How is This Petrol Station Sells 200,000 Liters of Fuel Per Months In Tanzania?

After working tirelessly researching, selecting a location site, acquiring all permits and licenses, and selecting vendors, Mr. John Mosha successfully started his new petrol station business in Arusha, Tanzania.

Once I met him in Dar es Salaam, I was eager to know his new petrol station business was performing.

“We are new in this energy sector. So we are still learning. But with one month of operation, we sell 5000liters to 6000 of diesel and petrol per day.” he said.

Let’s do the math on that. The current profit margin is Tzs 108 per liter. Tzs 108*200,000liters= Tzs21,600,000. That means Mr.Mosha collected Tzs 21,600,000 in the first month of the petrol station operation.

Mr. Mosha believes that flexibility, making the right decisions, and getting professional help is vital to achieving growth in the retail fuel sector.

“Our competitors have substantial financial muscles and more experience in the market. But you don’t have to be an engineer to run a successful petrol station. Your decisions must be flexible and fast because even losing Tzs 50 can limit your business growth.”

Speaking on the challenges Mosha said.

“Like any sector, the challenges are there, but the way we approach the challenges is to focus on getting insights and making the right decisions.”

“The first issue is location. Our petrol station is located in a very strategic area. We employ experts to help us with research to inform us as to whether the site is viable. This allows us to make decisions based on data and focus our time, money, and resources where we have the best chance to succeed.”