Chevron on track for B5 biodiesel
Chevron Malaysia Limited (Chevron), operators of the Caltex brand, is consolidating its business model in Malaysia by offering retailers greater operating flexibility with its Retailer Owned, Retailer Operated (RORO) programme. The RORO programme allows retailers (i.e. fuel station operators) virtually limitless options in tailoring their businesses to suit their clientele.
“Our unique value prepositions ensure prospective and current retailers alike are able to leverage on the value of a world-class brand and learn from experts commited to a profitable business. Chevron has also developed training modules targeted at improving customer service by retailers and customer service representatives and making a competitive market work for you. This comprehensive program translates to an opportunity to earn potentially higher returns,” said Jeremy Oh, Country Chairman, Chevron Malaysia Limited.
To start up a Caltex station, Chevron requires prospective retailers to bring on the table a piece of land measuring at least 40,000 square feet and a minimum investment capital of RM 2 million to fund for building construction, facilities, equipment, and working capital.
There is a high level of flexibility afforded for retailers to customize their backcourt offerings such as convenience stores, franchise outlets, and customize promotional offerings. At a media briefing yesterday, Mr Oh was quoting examples of retailers who set up side businesses like car washes, bakeries and even one that has a barber to complement the core business of selling fuel.
At the same media briefing, Chevron also brought the media up to speed with its progress in implementing the Government’s plan to have all diesel pumps in the Central Region (Malacca, Negri Sembilan, Kuala Lumpur, and Selangor) selling B5 biodiesel by 1 November 2011.
Mr Oh said, “Chevron is well-positioned to ensure a timely and seamless implementation of B5 across the Central region. In line with our commitment towards quality fuels, our B5 offering will feature the proven cleaning power of Techron D. We are also working closely with the Ministry of Plantation Industries and Commodities and the Malaysian Palm Oil Board to monitor consumer feedback and awareness.”
Chevron has begun operations of a fully functional B5 biodiesel blending facility in Pulau Indah, which took them eight months to complete. Currently, 29 Caltex fuel stations in Malacca and Negri Sembilan are already selling B5 biodiesel, with their remaining 73 stations in other parts of the Central Region set to follow by the 1 November deadline.
The implementation of B5 biodiesel is limited not only to Caltex but also to all brands of fuel, so regardless which station you go to, if that area is mandated to sell B5, it will sell B5 whether you like it or not. As of now, BMW Group Malaysia has officially announced that their diesel-powered models will have no problems accepting B5 bio-diesel. The Government has yet to announce a roadmap of future implementation of B5 biodiesel for the rest of the country.
