If you want to build a petrol station, location is a key determinant whether your petrol station business will fail or succeed.

If you make a mistake in location, the business is already a huge mistake.

For your petrol station business to be set up, you need to set up in the best location in your target city. The biggest mistake people make is this: they just purchase land and rush into building petrol station without doing a little homework.

They spend a lot of money, time and effort building a petrol station only to find that the station is selling a little volume from the market in trading areas.

The petrol station business should have the advantage of being in an easily accessible and highly visible location.

No matter how good your marketing strategies are, if you build a petrol station in a non-strategic location, you will make little sales.

If you want to see your petrol selling huge volume of fuel in the marketplace, you need to evaluate the marketability of your area. Before you take the next big step of purchasing or build a petrol station, you should evaluate the marketability of your site.

You need to determine whether there is a market for selling petroleum products as well as who the target customers are. You need to determine who your competitors are and how you will stand out in this competitive business. You need to determine how much volume the station is expected to extract in the trading area.

Read also:7 Steps Involved in Starting a Profitable Petrol Station Business in Tanzania

Before you pour your blood, sweat and tears as well as a lot of time and resources into building a petrol station, you should evaluate your location and do a little homework to know whether your location will sell before you go into the trouble of building petrol station.

You will need to answer “Yes” to this question: “Will a petrol station sell in this area?”

It’s just a matter of finding answer to these questions:

  • What are future development plans in your area? And what are the economic activities that may attract traffic?
  • How much volume of diesel, petrol and kerosene the station is expected to sell in trading areas.
  • Traffic count or estimated quantity of cars and vehicle per days.
  • What are the competitive advantages of nearby petrol stations?
  • What are the land parameters to comply with and the legal requirement?

You should already have much of this information if you have been doing a solid home work. Evaluate your land. If your evaluation reveals that your location will not sell or will not sell well enough, let it go or find a way to make your location profitable.

You can outsource this task to a consultant like us to evaluate the marketability of your area and compile a report that will help you whether your petrol station will sell or not.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

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