How To Start Petroleum Products Supply Business In Tanzania,The Detail Requirements
Petroleum products distribution is the business that ensures a steady profit . And taking within a reasonable period of time from setting up
If you rack brains to find perfect opportunity in Tanzania’s petroleum industry. Oil products supply is the better option.
Many investors interested in this business. And in this regard is a testimony it yields solid return.
You might feel a market is already saturated. But you can come in and make a go of it.
The fun thing is you don’t need to store or market products. You get products from the depot. You supply to retailers on demand. Cash your money. And smile to the bank.
Still doubt? Keep reading you’ll find out
The article exposes you some facts that’ll enable you to start the business anytime you ready. You’ll learn, the amount you need to invest in. The profit margin you’ll be earning. Stumbling blocks along the way and how to overcome them.
The profit margin for this business is mouth-watering
We base our calculation per liter per truck. And let take Dar es salaam and Mtwara as a case study
Depending on where you supply products. But at the depots today, they pay Tzh 100 per liter from D ar es salaam to Mtwara.
If you load 18,000 liters in your truck you make 18,000 ×100= Tzs 1,800,000.And after all expenses, you’ve a profit of Tzs 1,000,000.
Imagine for a moment :that’s the profit for just one trip. And if you get 4 trips in a month, you earn 1,000,000×4= Tzs 4,000,000
And Industry insiders reveal that they realize all their capital after 1 to 2 years of services.
Read:How To Start Petrol Filling Station In Tanzania- Complete Guide
Why the demand for this business is huge in Tanzania
In fact, a business that’s dependent on people’s needs grows by leap and bound.
No matter how much is imported still extra needed to meet the Tanzanians’ needs and their works
Many oil marketing Companies in Tanzania like Oilcom, Total, Puma,Lake Oil have many petrol filling stations and clients in Tanzania and beyond
The problem is they have minimal trucks to transport petroleum products and satisfy all their clients
To come out ahead. They pull out people with their own trucks to help them distribute products locally.And is the point smart entrepreneurs (Like you), you make huge cash.
The requirement to start Petroleum products supplies business.
Acquire supply tanker/truck
To stand out, buy your own truck. And a fair truck costs at least Tzs 35,000,000
For starters, I recommend a truck of about 18,000-liter size minimum. To become a large scale supplier get 37,000 to 40,000-liter truck size.
Hire Driver.
You should be little careful when choosing a driver for your truck. Find experienced and qualified drivers. A simple mistake can cost a huge cash in an instant.
Risks In Petroleum products supply business
Every investment has its respective stumbling blocks. Here’re risks in oil products distribution business
Truck Fall because of the careless driving and rough roads. Hire a wise driver who put safety first.
Fire Outbreak.
The truck might catch fire because petroleum products have high flammability. So it is better to ensure a truck and petroleum products with a reputable insurance company.
Budget
| Initial Investment | TZS 35,000,000 |
| Initial Salary for driver | TZS 250,000 |
| Pocket money for driver | TZS 200,000 |
| Misclleneous | TZS + 600,000 |
| Total | TZS =36,050,000 |
I’d love to know your thought
Hussein Boffu
Graduate In Petroleum Geosciences
Hussein.Boffu@tanzaniapetroleum.com
0655 37 65 43
