How Does An LPG (Cooking Gas Wholesale) Distribution Business Works In Tanzania
I said it before, and I will say it again. Tanzania offers the largest and most growing market for LPG. I don’t think there is anywhere in the world that has a kind of potential for LPG products like Tanzania. The market is crying for new investment.
The annual LP gas consumption in Tanzania has grown from 5,500 metric tons in 2005 to 145,800 metric tons in 2019.
Tanzania still has one of the lowest per capita LPG consumption in Africa. Many opportunities exist for increasing LPG penetration and utilization in the country.
Opportunities are abundant in Tanzania’s LPG value chain for entrepreneurs and investors who are looking to address supply constraints in the domestic LPG market in Tanzania through retail and wholesale distribution, LPG refilling plants, transportation, installation, and LPG bulk storage and operation.
How Does LPG(Cooking Gas) Distribution Business Works In Tanzania
Ambitious entrepreneurs can apply to become a large oil marketing company’s super dealer who will work partly with them in the sale of the LPG, cookers, Fittings, and site installation in your target region.
Your supplier(large oil marketing company) will supply you full gas cylinders in bulk at a fair wholesale price and in turn, you will sell and earn a fair profit margin and you may decide to sell at retail price to double profit.
As a super dealer, you will have to make sure that you have enough full gas cylinder stock at any point to meet the orders of your clients instantly. You will also have at least one supply carrier to ensure effective supply. The initial capital investment for this venture ranges from Tsh 30,000,000 to Tsh 60,000,000.
The simple truth is that the initial capital of setting up an LPG wholesale distribution business is high. But with a great business plan, it is easier to secure the cooperation of both investors and money lending institutions.
I hope someone is learning.
+255(0)655376543 or hussein.boffu@tanzaniapetroleum.com
