Global pressures from within the oil industry has decreased profitability of retail operations which has affected the large oil companies as well as franchisees. A point of differentiation that has been identified is customer service and although all the major players have more or less the same training programmes - they are internally generated. There is very little literature to suggest that oil companies carry out customer perception surveys and to this end, this research has been tailored. Although it is impossible to react to all customer's perceptions, there may be benefits in conducting further research if certain aspects are highlighted by different respondents. Using SERVQUAL as the basic measuring instrument of customer satisfaction, it was adapted to suite the petroleum industry. Caltex Oil SA uses an independent auditor Market Pulse and the main points of this questionnaire were incorporated in the study. It is important to note that the Market Pulse audit is internally generated, measuring the retailer's compliance to Caltex standards. A new questionnaire was then developed to measure customer's expectations and their perceptions of what a good service station should offer. The gaps were then statistically identified and explored, and, possible solutions to close these gaps are generated. / Thesis (MBA)- University of KwaZulu-Natal, 2004.