How Much Does It Cost to Build a Petrol Station in Tanzania.?

The first question you will ask when you are considering starting a petrol station is, “How much is it going to cost me to build petrol station from start to finish.”

Starting a petrol station is an idea of growth. If you implement your petrol station idea, it will significantly impact people’s and society’s growth.

The capital requirement for starting a petrol station depends on the size of petrol station. It depends on the number of pumps, the capacity of underground storage tanks, and other complementary services you plan to offer at your petrol station sites.

There are fixed costs like license and permit costs. But the price of mechanical, electrical, and civil work will vary based size and design of your petrol station.

Building a petrol station with only two pumps will be cheaper than one with eight pumps.

Furthermore, the capital required for building a petrol station that sells just fuel will be lower than the one that offers non-fuel products like restaurants, car washes, garages, and supermini markets.

How Much Does It Cost to Build and Complete Petrol Station?

The capital requirements for an intermediate petrol station consists of four main cost groups: civil work costs, mechanical work costs, electrical work costs, and safety & Security costs (mainly firefighting & lighting system). In terms of cost distribution, depending on the size of the petrol station

A typical petrol station with a storage capacity of 2 storage tanks (20,000 liters of petrol and 25,000 liters of diesel) may cost between 200,000US$ and 300,000US$, equivalent to Tzsh 450 million to Tzsh600 million. Depending on the location, this cost excludes land costs.

I hope this help,

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.