Tanzania has been faster to develop in terms of LP Gas Growth. With favorable government initiatives, investors can get solid returns on this investment through the rapid growth of LP Gas consumption in the country.

You can find opportunities for LP Gas in households (families) hotels, schools, restaurants, clubs, mission and lodges, and commercials clients.

The market for liquefied petroleum gas(LPG) is growing at 25 percent. The LP Gas business has attracted over 6000 dealers and companies in Tanzania. And cooking gas retail shops are in every street corner.


I often wonder, how do they make a profit seeing intense competition. But the best part is that, as the number of the household switch to this fuel, demand increase and more customers arise.

Read also: A complete Small Investor’s Guide on How to Set Up Mini Fuel Station With Two Pumps Anywhere in Tanzania’s Rural Areas With Only TZS 55 Million

Outlook

Liquefied petroleum gas(LPG) market (popularly cooking gas ) is expected to grow by fifty percent in the near future due to the wide adoption of LPG as a cooking gas from residential replacing other traditional cooking fuel such as charcoal and firewood.

Furthermore, favorable government initiatives in Tanzania to promote liquefied petroleum gas(LPG) as a clean source of energy for cooking with special focus to discourage deforestation and reduce the use of firewood and charcoal is expected to increase the demand for liquefied petroleum gas in Tanzania.

Three Ways to Get Started With Liquefied Petroleum Gas (LPG) Business In Tanzania.

The following are three ways to get started with the liquefied petroleum gas business are:

1. Small Scale: The first option to go into the LP Gas business is to set up a retail shop in highbrow areas. Location is a key driver to success in small scale LPG business. To start small scale LP gas business you need 35 pieces of gas cylinders(Preferably 15Kg and 6Kg gas cylinder), regulators and hose, and weighing scale.

2.Medium-scale LPG Business: This is also known as a super dealer. Your job is to acquiring cylinders from LPG marketers and transporting them to last-mile dealers. Super-dealers vary widely in size, with the largest managing tens of thousands of cylinders at one time, while others only own a few hundred.


3.Large Scale LPG Business: It involves the installation of a liquefied Petroleum Gas plant. LPG filling plant is a lucrative investment opportunity that needs a lot of strategic planning and high initial capital requirement. The good news is that banks are aware of the potential of this business that is willing to give out the loans. So with a proper business plan, you can get a loan to start this business.

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