Gazprom Neft Director of Regional Sales Dmitry Shepelsky: Our network of filling stations to grow in line with Russian fuel market
Dmitry Shepelsky
Photo: Press-office
Russia's fuel market has been growing in recent years and demand for petroleum products in the country is increasing. According to the Avtostat analytical agency, the number of registered cars in Russia exceeded 55 million in 2024. At the same time, the requirements for refueling vehicles are also growing, as the customer wants to buy fuel only of high quality, and prefers to get all possible goods and services at filling stations. Director of Regional Sales at Gazprom Neft Dmitry Shepelsky told Interfax in an interview about trends in expanding the filling station chains by domestic oil companies, small-scale wholesale and major B2B clients, as well as franchise, fintech and electric vehicle charging at the filling stations.
Q.: A filling station has long ceased to be just a facility for refueling a car. Now you can eat here, buy goods and spend your time comfortably. What are the prospects for developing the filling station segment in Russia in the years to come?
A.: As a whole, the Russian fuel market can be characterized with three key descriptors - mature, competitive and growing. Over the past 10 years, it has demonstrated moderate growth - not explosive or volatile, but very gradual due to steadily increasing demand for petroleum products. Despite developing fuel alternatives like gas and electricity, industry participants and experts unanimously forecast that domestic consumption will grow within 4% over the next 10 years.
In terms of sales structure, the fuel market is divided into three main segments: large-scale wholesale, small-scale wholesale and retail. The latter segment deals with the widest audience of millions of motorists across the country. The requirements to the quality of fuel and services at filling stations are high, and retail tries to meet these expectations.
The future of fuel retail lies in enhancing comprehensive customer offerings. Fuel quality, modern services, cafe and store assortments, and alternative refueling options are becoming key competitive factors. Today, customers want to fill up with only the best gasoline and access a full range of services at filling stations, and this is the direction stations will develop in.
Q.: Will the presence of oil companies and vertically integrated companies on the filling station market continue to grow?
A.: However, similar to grocery retail, fuel retail has seen consolidation trends over the past 10-15 years. Both large chains and regional stations see this as an opportunity to improve efficiency and resilience. But this trend is not universal. Major independent networks continue to thrive independently - they have their own customer base, so we do not expect them to merge with oil companies in the near future.
Smaller operators with just a few stations, meanwhile, increasingly opt for franchise partnerships with vertically integrated oil companies. Operating under an established brand with ready-made services provides a competitive edge for small businesses.
Q.: How has Gazprom Neft's Russian chain of filling stations expanded in recent years? And does the company plan to buy other filling stations?
A.: Two years ago, we operated 1,476 stations across Russia. Today we have 1,549, including both company-owned and partner stations under our brand. We are not pursuing massive expansion, but rather targeted growth focused on efficiency.
Gazprom Neft leads the retail market with average daily fuel sales of 19.3 tonnes per station. We intend to maintain this leadership while prioritizing customer loyalty. These two metrics guide our network development strategy.
Q.: Will you build new filling stations? What are the goals of Gazprom Neft's fuel retail development strategy?
A.: The company continuously invests in network upgrades - constructing new stations, modernizing existing ones, developing IT services and so on. Each new station undergoes rigorous feasibility analysis considering multiple factors, primarily local demand for fuel and ancillary services.
Our network of filling stations will grow in line with market conditions. The strategy involves gradual expansion while maintaining quality and demand focus.
One of the growth points for our retail business in the medium term is the transition to new filling station formats. For example, we are currently actively expanding self-service areas at our stations. Using a terminal, drivers can pay for both fuel and related goods on their own. Of course, there is always a consultant in the hall to help customers make a choice and understand the technology. A pilot phase of this filling station format was recently completed - we received a lot of positive feedback, and customers are satisfied. At present, Gazprom Neft has 86 such filling stations, mainly in Moscow and St. Petersburg. By the end of 2025, there will be more than 270. We will start with Central Russia and then expand to other regions. We plan to implement our self-service services primarily at the busiest stations.
Highway stations represent another priority. As Russia upgrades federal highways and road tourism grows, motorists increasingly view highway stations as rest stops rather than mere refueling points, driving demand for roadside services.
We are actively participating in this transformation. In 2024, we launched 24 Gazprom Neft stations along federal highways, including four on the new M-12 route. Over the next two years, we will increase M-12 stations to 10, constructing two new stations on the Moscow-Kazan section and four between Kazan and Yekaterinburg.
Q.: You mentioned that partnerships with independent players are developing through franchising most frequently, and this model has proven to be effective. Is Gazprom Neft ready to expand in this area?
A.: Gazprom Neft has two types of partnerships: a classic franchise under the Gazprom Neft brand and a smart franchise - the OPTI filling station partner network. Both areas are working well, and we intend to develop them further.
Through such partnerships, we are entering new regions: we are developing our partner's business together, building logistics, and expanding service capabilities for the convenience of customers. The partner receives reliable fuel supplies and expert support in terms of both the core business and the sale of goods, marketing, and IT.
Q.: In what Russian regions might Gazprom Neft filling stations appear in the next ten years?
A.: We are developing our network where there is sufficient demand, competitive advantages, and clear logistics. This mainly concerns regions where the transport reach from Gazprom Neft's refineries allows us to deliver fuel rapidly and steadily for subsequent sale. Based on these premises, our priority is the Volga basin region, Siberia, and the north of Russia's European part.
Q.: Does Gazprom Neft fully meet the fuel needs of its own network of filling stations? Alternatively, do you purchase additional volumes from third-party producers?
A.: We meet 100% of the needs of our network of filling stations with our own petroleum products. This allows the company to guarantee fuel quality throughout the entire logistics chain, from the refinery to the filling station.
Q.: How actively is the B2B customer sector developing?
A.: I would like to divide B2B clients into those we supply through small-scale wholesale and those fueling at our stations using fuel cards.
Gazprom Neft handles significant small-scale wholesale volumes - over 8.5 million tonnes annually in Russia. A substantial portion supplies independent fuel station networks. Also, last year we expanded supplies to industrial enterprises and launched turnkey on-site refueling services for them under our Fuel Provider program. It completely relieves industrial clients of concerns about fuel procurement, logistics and storage. We handle everything - installing necessary infrastructure like industrial fueling stations at client sites and implementing digital services for fueling management and planning. The service is in high demand, with Gazprom Neft already supplying major metallurgical and mining companies in northwest Russia, the Urals and Siberia.
The retail B2B segment primarily serves transportation companies. With Russia's road freight transport growing steadily in recent years, we see strong potential in this area. We currently serve 68,000 B2B clients - a 10% increase over two years. About 70% operate fully digitally, managing all processes through mobile apps or web accounts without involving our managers. This represents the most promising and technologically advanced B2B interaction format.
Digital services are also developing for individuals. Back in 2019, we launched a mobile app for motorists, offering a new customer experience model: no need to go to the cashier, all operations are carried out remotely on a smartphone. Today, our app is already a real marketplace, used by every second customer of the Gazprom Neft filling station network. In addition to the basic function of paying for fuel, it offers the opportunity to purchase coffee, goods from filling station shops, motor oils and car accessories, take out insurance, book a car wash, tire fitting, and even maintenance.
Q.: Traditional markets face competition when new fintech players emerge. Does this kind of competition change the fuel retail market?
A.: You can compete, or you can work together. We choose partnership. Fintech companies have large client bases, and we are ready to integrate our fuel service into their apps. This is beneficial to both parties: users get quality service, while banks get additional value for their clients. We are currently cooperating with T-Bank, Alfa Bank and a number of other major players. Therefore, this is not competition, but a partnership - we provide the fuel service for banking clients.
Q.: Gazprom Neft is one of the major suppliers of petroleum products to the stock exchange. Does the company plan to increase its exchange sales beyond the standard?
A.: Let me start with our approach to exchange trading: Gazprom Neft is a responsible supplier and surpasses the standard fuel sales and the requirements of regulators. We sell at least 15% of motor gasoline output and at least 16% of diesel fuel on the exchange.
The exchange is one of the channels for sales. It is important for customers who need direct access to large fuel volumes, and we provide this access.
Q.: The delivery of large fuel volumes requires infrastructure. Gazprom Neft has been building up its oil depot capacity for several years. At what stage is this process now?
A.: We have made a great effort to create a modern infrastructure. Gazprom Neft currently operates 18 terminals and oil depots with annual handling capacity of 8.5 million tonnes, along with 26 testing laboratories.
Over the last six years, four terminals have been built - Gladkoye in the Leningrad Region, Turinsky in Tyumen, Nizhny Tagil in the Sverdlovsk region and Kemerovsky in the Kemerovo region. Construction of a terminal in Chelyabinsk and large-scale technical re-equipment of another ten oil depots are in the final stages. In 2024, the Yevsinskaya oil depot in the Novosibirsk region was upgraded. Now all facilities included in the terminal infrastructure development program fully meet the requirements for storage quality, safety, automation and comfortable working conditions for employees.
Overall terminal handling volume has grown nearly 30% over six years, with average per-terminal throughput almost doubling. We have reached the optimal scale for our terminal and logistics network to ensure stable fuel supplies across regions.
Q.: Gazprom Neft plans to increase the number of electric vehicle (EV) charging stations at its filling stations to 140 in 2025. What are the prospects for developing this type of business in the long term?
A.: Gazprom Neft began exploring this segment several years ago. We have studied international experience and closely monitor Russia's growing electric and hybrid vehicle fleet.
While this segment is still developing in our country, demand for charging services is rising noticeably. Based on current growth trends, we estimate that charging stations could capture around 10% of the fuel market in 10 years. We are actively developing this segment to serve these customers.
Industry players take different approaches to developing charging infrastructure - either independently or through specialized partners. Gazprom Neft chose the independent route primarily to maintain direct customer relationships and service quality control.
The company has established its own charging brand called Rozetka. By late 2024, Gazprom Neft's charging network reached 100 stations, located not only at company fuel stations but also at partner sites near offices, shopping centers and airports.
Q.: Coffee remains the most popular ancillary product at filling stations. Isn't it time to measure its sales at filling stations in liters or tonnes, like fuel, rather than in cups?
A.: Regarding non-fuel sales at stations, Gazprom Neft's ancillary business revenue grew approximately 60% over three years. Our stations have evolved into retail hubs where ancillary services, convenience goods and digital services play an increasingly important role.
Sales of Gazprom Neft's private-label products (PL) are also growing, with nearly 630 product varieties currently available. PL products accounted for 38% of non-fuel revenue in 2024, up from 33% in 2022.
As for coffee, it remains the second-best-selling item after fuel. Last year we sold 40.4 million cups - more than one cup per second! An extremely popular product. And it is probably an interesting idea to measure "pouring" of coffee in liters or tonnes.