Are you aware that many petrol station businesses are struggling to make sales because of the bad site location?

Do you know that many petrol stations are losing to competition because of poor planning before the set up of the project?

In a rush to make money. People purchase land and rush into a building or buy petrol stations. They spend a lot of money time and effort building a petrol station without doing a solid homework.

Which in turn hurt their ability to compete with their competitors, which in turn draws in few customers, which in turn faces cash flow challenges and decreases their ability to grow fast as they would like.

This article discusses how to know the profitable petrol station site location so that you can get an edge over the competition, stop losing money, attract more customers, become profitable and accelerate the growth of your fuel station business.


                   Characteristics of Profitable Fuel Filling Station Site Location

In the retail fuel station business, the location may determine whether you can draw in customers. 

If you have a location in mind that is vacant land or a corner of a busy intersection. Here are some considerations when identifying the profitability of the site

1.Traffic count. Profitable petrol station location is determined by checking traffic count the road in front of you Determine quantity and type of cars and vehicles per day passing in your location.

By collecting data you will estimate the fuel volume that you expect to sell in your trading areas and project the monthly fuel volume that your location might sell. 

Read also: 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

This will also identify whether there is an opportunity to achieve greater volume in the future. It will also aid you in determining infrastructure requirements such as fuel storage tank’s capacity to buy for your new site  

2.Competition: It is crucial to understand who your closest competitors are in your trading areas and identify their strengths and weakness and what volume they are achieving.

If there already other petrol stations existing in the same trade area. Identify their financials and what volume they are achieving. 

 Identify how did they achieve those financial? What strategies are they using and who are their suppliers?

3.Visibility:  How easy is it for the motorist/customers to see the location. Check visibility from the road time taken for drivers to slow down to enter the petrol station

4.Accessibility:  How easy is it for your customers to get to the location

5.Security  How safe is the location. This is critical to control theft. Ignore this and watch robbers flock in now and then.

Whether you are new to the fuel industry, add to your portfolio of fuel filling stations or look to buy the fuel stations that already exist in the market. Selecting the right location for your fuel station is crucial to maximizing profit and ensuring your business’s long-term success.

So if you are thinking of opening a new petrol station. I would recommend you get a feasibility study before setting up of petrol station.

There is a lot goes into assessing the feasibility of petrol station site. But no need to stress. My team has many years of experience with all these technicalities and is passionate about helping you with conducting a feasibility study for your location.

Hussein Boffu is a business consultant with experience in the oil and gas(energy)industry, business strategy development, business planning, research, due diligence, sales and marketing, project coordination, supplies and equipment procurement. He has a passion to help entrepreneurs and businesses in the energy sector to build, grow, and develop sustainable, profitable enterprises. So that they can create more employment and provide a good life for their families, employees, and communities. He can be reached via or Text/Call/WhatsApp +255(0)655376543