If you are looking to expand your energy business in Tanzania and Africa to maximize company revenue, starting a petroleum wholesale business can be a wise option.
As a petroleum wholesaler, you will be able to sell petrol and diesel to other fuel retailers (petrol station operators), businesses, and government entities.
Your company’s revenue will come from direct sales to filling stations and industrial clients, as well as long-term contracts with businesses and government agencies.
Entrepreneurs often expand from fuel retailing to petroleum wholesale because the profit margin per litre in wholesale is higher than in fuel stations. Selling fuel to bulk consumers is also highly profitable because they purchase larger quantities compared to individual motorists.
This aligns with EWURA statistics, which show that bulk consumers are the largest segment, accounting for 46% of all fuel consumption, followed by retail consumers (34%), power generation (7%), aviation (7%), and mining (6%).
You do not need to have your own storage facility to operate a petroleum wholesale business in Tanzania. You can enter a hospitality agreement with depot owners and transport fuel to your region for distribution.
Entrepreneurs and investors who want to operate a petroleum wholesale business in Tanzania should apply for a Wholesale Petroleum License from the Energy and Water Utilities Regulatory Authority (EWURA).
