Thailand: Caltex Looks to Dealer Operated Service Station Network

It has been reported that Chevron will convert its remaining company owned Caltex sites to  dealer or  independent operated sites in the tough petrol retail environment of Thailand.

                         Photo:   Bangkok Post                              A Caltex petrol service station in Bangkok, soon to be operated by a local operator. US-based Chevron is giving up control of its Caltex stations in the tough Thai retail oil market, where profits are scarce due to government pressure on fuel prices.

According to Anek Lawanprasert, Chevron’s Retail Sales Manager in Thailand, Caltex is the country's fourth-largest petrol retail operator, and it has seen its Thai network of 550 service stations reduce to 420 over the last four years.  Chevron has 60 company owned and managed service stations within the network.  The remaining 360 service stations are either dealer operated or owned.
Mr Anek said, "We think this is a good time for us to open the chance for local operators to be our partners in the oil business.”

Chevron has used its budget to promote its Techron fuel brand as opposed to marketing.  The Caltex brand is a strong established brand not just in  Thailand but Asia (Africa and MiddleEast). Chevron plans to double its gross marketing margin offered to local dealer operators to one baht per litre of petrol sold. The firm is confident this incentive will help it find the right  buyers for its 60 coco service stations. The company also plans to add an additional 30 Caltex branded service stations in 2010.

Caltex this week officially launched a new formula for its Techron fuel additive. It claims the additive, first launched in Thailand in 2006, can boost diesel engine efficiency while reducing fuel consumption by 6%.  Mr Anek said Caltex expects Techron to help maintain customer loyalty to the firm and support diesel sales at 170 million litres per month with petrol and gasohol of 100 million litres each.

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