This offer dubbed as "People's Gas Station" will give feasible business to small-ticket capitalists to own a Gas Station that primarily targets the mainstream market, especially the jeepney operators, and diesel-generated vehicles.
Genergex Petroleum Corporation president Gerry Malixi said the P600,000 franchise fee will already include installation of equipment, dispensing pump, and 12,000 liter-tank to initially start a station.
He said there are a lot of areas in Cebu province, as well as neighboring provinces in the Visayas that are viable for a gas station business especially that Genergex is offering a lower cost of diesel product compared to the prices offered by giant petroleum distributors.
Genergex will collect an 80 percent down payment upon signing a franchise deal with the company, and the balance will be paid immediately after the franchisee orders the first delivery.
With the unstable price of petroleum nowadays, he said a lot of motorists, especially those using diesel-powered vehicles are looking for cheaper fuel.
A good example of this is the Genergex franchise operation adjacent to SM City Cebu, which got its Return of Investment (ROI) in just one year.
Genergex is also offering gasoline products that are 30 centavos cheaper than the prevailing cost in the market. This will also give an edge to the potential "People's Gas Station" operator to attract considerable number of customers.
Being one of the small players in the deregulated petroleum industry in the Philippines, diesel distributors like Genergex can afford to lower their prices offering the same quality of diesel products, as their operations only require minimal cost.
Aside from the PUJ operators, Genergex is also targeting establishments that need back-up fuel for their generators, especially those operating for 24 hours a day, 7 days a week.
In Metro Cebu, he said there are feasible areas for "People's Gas Station." He said it would only need a minimal requirement for the lot and there are still plenty of idle lots in the high traffic areas, or in the huge communities around Metro Cebu.
Genergex now has 15 dealers or refilling stations all over Cebu province, from Santander, to Daanbantayan. It maintains its depot in Lilo-an wharf.
After the Philippine government opened the petroleum industry through deregulation in 1999, small players like Genergex now hold a 30 percent share of petroleum product sales nationwide. There are now over 50 small petroleum bulk distributors in the country bravely competing with the three giants- Shell, Caltex, and Petron.
About 70 percent of the total petroleum/fuel requirement in the Philippines is diesel and 30 percent gasoline.