Opening a gas station in Bulgaria requires a thorough knowledge of the legal and regulatory requirements, as well as the specific features of this type of business. Clients of the consulting company “Elan Consulting” often ask questions such as: “What are the requirements for a gas station?”, “What is needed for the construction of a gas station?”, “How much does a gas station cost?”, “How to open a gas station?” and “What are the requirements for modular gas stations?”. These questions are essential for everyone who wishes to invest in this sector, as well as for those interested in the franchise opportunities of gas stations such as Lukoil, Shell and OMV.
The main requirements for opening a gas station include compliance with the legislation governing the trade in fuels, including the Fuel Act and the regulations governing this sector. Of great importance are also the specific requirements for distance from other buildings and infrastructure objects, which ensure the safety and efficiency of the service station. The question “What are the requirements for a gas station?” includes many aspects, including licensing conditions, registration procedures with the Ministry of Economy and entry in the Register of persons carrying out economic activities related to oil and petroleum products.
Interest in modular gas stations is also growing, with potential investors interested in “Modular gas stations requirements” and “Modular gas station price”. Modular gas stations offer flexibility and lower construction costs, making them an attractive choice for many entrepreneurs. At the same time, departmental gas stations represent another interesting option, with the issues “Departmental gas station price” and “Requirements for departmental gas station” often on the agenda.
Questions related to franchise gas stations, such as “How do you open a franchise gas station?” and “How much does a gas station franchise cost?” are also frequently asked. Interest in large brands such as Lukoil, Shell and OMV is high, with potential franchisees looking for information about the conditions and requirements for partnering with these companies. The topic of franchising gas stations includes numerous aspects, from legal and financial to operational and marketing.
Modular gas stations are portable and full-featured gas stations that include all the necessary elements for safe and efficient operation. They consist of metal tanks with a capacity between 5000 and 30000 liters, petrol columns, ventilation systems and fire-fighting equipment. The tanks are horizontal, double-walled and made of steel, and are painted with an anti-corrosion coating for long-lasting protection. Inlet adapters are installed at the top of the tank, which prevent spills when taking fuel.
Modular gas stations are designed to be easy to install and maintain. In order for them to actually start working, it is only necessary to connect to a power supply. They are suitable for both permanent and temporary needs, which makes them the preferred choice for departmental sites and small businesses. The equipment of the modular gas station also includes various types of gas columns, which can be customized according to the customer's needs.
In order to place a modular gas station in Bulgaria, several permits and licenses are required, as well as compliance with specific legal requirements, especially when the object will be used for commercial activity, that is, for the sale of fuel to third parties. Registration and licensing of commercial establishments, including modular gas stations, is regulated by the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products (ZARIDSNPNP).
According to the law, any person who carries out economic activities related to oil and products of petroleum origin (that is, commercial activity) is subject to registration (Art. 3, para. 1). This registration takes place in the Ministry of Economy and Industry and is mandatory for wholesale and retail trade in petroleum and petroleum products, as well as for their storage and transportation (art. 2, para. 1). The documents required for registration include identification data, a description of the activities to be carried out and data on oil and products of petroleum origin to be processed (Art. 17, para. 1).
For the installation of a modular gas station, it is also necessary to comply with the requirements of the Law on Territorial Planning, which include obtaining a building permit and a certificate for commissioning or tolerable construction (Art. 8, para. 2, item. 2). The modular gas station must be permanently attached to real estate and meet all technical and safety requirements.
In addition, any gas station, including the modular one, must be equipped with fiscal devices that register sales and submit data to the National Revenue Agency (Art. 118, para. 1 of the Law on Value Added Tax). These devices must have the technical possibility of remote connection and feed data to the NRA in real time (Art. 118, para. 2).
In order to trade in fuels, it is also necessary to provide a security in cash or a bank guarantee for a period of one year if the value of the supplies exceeds certain thresholds (Art. 176c, para. 1 of the VAT Act). The security is not less than 20% of the taxable amount of the taxable supplies for the previous tax period (Art. 176c, para. 2).
Finally, the specific requirements and procedures for issuing licenses and certificates are defined in the regulations issued by the Minister of Economy and Industry. These regulations regulate the details regarding the submission of applications, the form and content of documents, as well as the procedure for carrying out control over compliance with legal requirements.
The minimum distances for the construction of a gas station are strictly regulated in regulatory acts to ensure safety and environmental protection. According to Ordinance No. Iz-1971 of October 29, 2009, service stations fall into the functional fire hazard class F5.3. This ordinance, which has been in force since June 5, 2010, specifies that gas stations must be designed and constructed in accordance with fire safety requirements.
According to Article 398 of the same Ordinance, structures of functional fire hazard class F5 must meet the general requirements under Part One of the Ordinance, which covers various aspects of fire safety. This also includes the distances between buildings and facilities. Article 405 defines the minimum distances between buildings and facilities of functional fire hazard subclasses F5.1, F5.2 and F5.4, as well as the distances between them and adjacent buildings of functional fire hazard classes F1, F2, F3 and F4. Distances depend on the degree of fire resistance and fire hazard category of buildings.
For service stations that are classified as Ф5.3, the specific distances are described in the regulation and include:
These distances are determined on the basis of the fire hazard category of buildings and facilities, the degree of fire resistance and the total area of the premises. Table 39 of the ordinance provides detailed information on the minimum distances that must be observed in the construction of gas stations to ensure adequate fire safety.
Since the opening of a gas station, including a modular one, for the sale of fuel is a rather complicated task, we should divide the obtaining of a license into several steps.
The first and main step in the process of obtaining a license to trade fuel at a modular gas station is the determination of the type of fuel that will be subject to trade. This is essential because different types of fuels are subject to different regulations, standards and requirements for safety and technical supervision. For example, the requirements for trading gasoline differ from those for diesel fuel, LPG or other types of fuels.
The reasons for the importance of fuel determination are several. Regulatory requirements vary for different types of fuels. For example, for trade in liquefied hydrocarbon gases (propane-butane), specific requirements specified in the Ordinance on the device, safe operation and technical supervision of gas equipment and installations for liquefied hydrocarbon gases apply. The Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products (ZARID) also specifies specific requirements for various products of petroleum origin.
Each type of fuel has its own specific characteristics and requires different safety and environmental measures. For example, liquefied hydrocarbon gases require special storage and transportation conditions, and safety requirements include measures to prevent spills, fires and explosions specified in the Ordinance on the device, safe operation and technical supervision of gas facilities and installations for liquefied hydrocarbon gases.
The equipment and facilities required to trade in different types of fuels differ. For example, tanks, pumps and pipelines for gasoline may differ from those for diesel fuel or LPG. The technical requirements include compliance with the standards for construction and operation of the facilities specified in Ordinance No. RD-02-20-2 of September 28, 2020.
Each type of fuel requires specific documentation and certification for compliance with legal requirements. The required certificates shall include evidence of compliance with technical standards and safety requirements, in accordance with the requirements of ZARID and relevant regulations.
After determining the type of fuel, the next steps include collecting the necessary documentation, drawing up a business plan and economic justification, building and equipping the modular gas station, conducting inspections and obtaining certificates, as well as submitting an application for a license.
Analysis of the market and competition is a key part of the business plan. This analysis should provide detailed information on the current state of the fuel market in the region where the modular gas station will be located. Including trends in demand and supply of fuels, competition and potential customers. The main competitors, their market position, the services they offer and pricing policy should be studied. This analysis will help identify niches in the market that can be used for the successful launch and development of the service station.
The financial plan and forecast results are another important component of the business plan. The financial plan should include a detailed budget for initial investments, operating expenses and estimated revenues. It is necessary to foresee all potential costs, including the cost of building and equipping the gas station, the cost of renting or buying land, the cost of salaries of employees, and the costs of marketing and advertising. The forecast results should show the expected revenue and profit for the next few years, taking into account various market development scenarios and the competitive environment.
Planned investments and sources of financing should also be clearly indicated in the business plan. It is necessary to specify what investments are needed to start the business and what are the sources of financing for these investments. This may include own funds, loans from banks, investments from partners or other sources of financing. It is important to provide evidence of the availability of the necessary financial resources or the commitments of investors.
A marketing strategy and a plan to attract customers are the last major component of a business plan. The marketing strategy should determine the target groups of customers, marketing and sales channels, as well as ways to promote the service station and its services. The customer acquisition plan should include specific measures and actions to increase the customer base and retain customers, such as loyalty programs, special offers and advertising campaigns.
Drawing up a detailed and well-reasoned business plan is essential for successfully obtaining a license to trade fuel at a modular gas station. This plan must demonstrate to the competent authorities that the project is economically viable and has a real chance of success in the market.
The next step involves the construction and equipment of the modular gas station. Construction and equipment must meet all technical and regulatory requirements to ensure the safety and efficiency of the site.
The construction of the necessary infrastructure, such as fuel storage tanks, pumps, pipelines and other necessary equipment, must be carried out in accordance with Ordinance No. RD-02-20-2 of September 28, 2020 on the device, safe operation and technical supervision of gas facilities and installations for liquefied hydrocarbon gases. Facilities must be designed and constructed in accordance with the requirements of this Regulation, ensuring that all installations are equipped with the necessary systems to prevent accidents and leaks, as well as emission control systems.
Installation of the necessary equipment and facilities must be carried out by qualified specialists who must comply with all regulatory requirements and safety standards. It is also necessary to comply with all safety and environmental protection measures specified in the relevant regulatory acts and regulations. This includes equipping the service station with fire-fighting systems and means for initial fire extinguishing, in accordance with the requirements of Ordinance No. Iz-2377 of September 15, 2011 on the rules and norms of fire safety in the operation of objects.
It is also important to ensure the availability of petrol vapour capture facilities, pursuant to Ordinance No 16 of 12 August 1999 on the limitation of emissions of volatile organic compounds in the storage, loading or unloading and transport of gasolines. These facilities must be installed and maintained in accordance with the technical requirements of the ordinance to ensure that emissions of volatile organic compounds are minimized and that the service station meets all environmental standards.
Upon completion of the construction and equipping of the modular service station, inspections by the competent authorities should be carried out. These inspections include checking the compliance of facilities and equipment with regulatory requirements and standards. Inspections must be carried out by authorised persons who have established and implemented a quality system according to BDS EN ISO/IEC 17020, as specified in Regulation No 16.
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After you have decided what fuel you will sell and have settled on terrain and equipment, the next step is to bring the site in order with all technical safety requirements and environmental standards set by applicable laws and regulations. This is a key part of the process of obtaining a license to trade fuel at a modular gas station.
In order to ensure the safe operation of the modular gas station, the technical requirements specified in the Ordinance No. RD-02-20-2 of September 28, 2020 on the device, safe operation and technical supervision of gas equipment and installations for liquefied hydrocarbon gases should be observed. All fuel storage and distribution facilities shall be designed and constructed in accordance with applicable safety and technical standards. Fuel storage tanks must be equipped with the necessary systems to prevent leaks and accidents, such as safety valves and leak detection systems. Installation of facilities must be carried out by qualified specialists, observing all the requirements of regulations and safety standards. The service station must be equipped with fire-fighting systems and means for initial fire extinguishing, in accordance with the requirements of the Ordinance No. Iz-2377 of September 15, 2011 on the rules and norms of fire safety in the operation of objects. All facilities and equipment must be subject to regular inspections and technical supervision carried out by authorized persons, in accordance with the requirements of Ordinance No. RD-02-20-2 of September 28, 2020. It is necessary to keep records of the inspections and maintenance of the facilities carried out, and this documentation must be available on request by the control authorities.
Compliance with environmental standards is essential to prevent environmental pollution. According to Ordinance No. 16 of 12 August 1999 on the limitation of emissions of volatile organic compounds during storage, loading or unloading and transportation of gasolines, the norms for permissible emissions of volatile organic compounds (VOCs) emitted into atmospheric air must be observed. Fuel storage and distribution installations shall be equipped with petrol vapour capture and control systems corresponding to Stage II petrol vapour capture (BPM). The service station must have waste collection and management systems in compliance with the requirements of the Waste Management Act and the by-laws. It is necessary to keep records of the waste generated and its treatment, and this reporting must be available on request by the control authorities. Compliance with these technical safety requirements and environmental standards is essential for successfully obtaining a license to trade fuel at a modular gas station. Failure to comply with these requirements may result in the refusal of the application or the imposition of penalties by the control authorities.
Once all other conditions and steps have been met, it is time to apply for a gas station license. In accordance with the Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products (ZARID) and applicable regulations, the following documents should be collected and submitted:
1. Application for registration:The application must be submitted to the Ministry of Economy and Industry for each of the activities referred to in Article 2, paragraph 1 of ZARID. The application form is approved by the Minister of Economy and Industry and must contain:
2. Documents for ownership or use of the object:It is necessary to provide certified copies of a document of title or other document certifying the existence of real or binding rights to use the premises entered as registered address and management.
3. Collateral document:A certified copy of a document on the amount paid or the original of the bank guarantee according to the type of collateral provided, in accordance with Article 17, paragraph 2, item 4 of ZARID.
4. Technical documentation:Technical scheme of the site, including a technological scheme with marked and numbered tanks, pumping stations, process pipelines and installations for loading or unloading. Also, data must be provided on the means of transport with which the activity will be carried out.
5. Certificates of conformity:All equipment and facilities used in the modular service station must have certificates of conformity issued by accredited bodies. These certificates certify that the equipment meets technical standards and safety requirements.
6. Declarations:Declaration on the fulfillment of the general and special conditions for registration, in accordance with Article 17, paragraph 2, item 6 of ZARID, as well as a declaration that the object meets the conditions issued by a competent authority under the Law on Spatial Planning or other relevant legislation.
The preparation and submission of these documents is critical to successfully obtaining the license. Any incompleteness or inaccuracy in the documentation may result in a delay or refusal of the application. Therefore, careful and accurate collection of all necessary documents is extremely important.
Opening a gas station in Bulgaria is a complex process that involves multiple stages and different costs. The cost of opening a gas station can vary greatly depending on various factors, such as location, size and type of station, required permits and licenses, and other specific requirements. Here are some of the main costs associated with opening a gas station:
Based on the above factors, opening a gas station in Bulgaria can cost from BGN 500,000 to over BGN 1,000,000, depending on the specific circumstances and scale of the project. It is important to draw up a detailed business plan and financial justification to ensure the successful implementation of the project.
Opening a franchise gas station in Bulgaria with established brands such as Shell, Lukoil and others involves a number of specific steps and requirements. These large companies provide their franchisees with a business model that includes branding, management systems, trainings and support. This is how the process usually goes:
The first step is to choose the right franchisor. Companies such as Shell, Lukoil, OMV and others offer different conditions and requirements for franchisees. It is necessary to study and compare the different offers.
Once you have chosen a franchisor, you need to contact them and express your interest in a franchise. An application form is usually filled out, which includes information about the potential location of the gas station, the financial situation of the applicant and previous business experience.
The franchisor will pre-evaluate your application and conduct interviews with you to make sure you meet their criteria and requirements.
If your application is approved, a franchise agreement will be signed. This contract governs the rights and obligations of both parties, including franchise fees, license fees, and a share of the profits that will have to be paid to the franchisor.
One of the key steps is choosing a location for the gas station. The franchisor will help you with the analysis of the market and the choice of a strategic location. In some cases, the franchisor may require prior approval of the selected location.
After the approval of the location, the design and construction of the service station follows. The franchisor provides standard designs and specifications that must be adhered to. This includes the design of buildings, equipment and infrastructure, as well as safety and environmental measures.
The franchisor provides training for you and your staff. This training covers various aspects of gas station management, including customer service, safety, inventory management, and marketing.
After the completion of construction and training, the gas station is ready for opening. The franchisor can provide marketing support for the promotion of the new gas station and attracting customers.
After the opening of the gas station, the franchisor continues to provide constant support. This includes consulting, system upgrades, marketing support and performance monitoring. The franchisee must comply with the established standards and requirements of the franchisor.
Franchisees usually have to pay an initial franchise fee, as well as periodic license fees, which can be a percentage of turnover or a fixed amount. In addition, the necessary investments for land, construction, equipment and working capital must also be provided.
Automotive gas supply stations must comply with a number of specific requirements for safety, operation and technical supervision established in the Ordinance on the device, safe operation and technical supervision of gas equipment and installations for liquefied hydrocarbon gases, in force from 23.10.2004. These requirements cover various aspects of the operation and safety of gas stations.
On the territory of gas supply stations, the presence of buildings and facilities related to the receipt, storage and filling of gas, carrying out technical inspections, repair and storage of cylinders and other auxiliary premises and facilities is allowed. The minimum distances between the facilities of the gas supply station, as well as from them to adjacent structures, are determined according to the Ordinance No. Iz-1971 of 2009 on construction and technical rules and norms for ensuring fire safety (Art. 57, para. 1).
The area of gas supply stations should be fenced with a non-combustible lattice fence with a height of not less than 2.5 meters, which provides physical protection and restricts access to facilities (Art. 58).
In the event that the gas supply station is supplied with liquefied gas through a gas pipeline, a shut-off valve with remote control is installed on the gas pipeline immediately next to the fence of the station (Art. 59).
Gas pipelines for the liquid and gas phases of liquefied gas unloading facilities must be installed on trestles with platforms, railings and at least two ladders, ensuring safety during unloading (art. 60).
Gas supply stations in which tanks are filled must be equipped with a device for measuring the mass of loaded liquefied hydrocarbon gas in order to ensure precise measurement and control of gas quantities (art. 61).
The filling or emptying facilities of railway tanks and tankers shall be connected to them by means of grounded flexible antistatic hoses designed for a pressure not less than 1,5 times the maximum working pressure of the stationary metal liquefied hydrocarbon gas storage vessel or the tank. Flexible hoses must be made of a material resistant to the effects of liquefied hydrocarbon gases, to external aging and friction, and must have a destructive pressure not lower than 6,0 MPa (art. 62, paras. 1 and 2).
Gas from overfilled cylinders must be taken to a stationary metal container for storing liquefied hydrocarbon gases in order to prevent the risk of ignition and other hazards (art. 63).
Refueling of vehicle tanks is carried out in designated places on the territory of the gas supply station (art. 64).
The territory of gas supply stations should be well lit, the lighting being located outside the explosive zones. It is allowed to place the lighting installation in the explosion-proof areas if it is in explosion-proof design. The territory of gas supply stations must be adequately protected against the impact of lightning (Art. 65, para. 1-3).
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