The demand for retailing petroleum products – including diesel, petrol and kerosene – in rural areas and small towns in Tanzania is growing at a fast rate.
The growing demand of retail petrol stations in those areas is driven by increasing economic and farming activities.
The farmers constantly require diesel in huge quantities in order to operate their windmill to pump water for their livestock as well as crops, and to operate their tractors.
There is a proliferation of trucks that used to transport crops in rural areas that rely on diesel or petrol. The fishers constantly require fuel to power their fishing boats.
Furthermore, due to limited access to electricity, farmers install generators to operate their windmill to pump water for their crops or to power their homes. Also, locals in those areas rely on kerosene to light up their homes.
Most important is the emerging mode of transportation. There are tricycles – or boda-boda, as everyone calls it – and this has increased the demand for retail petrol stations in rural areas and small towns in Tanzania.
Currently, most rural areas and small towns have good vehicle traffic/volume but the surprising truth is that for decades fewer petrol stations have been set up there.
It is estimated that, in some small towns, locals, farmers and vehicle owners have to travel more than 100 kilometers to the nearby town’s petrol stations to get access to fuel.
But with new facilities, roads and factories being built in rural areas, setting up a petrol station over there can get you a high return on investment.
In reality, there is a great demand of petrol station in rural areas and small towns. Even the Energy, Water and Utilities Regulatory Authority (EWURA) has lessened the requirements for starting petrol stations in rural areas to reduce investment cost, start-up capital and project cost.
The aim is to encourage investors to set up petrol stations and meet the huge demand of fuel in rural areas.
Retail Petrol Station Industry Outlook
Although competition has increased over the past few years, fuel sales continue to increase annually. The most intense competition is in larger urban centers, because most entrepreneurs are looking to have fuel stations in the city centers and more bustling urban parts of Tanzania. This leaves opportunity for independents in smaller rural settings and small towns.
So, setting up your small petrol station in up-country areas and small towns is a successful model for entrepreneurs looking to benefits from the fuel station business in Tanzania.
A Detailed Feasibility and Project Report on Starting a Profitable Small Petrol Station with Two Pumps in the Rural Areas and Small Towns in Tanzania
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In the full report you will learn the following:
- What is the structure of a small petrol station business?
- What is the petrol station industry size and growth?
- What is the outlook of petrol station industry?
- What are the licenses, permits and certification required for setting up small petrol stations in rural areas?
- What is the working capital required for setting small petrol station in Tanzania?
- What are the built-up requirements for small petrol stations in Tanzania?
- What is the total project cost for setting up a small petrol station business in Tanzania? (This includes the breakdown of such start-up capital and project cost for setting up petrol stations?)
- What are the items of equipment and machinery required for setting up a small petrol station business? And what are their prices and where can you buy them in Tanzania?
- What is the minimal size of land required for setting up a small petrol station with only two pumps?
- What is the profit margin and income for a small petrol station business?
- What are the requirements as regards utilities, electricity, water, salaries and overheads for setting up a petrol station business?
- What are SWOT analysis for setting up small scale petrol station in rural areas and small towns in Tanzania?
- What are the personnel (manpower) requirements for starting a small petrol station business?
- What are the market opportunities and market assessment for setting up a small petrol station business?
- What are the petrol station industry trends?
- Who are the suppliers of petroleum products/fuel, machines and equipment for setting up your small petrol station business?
- What are the projected balance sheet for petrol station business?
- What are the marketing strategies for small petrol stations in rural areas or small towns in Tanzania?
- Since a petrol station is prone to theft, how do you control theft in your business, so that you can see good returns on daily sales?
- What are the challenges associated with running a small petrol station business, and how to overcome them?
- What is the financial projection for small petrol stations?
For the complete report for setting up and running a LP Cooking gas business in Tanzania, make a payment of $100 (or its equivalent in Tanzanian Shillings TZS 200,000) through Tgo pesa, M-pesa to this number: +255655376543.
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