Are You Making These Mistakes In Your Petrol Station Business?


  1. Building In an Unproven Location

The success or failure of a petrol station largely hinges on its location. Many investors and entrepreneurs dive headfirst into buying land and constructing without thoroughly assessing the potential profitability and performance of the location.

Later on, they find themselves scratching their heads, wondering why their station isn’t performing as well as expected.


Before pouring capital and time into construction, it’s crucial to conduct a detailed feasibility study on the proposed location.

This involves assessing factors like potential profitability, accessibility, visibility, and analyzing competitors. By doing so, you can mitigate the risks of investing in an unproven location and avoid wasting resources.

  1. Trying to Do Too Much

In the pursuit of maximizing revenue, some investors attempt to incorporate numerous non-fuel products and services, such as supermarkets, restaurants, and office spaces, into their petrol stations. While diversification is a sound strategy, doing so without proper planning can result in squandering significant capital.


It’s advisable to start by focusing on selling fuel and gradually expanding to offer additional services based on real demand. This approach ensures that resources are allocated efficiently and that expansion efforts are sustainable in the long run.


  1. Ignoring Competitors’ Pricing

Customer decision-making often hinges on pricing when choosing one petrol station over another. Therefore, it’s essential to track competitors’ pricing closely. By keeping tabs on competitor pricing, you can strategically set prices that are competitive and attractive to customers in your location.


In summary, avoiding these common mistakes can greatly enhance the chances of success in the petrol station business. Prioritize thorough location assessment, focus on sustainable expansion, and remain vigilant in monitoring competitor pricing to stay ahead in the market.


Hussein Boffu runs a consultancy helps entrepreneurs like you build something you are proud of. Reach out to him via email at or by calling, texting, or WhatsApp at +255(0)655376543.