Investment in retail fuel filling stations is lucrative that need a lot of strategic planning . If you conduct a poor research  and buy the property in  wrong location you could face years of no growth due to low sales.

It doesn’t matter what your budget is, you need to ensure you choose locations that will offer long-term and sustainable  investments. The successful investor are the ones doing solid research and surrounding themselves with a reliable team.

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.

To make the best investment decision avoiding wastes of resources(time and money) investors need to collect the following information in their  trading area prior to construction:


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?”

To make the best investment decisions,  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?
  • How is easy to access and see the site (accessibility and visibility of your site)


Here are eight steps in starting a petrol station business in Tanzania


1) Finds the right site to meet your project objectives.

2) Organizes full surveying and subdivision services.

3) Undertake detailed feasibility studies including a comprehensive design and cost assessment, Market research, sales forecast, financial planning, return on investment;

4) Obtain development approvals (Building permit, NEMC environmental License, construction approvals, Osha, operating license etc.);

5) Prepare full working drawings and project specifications including engineering services and structural plans to ensure compliance with the industry standards early in design stage;

6) Obtain building quotes;

7) Appoint master builder on a fixed time and price contract, checks all contractual arrangements and oversees the
construction to completion;

8) Sources competitive construction and development finance for its client where necessary.

I hope this helps.

At Tanzania petroleum we are committed to connect entrepreneurs with precise industry knowledge they need. So to help them make the best decision and driving progress.