As a result, the majority of the fuel sold is through service stations. There is a strong dealer network and retail margins are high. Both Shell and Elf have major service station upgrading projects underway. Current marketing is focused on adding additional profit opportunities at the forecourt level which will enable a service station operator to survive the impact of diminishing margins on fuels. Examples of this trend are convenience stores, car washes, ATMs and post offices being an integral part of the service station operation.
Costs are generally high as many imports come from France.
High quality lubricants are sold to meet the needs of the modern European car, but sales performance is modest. Replacing French imports with South African sourced lubricants would potentially reduce costs. Tank installation standards recognise the volcanic nature of the soil, demanding installation in vaults filled with non-acidic material. Specifications for service station construction are to French standards, with reasonable supervision by the authorities. The thermal power plant completed is a joint venture between EDF, the French government and individual shareholders.