It doesn’t take an advanced degree to recognize that running any kind of oil and gas business can skyrocket your financial status at alarming rate.
This is because the whole aspect of human living as far as Tanzania is concern depends on oil and gas. Oil and gas are essential as food, clothing, and water to a human being.
Take for instance, at home, for example, the food you eat every day are cooked with kerosene (1k) or cooking gas (LPG).
Public transport or your personal car run by oil-related products (diesel, petrol, engine oil).To cope with the power-failure problem in the country, homeowners and business install standby generators powered with diesel (AGO) petrol(PMS). Industrial equipment and heavy machines and factories cannot function without oil-related products.
Today, whether the bad or good economy, still consumer buy fuel (diesel, petrol, kerosene, cooking gas). Whether oil prices go up or down, people flocks into petrol stations to buy fuel in the petrol station.
People who are into oil and gas business or investment are seldom struggling with finances because they sell necessity to communities
If you are wondering how you can join into this line of business, the articles will cover the detailed cost and requirement to set up petrol station business in Tanzania.
How Much Does Petrol Station Make Per Day In Tanzania
The margin is high in the filling station business, That is all depot owners, and oil importers in Tanzania are also run petrol station business to maximize the profit.
The profit margin varies depending on various factors. For example, if you petrol station is situated in an area with unreliable power supply, you will certainly use generators which cut your profit margin.
Onoher reasons affect profit in petrol station business is located. A roadside petrol station earns much than one located in the are fewer business activities.
Also, a supplier to whom you source affect your margin. Some supplier has a room for negotiation and is happy to offer a discount specifically if you enter the long-term agreement.
Technically speaking, a petrol station earns TZS 100-210 as a profit per liter. Consider you make TZS 210 a liter
If you sell 5000 liters a day have TZS 210×5000= TZS 1,050,000 In a month you get profit of 1,050,000 ×30 days= TZS 31,500,00.
That is the average profit you can make after deducting all expenses, And if you obtain a wonderful supplier you make big payoff since they have reasonable prices.
Requirement For Set Up Petrol Station Business
Location is a lifeblood of your petrol station business. Make sure your land has enough space to accommodate reasonable numbers of motorists.
Not necessarily to the petrol station a busy city with high traffic congestion such Dar es Salaam.
You can set up petrol station wherever you want as long as you are sure that there is high demand for the fuel.
2.Permit and license
Petrol station business is by law and regulated by government agency named Energy, Water and Utility Authority (EWURA)
So you have to apply for the construction permit, and retail license from the EWURA.
You will then must have to get a permit form National environment management council for the
Another government to deal with is Occupational Safety and Health Administration (OSHA)
Don’t forget to register your business with Business registration and licensing agency (BRELA) and Tax authority (Tanzania revenue authority)
Another important segment of your petrol station is pumps, storage tanks, offices, and canopy,
If you start out with a limited budget, you can start with two pumps one for diesel and the other for petrol. Tank for storing your fuel, I strongly suggest you start with two storage tanks with the capacity to hold 9000 liters and the other 4500 liters. You will then add more pumps and storage tank as your business grows
You can’t run the petrol station business on your own. If you want to do it all by yourself you will sacrifice your social life with family and friend. Your team include:
The petrol station is the business that everyone wants to steal from you. From robbery, your employee and customers who drive away without paying.
To stand out install CCTV camera, and make sure you fuel station has safeguard 24/7.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. Attendants are the least-paid and overworked employees in many petrol stations. They work long hours. The little salary they generate from you makes them think of numerous tricks to add to their income. So compensate them with fat salary can work a lot
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
Every good business has its setback. The potential risk associated with petrol station is robbery and fire outbreak. However, you can minimize the risks by employing all safety measure, specifically during delivery of the fuel in your station. And Hiring security and get insurance
So now how to get into this recession-proof business in Tanzania?
• How much does it cost to build a petrol station?
• What are the requirements to set-up a filling station in Nigeria?
• How much capital is needed for starting up a filling station?
What are costs of the equipment and where to find them in Tanzania?
What are the license and permit you should have to go into this venture?
Those are few of the very many questions you may be asking yourself now. But that’s fine.
In this book, you’ll learn:
- Three ways to start a filling station business in Tanzania, and the easiest among them.
- The steps and procedures to obtain licenses and permits to setup a petrol station.
- The list of certificates you need to run a petrol station.
- The cost of setting up a petrol station in Tanzania.
- The equipment and machines you need to have a complete filling station, their prices, and where you can buy them.
- The factors determining the profit margin of petrol stations.
- Three ways to become a dealer of oil companies in Tanzania.
- How to setup a petrol station using the brand name of major oil companies in Tanzania such as Total, PUMA, etc.
- The marketing strategies you should employ for your station.
- How to control theft and avoid robbery in your station. (Ignore this and watch robbers flock in every now and then.)
- The challenges associated with running a petrol station.
Download this guide for a token of TZS 50,000 now.
To buy the book, you can follow this link and order it on amazon ( Petrol Station Business Guide On Amazon ) or make a payment of TZS 50,000 through Tgo pesa, M-pesa to any of these numbers
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The book will be in PDF format, delivered digitally via email. There are not physical copies of the book sold at this time.
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Once a payment has been made, you will receive an email, with attachment of your purchased copy which you will obtain a copy of the PDF book.
Meet the Author
Hello, my name is Hussein Boffu, and I’m the author of How to Start and Run a Profitable Petrol Station Business in Tanzania. I’m also the founder of TanzaniaPetroleum.com
I am an entrepreneur specializing in the oil-and-gas supply chain. For quite some time now, I’ve been consulting a lot of businesses, both local and international, regarding starting a business in Tanzania’s oil and gas sector.
I have been approaching and talking to executives, and have been selling goods and equipment to various oil-and-gas companies in Tanzania.
What Others Are Saying About Me
“I was amazed when I first found his informative article on the internet. My reaction? Wow. It was the absolute best anyone could offer the petroleum industry. So, I emailed him for a face-to-face interview. And we met. Seriously, I have a strongly feeling about him. Hussein Boffu enlightens people who are passionate about doing business in the oil and gas sector in Tanzania.” –Mussa J. Mlindwa, Commercial Assistant, American Embassy, Tanzania.
“I have found Hussein to be a veritable fountain of information with a vast and useful network of senior contacts when I first sought information about the Tanzania’s oil and gas industry. Also, Hussein has a newsletter and website that is arguably one of the international community’s first stops when considering investment into Tanzania.” –Daniel