkups — like windshield cleaning, washer fluid replacement, and tyre pressure corrections — which many people won’t want to fuss about doing themselves.

Rubicon e-mobility general manager Hilton Musk said that fuel stations would continue to evolve and that petrol attendants’ roles would be adapted with the changes.

“Growth in the EV market, as with any developing market, will bring with it new investment and opportunities,” said Musk.

“Major technological advancement has generally followed this trend, creating secondary and tertiary markets up- and downstream.”

“Think of when internal combustion engine (ICE) vehicles started out and fuel stations didn’t exist, which slowly developed and expanded and created entirely new markets with more opportunities.”

Musk added that the imminent risk to fuel stations and petrol attendants was low, given the high average vehicle age in South Africa and the probability of EVs only surpassing ICE vehicles (in SA) being in the distant future.

Another company currently building an off-grid charging network in South Africa — Zero Carbon Charge — is positioning its stations to operate alongside various other businesses.

Its planned sites include a nursery with a coffee shop along the N2 outside George, a guest farm and café along the R46 near Tulbagh, and numerous farm stalls with extensive product offerings.

Increasing the traffic and time people spend at such locations increases the potential for business growth and further jobs.

ZeroCC’s stations on vacant land will also include a farm stall, restroom facilities,and botanical gardens.

Security requirements could also demand upskilling

A developing concern around EV charging stations is potential targeting by copper cable theft syndicates.

The US has seen several cases where charging stations’ built-in cables were cut for their high copper value.

For example, nine Tesla Supercharger stations in San Francisco have repeatedly had their charging cables cut and removed by thieves.

Notably, Botha told MyBroadband that GridCars had not seen any instances of vandalism or theft at its stations in South Africa, despite copper theft being a regular crime in South Africa.

A major part of this might be down to the chargers often being placed in locations with high foot traffic or a security presence — like malls or underground office parking bays.

However, many of the long-distance public chargers are located at remote fuel stations that can get very quiet at night.

In these cases, it may be the 24/7 presence of fuel station workers and on-site security that plays a part in deterring criminals from trying their luck.

However, violent criminal syndicates frequently bomb and rob ATMs at fuel stations, regardless of the presence of fuel station workers.

The expansion of more EV charging stations could create more opportunities for thieves to steal cables. That could create demand for more security personnel or upskilling of willing fuel station workers who could take on security roles.