For decades, the petrol station business in Tanzania was dominated by international oil marketing companies (OMCs). These are big players with a network of petrol stations.
But since the government liberalized the downstream petroleum operations in 2000, the petrol station business has undergone massive transformation in terms of structure and worth.
According to the Energy and Water Utilities Regulatory Authority (EWURA), the number of petrol stations in Tanzania was 1,811 in 2014, and grew to 2,492 as of February 6th, 2026.
This is a clear indication that more people are getting into the business. Petrol stations owned and operated by independent dealers are currently dominating the segment, taking 60% to 70% of all petrol stations in Tanzania.
Wealth Creation and Entrepreneurship.
Every investor putting their money in the energy sector by building a petrol station expects a satisfactory return on investment. A business aims at generating profit and thus is a source of wealth to owners.
The creation of wealth may not be actualized due to various factors affecting the petrol station business, such as location, new competitors entering the fray post-acquisition of the site, and operational inefficiencies.
Location plays an important role in the demand for fuel, which is linked to geographic area, traffic volume, accessibility, and visibility of the area.
The business is location-driven, so the success of this business is based on a good, viable location. Building a petrol station in a poor site with low traffic may affect the business, and the creation of wealth may not be realized.
Independent investors are now investing with confidence, knowing exactly the demand, expected return on investment, and feasibility of their project.
Instead of relying on assumptions, opinions, and conflicting advice, they use data-driven insights to evaluate demand for their new petrol station project and support their capital allocation decisions.
One Tanzanian investor reached out to us to conduct a feasibility study for setting up a petrol station project in Msasani, Dar es Salaam.
The data from the feasibility study reveals that an investor will generate net income before tax of Tanzania shillings 15,201,153. This location was considered viable for a petrol station to break even and cover all operational expenses such as salaries, utilities, and maintenance.
Another Tanzanian investor reached out to assess the viability of setting up a petrol station in a proposed location in Arusha. The analysis revealed the site has the potential to generate net income before tax of Tanzanian shillings 116,914,299.
This data translates that there is money to be made in the sector, despite the increasing number of petrol stations. Because the more new petrol stations are built and expanded, the more fuel is needed to meet the growing number of vehicles and transportation activities in the country.
The Market with Future Growth Potential.
With the increased number of petrol stations across the country, some investors might think that the market is already saturated. But the data indicates that the petrol station sector is poised for significant growth due to the expansion of the road network and the projected number of vehicles in Tanzania.
According to the Tanzania Revenue Authority (TRA), the agency responsible for registration of vehicles in Tanzania, the total vehicle stock grew from 1.9 million in 2015 to 4.3 million in 2021, and is projected to reach 8 million in 2030. This leaves a large potential market for investment in petrol station projects.
Also, the total road network has doubled in the last two decades, increasing from 85,000 km in 2003 to 181,191 km in 2022.
The Role of Business Planning and Feasibility Study Consultants.
As the petrol stations projects  involve substantial capital commitments, high execution risks, complex market condition, and reputational exposure, the role of feasibility study consultants becomes crucial in managing capital risks, complying with regulatory authorities, and securing funding from banks and other financial institutions.
Location Selection Feasibility Study.
Selecting the right location for your petrol station project involves analyzing factors such as fuel demand in the proposed area, competition, visibility, and accessibility of the site.
Financial Analysis for Capital Providers.
Banks and financial institutions rely on feasibility studies and business planning to assess the viability of projects. These analyses evaluate project costs, return on investment, payback period, potential sales volumes, additional revenue sources, and other infrastructure requirements such as fuel pumps and storage tanks.
Contact us for business planning and feasibility studies relied upon in funding and capital allocation decisions.  Reach out to us via info@tanzaniapetroleum.com or +255(0)655376543
