Six Trends that are changing the fuel station market in Tanzania and East Africa

Here are five trends that are changing the petrol station industry in Tanzania and Africa.

1.Intense competition:

For quite sometimes Tanzania’s fuel retail market has been dominated only by three major brands. But recently, numerous small players have invested in the petrol station business across the country.

In April 2021, the study done by Kalibrate Technology Inc, reveals that over 150 are under construction. As more players joining the market, competition increases. If you decide to invest in a petrol station without conducting solid research about the potential of your sites, your closest competitors, and how much liters you expect to sell in your trading areas, you might suffer from years of no growth.

2.Growing demand for a fuel station in rural areas
The need for a fuel station in rural areas is growing at fast rates.T he growing demand for retail petrol stations in those areas is driven by increasing economic and farming activities. The farmers constantly require diesel in huge quantities to operate their windmill to pump water for their livestock as well as crops and to operate their trucks. There is also a proliferation of trucks that are used to transport crops in those regions that rely on diesel and petrol. The fishers constantly require fuel to power their boats.

So if you plan to open a new petrol station, the idea of starting small petrol stations in rural areas can be wise decisions

 

3.The shift in customer demand for more services

In April 2021, the study done by Kalibrate Technology Inc, reveals that over 150 are under construction. As more players joining the market, competition increases. If you decide to invest in a petrol station without conducting solid research about the potential of your sites, your closest competitors, and how much liters you expect to sell in your trading areas, you might suffer from years of no growth.

The shift in customer demand for more products and services.

When I was a kid, the petrol station was a place for buying just diesel and fuel. But there is changing customer behaviors. Customers expect more than just filling fuel to their car. They want to wash their cars, change oil, buy fast foods, drinks, etc. 

 Offer complimentary services like car washing, car repair, restaurant, shopping mall, Supermarket will draw more customers to your site and maximize revenue.

4.Focus on safety and sustainability.

Regulatory authorities are arguing about meeting  health, safety, and environmental standards. To thrive in fuel station business, your aim should be to operate a clean, well-maintained service station environmentally and safely. 

5.Focus on the relationship of trust rather than a transaction.

Customers want more than to consuming oil from your station. They need advice and guidance on what type of lubricant oil will be suitable for their vehicles. Guiding and advise your customers will help you earn your customers’ trust, refer your stations to their friends and improve sales volumes. Ensure that your station is managed by efficient and well-trained men who know how to deal with customers and understand the products to help customers make the right choices. Building a strong relationship with your customers is key to drive your fuel sales and services.

6.Electronic Payments
Cash is responsible almost for 95% of petrol station transactions in Tanzania. However, electronic payment options will grow in the future.

I hope this helps.