Star Fuels Marketing, the exclusive licensee of Caltex fuels in Thailand, has partnered with local oil retailer Pure Thai Energy to expand the network of Caltex petrol stations in the country, aiming to gain market share in a competitive domestic fuel retail market.
The cooperation should allow Caltex, a petroleum brand name of Chevron Corporation, to serve more motorists in Thailand, helping Caltex to expand.
"The partnership with Pure Thai will enable our fuel retail business under the Caltex brand to be on track to hit the 10% fuel retail growth target at the end of 2024," said Shashank Nanavati, executive vice-president of Star Petroleum Refining Plc, an oil refinery operator and the parent firm of Star Fuels Marketing.
Pure Thai previously ran an oil refinery, then exited the business after a 20-year contract with PTT Global Chemical to acquire raw materials expired.
Pure Thai operates 78 petrol stations in Bangkok and upcountry. Its service stations will be renovated under the Caltex brand from this month until January, increasing the number of Caltex-branded stations from 450 at present.
"Once the renovation of all 78 service stations has been completed, there will be a total of 528 Caltex service stations," said Mr Nanavati.
Star Fuels Marketing expects Caltex's share of the domestic oil retail market to increase by 1 percentage point, up from 5.3% at present, following the partnership, while the company's oil sales are projected to increase to 140 million litres a month, up from 120 million litres per month at present.
The company has prepared a 125-million-baht marketing budget to strengthen the Caltex brand and enhance communications with customers through online media platforms, including social media.
Star Fuels Marketing is aware it is facing intensive competition in the domestic market, causing the company to come up with new strategies to increase sales.
"We also place an emphasis on expanding our non-oil offerings to enhance customer satisfaction," said Sompratana Chermsirivatana, Star Fuels Marketing's vice-president for retail business development.
The offerings include coffee shops, restaurants, convenience stores as well as car repair and care services.
"We aim to increase the number of retail outlets to cover 85% of all Caltex service stations by the end of 2025, up from the existing level of 80%," said Ms Sompratana.