We all know Tanzanian oil and gas sector is the industry with amazing opportunities. Unfortunately, only a few have access to information regarding emerging opportunities in the gas sector. And the sad reality is this, people having this information are unwilling to share with others. I wonder why there is restricted information in this sector.
Okay, that is the talk of another day. The topic at hand is how to set up petrol station in Tanzania.
Article explains how to start petrol station with detailed requirements on initial capital needed to start this business, profit potential you make in this business and tips to succeed in this investment.
Let’s get started
Despite the fact that Tanzania has not recent oil discovery but we are the largest consumer of petroleum products.According to international energy agency, Tanzania consumes 35,000 barrel of oil refined products in 2013.Is for this reasons petrol station is lucrative business in Tanzania.
Why petrol station is the fantastic business
In business sense, An outstanding business is the one which offers products or solutions that are in serious requirement by people This is true for this investment. Why? because everyone is in contact with oil-related products(diesel kerosene and gasoline)
Thousands of automobile, vehicle, and motorbike in Tanzanian run by oil product, Factories, organizations, medical centers, educational institutions, media house all have generators powered by diesel fuel. Not to mention Media house, and town halls.
With the growth of Tanzania economy by 6.5 percent indication that many Tanzania would own their own cars and generators since because economic growth is proportionate to the enhancement of living standard of the individuals. And low-income earners will start using kerosene instead of firewood and charcoal.
Guess what if you start your own petrol filling station in Tanzania? The reason is simple: you make windfall profit
The demand of this business is huge even significant supplier (such as Puma Energy, Total, Oryx) often look for individuals who need to be marketer to fund and give him resources to attract for this business.
How much profit you create from this business
If you are looking for investment with excellent return then petrol station is a best investment avenue for you. In terms of profit, you get not less than 210 Tsh per liter. Consider you get profit of 210 Tsh a liter
If you sell 5000 liters a day you get edge profit 210 *5000=1,050,000Tsh
In a month you get profit of 1,050,000 *30 days=31,500,000 Tsh. Can you imagine?
That is the lowest profit you can make after all expenses, And if you obtain a wonderful supplier like PUMA Energy you make big payoff since they have reasonable prices.
Tips to achieve this business Initial Capital Start with scale you’re comfortable, but for completely average petrol station, preliminary investment ranges from 450-500 million
Land Is essential to purchase land with enough space for vehicles, The prices of land differ from one place to another And fantastic new is this, petrol station not really essential to be in the city with inhabitants like Dar es Salaam, you can also position you fuel station in distant locations whereby another supplier is hardly ever to reach.
In regard to risk is the decrease of oil quantity, because Oil has an inclination to reduce in volume through evaporation especially during hot times so of loss of 100 to 1000 liters per month is commo
Permit and license
Oil and gas business is regulated business register your business (BRELA) Business registration and licensing agency in Tanzania BRELLA and get approval from EWURA ,TRA and OSHA
To prevent loss and harm of your property hire 3-5 people who will take care of the petrol station
Attendants- Hire people to provide services of filling cars and truck Manager- Hire one person who would handle and control all activities in the petrol station you can also hire cashier to assist in handling expenses and income
Regardless of the present oil price recession in the global market, petrol filling station is still profitable business in our nation since oil prices variation is the regular scenario when you take part in any oil and gas business Star now to invest in Tanzanian gas and not someday because next day will never arrive
Petroleum Geoscience Graduate