Liquefied Petroleum Gas (LPG) consumption in Cameroon has been rising steadily for decades. Usage grew from about 21,000 tonnes per year in 1995 to nearly 103,000 tonnes in 2017, largely driven by the ongoing shift among urban and peri-urban households from traditional biomass fuels such as firewood and charcoal to cleaner and more efficient cooking solutions.
This transition is expected to continue. Total annual LPG consumption for household cooking is projected to reach 269,699 metric tonnes by 2030. In addition, Cameroon’s national energy policy aims to ensure that LPG becomes the primary cooking fuel for at least 58% of the population by 2030. Achieving this ambitious target will require significant expansion across the entire LPG value chain, including production, importation, distribution, transportation, storage, and retailing.
To meet growing demand, more entrepreneurs and investors are needed to participate in the LPG business ecosystem in Cameroon. The sector offers attractive commercial opportunities, long-term growth potential, and an essential role in advancing clean energy access, public health, and environmental protection.
Below are six of the most promising and profitable LPG business opportunities in Cameroon.
1. LPG Production and Importation
Official data shows that local LPG production currently meets only about 20% of national demand, estimated at roughly 30,000 tonnes per year. This means that the remaining market demand is supplied through imports, creating substantial room for new investors interested in LPG production and importation.
Entrepreneurs may explore roles such as:
- Importing bulk LPG for domestic distribution
- Partnering with international suppliers for long-term supply contracts
- Investing in small-scale or modular LPG production facilities
- Supporting national energy security and supply diversification
The demand gap is expected to widen as population growth, urbanization, and government clean-cooking initiatives accelerate LPG adoption. Investors entering the production and importation segment can benefit from:
- A large and expanding market
- Stable long-term consumption patterns
- Opportunities for strategic partnerships with major distributors and marketers.
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With appropriate regulatory approvals, logistics planning, and capital investment, LPG importation and production remain among the most lucrative opportunities in Cameroon’s energy value chain.
2. Bulk LPG Transportation Services.
As the LPG distribution network expands, so does the need for reliable bulk transportation services to move LPG from import terminals and storage depots to filling plants and regional distribution points.
Many large LPG marketing companies in Cameroon outsource transportation to independent trucking firms. This allows entrepreneurs to build specialized LPG transport businesses that:
- Operate dedicated LPG tank trucks and semi-trailers
- Deliver LPG to filling plants, depots, and wholesalers
- Maintain safety-compliant vehicles and trained personnel
In Cameroon, bulk LPG transportation is typically carried out using semi-trailers with a capacity of 20–22 metric tonnes, often equipped with double or triple axles to improve load stability and road durability performance.
Entering this segment requires:
- Investment in certified LPG road tankers
- Strong safety and compliance systems
- Skilled and trained drivers
- Good working relationships with LPG marketers and depot operators
Despite the capital investment required, bulk LPG transport remains a highly profitable service niche due to recurring demand and long-term service contracts.
3. LPG Wholesaling Business
LPG wholesaling is another attractive business opportunity within the Cameroonian LPG supply chain. Wholesalers typically operate without formal long-term contracts and instead work with marketers using standard pricing schedules.
Some key characteristics of the LPG wholesaling model in Cameroon include:
- Wholesalers are not obligated to return cylinders to the original brand-owning marketer
- They are not required to report their truck or outlet movements to marketers
- They may collect and retain cylinders from any LPG brand
- Cylinders can be returned to any marketer within the system
This flexibility creates opportunities for wholesalers to:
- Source LPG from different marketers
- Serve a wide base of retailers
- Respond quickly to regional supply gaps
The wholesaling model works particularly well in:
- Rapidly expanding peri-urban markets
- Regions with increasing household LPG adoption
- Areas underserved by traditional distributors
Entrepreneurs in this space must focus on logistics efficiency, pricing strategy, and maintaining adequate inventory turnover to ensure consistent profitability.
4. LPG Distribution Business
LPG distributors operate under exclusive distribution agreements with large LPG marketing companies. Under this model, the distributor is assigned a specific geographic territory or region where they market the company’s branded cylinders.
Key features of the distribution model include:
- Distributors pay refundable deposits to LPG marketing companies for cylinder inventory
- The marketing company reimburses the deposit when empty cylinders are returned
- Cylinders remain the property of the LPG marketing company at all times
- Distributors manage retail networks and direct-to-home delivery services
However, distributors must comply with strict operating restrictions, such as:
- Prohibition from filling cylinders with LPG from competing marketers
- Prohibition from transporting or storing cylinders belonging to other brands
To operate efficiently, distributors must:
- Build and manage their own network of retail outlets
- Operate a fleet of delivery trucks under formal contracts
- Ensure professional handling and safety compliance across operations
This opportunity suits entrepreneurs who are prepared to invest in logistics, workforce development, and territory-based market expansion.
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5. LPG Depot Operations
Depot operators play a central role in LPG storage, handling, and redistribution. In Cameroon, depot operators typically earn revenue through two primary income streams:
- Retail sales of LPG directly to consumers and retailers at the depot
- Providing storage and hospitality services to other LPG marketers without their own storage facilities
By offering hospitality services, depot operators allow smaller companies to:
- Access storage capacity
- Reduce their capital investment burden
- Expand distribution networks more rapidly
This creates:
- Long-term business relationships
- Stable recurring income for depot owners
- A stronger and more resilient LPG supply chain
Depot operators must invest in:
- Standard-compliant LPG storage tanks
- Safety monitoring and fire protection systems
- Skilled technical personnel
- Environmental and regulatory compliance
With rising demand for storage and distribution infrastructure, depot investment remains one of the most strategic opportunities in the LPG sector.
6. LPG Retailing Business
The retail outlet is the final point in the LPG supply chain where consumers exchange empty cylinders for filled ones. LPG retailing businesses may include:
- Small LPG shops
- Neighborhood gas points
- Mobile delivery vendors
- Petrol stations offering LPG cylinder exchange services
In Cameroon, LPG is also commonly retailed at petrol stations, which provides greater accessibility and convenience for customers.
Retailing offers:
- Low-to-moderate capital entry requirements
- Fast inventory turnover
- Strong demand from households and small businesses
Successful LPG retailers often:
- Locate outlets in high-traffic residential areas
- Provide reliable customer service and safe handling practices
- Offer home delivery to increase sales volume
As LPG adoption continues to grow across urban and semi-urban communities, retailing remains one of the easiest and most scalable entry points for aspiring entrepreneurs.
Potential Risks and Considerations.
While the LPG sector in Cameroon presents strong investment potential, entrepreneurs should also be aware of key risks so they can plan effective mitigation strategies. Understanding these risks early helps ensure safer, more resilient, and well-managed business operations.
Here are some of the main risks associated with LPG investments in Cameroon:
1. LPG Supply, Demand, and Price Fluctuations
As a globally traded commodity, LPG is subject to international price movements driven by supply-demand dynamics, geopolitical conditions, and shipping costs. Significant price increases may:
- Affect affordability
- Reduce consumption volumes
- Disrupt supply availability in domestic markets
Investors can mitigate this risk through:
- Long-term supply contracts
- Diversifying sourcing partners
- Building strategic storage capacity
These measures help stabilize supply reliability even during periods of price volatility.
2. Interest Rate and Inflation Risks
LPG investments typically generate income in the local project currency, while assets, capital contributions, and financial reporting may be conducted in US dollars or euros. Because the CFA franc is pegged to the euro, currency risk remains relatively limited. However, fluctuations between the Euro and the US dollar can still affect portions of dollar-denominated investments.
Mitigation strategies may include:
- Currency hedging
- Use of derivative products
- Careful financial planning and risk assessment
These tools help protect investor returns and maintain capital stability.
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3. Risk of Lower-Than-Expected Demand
Projected LPG demand may not fully materialize if:
- Consumers lack awareness of LPG benefits
- Equipment and appliances are unaffordable
- Access to distribution points remains limited
To reduce this risk, investors and marketers can support:
- Consumer education and awareness programs
- Affordable cylinder financing or exchange systems
- Expansion of retail and distribution networks
These initiatives not only build demand but also strengthen long-term market sustainability.
4. Execution and Operational Risks
LPG is a technically sensitive sector that requires experienced and competent professionals to manage operations safely. Poor design, weak safety practices, or inadequate technical expertise can lead to operational inefficiencies and regulatory challenges.
Investors can mitigate execution risk by:
- Partnering with knowledgeable local experts
- Engaging certified engineers and industry specialists
- Implementing strong safety, maintenance, and training programs
Access to the right expertise significantly improves operational reliability and investment performance.
Conclusion.
The liquefied petroleum gas market in Cameroon represents a fast-growing and highly strategic energy sector, driven by increasing household demand, urbanization, and strong government support for clean-cooking adoption. As more families shift away from firewood and charcoal, LPG is playing a vital role in improving public health, reducing environmental degradation, and enhancing household energy efficiency.
From importation and production to transportation, wholesaling, distribution, depot operations, and retailing, the LPG value chain offers multiple profitable entry points for entrepreneurs and investors.
With thoughtful planning, sound risk management, and collaboration with experienced partners, investors can build sustainable businesses while contributing to national energy access, job creation, and economic development.
For forward-looking entrepreneurs ready to participate in Cameroon’s evolving energy landscape, the LPG sector provides not only strong commercial opportunities but also the chance to play a meaningful role in supporting cleaner, safer, and more modern cooking solutions for millions of households across the country.
