Multinational fuels company Gulf Oil International speeds up its expansion in Chile with its local partner, Cabal. After opening its tenth service station, the company plans to reach nearly 100 stations in the next five years and make the country a cornerstone for its regional growth.
Multinational fuel and lubricants company Gulf Oil International is making sound progress in its growth plan in Chile. After three years in the country, the company recently opened its tenth service station, the first in the Metropolitan Region, in partnership with the local company, Cabal.
The milestone marks the beginning of a more accelerated expansion phase that, according to the company, will multiply the brand’s presence in Chile.
«In four or five years, we will increase our presence in Chile tenfold,» said Gastón Mienko, Gulf Oil International Group’s Vice-President for South America and the rest of Latin America (except Brazil), in an interview with La Tercera.
The service station industry in Chile generates around US$20 billion annually but is highly concentrated: Copec holds 58% of the market, followed by Shell with 23% and Aramco with 14%.
The remaining roughly 5%, held by independent operators and small chains, is exactly where Gulf aims to expand.
«There is room,» said Mienko, emphasizing that Gulf’s strategy is built on providing a flexible, attractive model for independent operators.
According to the executive, switching to the Gulf brand can boost the average sales ticket by 20% to 30% compared to a private brand.
Gulf is not a minor player in the energy industry. Founded in Pittsburgh, USA, in 1901, it opened the world’s first service station in 1913. Although its oil operations were acquired by Standard Oil (Chevron’s predecessor) in 1984, the brand has persisted and is now part of the Indian Hinduja group, based in London.
Internationally, Gulf operates close to 1,500 service stations across 26 countries, in addition to its lubricant and agribusiness lines of business. In Latin America, the company operates in Mexico, Argentina, Brazil and the Dominican Republic. This year, it will expand operations to Peru, followed by Colombia, Ecuador and Paraguay over the next 18 months.
«At the end of the year, we start in Peru. We will be arriving in Colombia in a year and a half, then Ecuador, by June or July of next year,» Mienko told La Tercera.
Chile’s first Gulf station opened in Rancagua, and the most recent one is in Colina. They will soon add points of sale in Valparaíso and new locations in the capital city of Santiago.
The goal is clear: to grow from the current 10 gas stations to approximately 100 within four to five years, consolidating a significant presence in the Chilean market.
«Many operators feel a bit suffocated by the control that big brands hold. The Gulf and Cabal model is very flexible for the operator,» explained Mienko, emphasizing the company’s dedication to creating a regional community of operators with unique benefits, including networking opportunities and even exclusive experiences like attending Formula One.
The decision to invest in Chile reflects the company’s vision of a dynamic market, where independent operators seek new opportunities and consumers value international brands with history and support.
«In four to five years, we will increase our presence in Chile tenfold,» Mienko reiterated, confirming that the strategy in the country will be key to Gulf’s regional consolidation plan.
Are you interested in investing in Chile? Learn more about the opportunities available at www.investchile.gob.cl or contact us.