Look around your city, and you will discover many fuel filling stations are running. Driving around the highway in your town, you will see more than one fuel filling station under construction or already serving the community.
The simple truth is that the establishment of a new fuel station is on the increase in Tanzania. This is a living testimony of how the petroleum marketing industry contributes to Tanzania’s economic development and employment creation.
The proliferation of businesses in the petroleum marketing industry transforms communities and cities.
The establishment of petroleum infrastructures is a vital source for livelihood in the cities and country.
It is estimated an average service station creates employ over eight people. Large service stations present an opportunity to offer complementary businesses like garages, coffee shops, restaurants, supermarkets, and ATMs employ more than 40 people and bring the services closer to the community.
During the fuel station construction, There are also income-generating opportunities, such as the procurement of local contractors and equipment.
Education and Training
Retail service station owners, primarily that works in collaboration with prominent international oil marketing companies, provide training to staff on how to handle petrol station equipment, customer services training safely, and gain knowledge of the petroleum products, which help them build and expand their understanding that they can use for the rest of their lives
Wealth creation and entrepreneurship
Covid-19 and in the uncertain times ahead make sense to have a particular investment that guarantees appreciation. When you construct a fuel filling station, start LPGas, or set up a lubricant oils shop, you sell necessity and not luxury. Clothing shops are empty.
Hotels and restaurants are running away. Look again around your city. How are many fuel filling stations closing this time? You will see that all petrol stations are working. Where most businesses are declining, the petrol station business continues to expand rapidly. But why is that? The answer is pretty simple.
This business thrives even in a receding economy. Regardless of the status of the economy, people drive. Commercial and transport vehicles will look for a place to fill their car tank with fuel.
So, a petrol station will never run out of business in any economy. A petrol station makes a considerable income, and more and more people have found out about this lucrative business and jumped into it.
Although investment opportunities in the petroleum sector are lucrative, investors should conduct a feasibility study before pouring their money and resources into the project to reduce risk.
The feasibility study will outline whether there is a market need, identify infrastructure requirements, determine the project costs, includes a financial analysis to assess the economic feasibility of the proposed project to determine whether desired return on investments could be reached.
Furthermore, when you step out in your quest for capital, both banks and investors will ask for your business plan. So it would be best if you had a comprehensive petroleum business plan.
Given the importance of petroleum products in a growing economy like Tanzania. The petroleum marketer plays an essential role in improving the availability of the products, contributing to economic development in Tanzania through wealth and employment creations.