35 Ways to Create Value In the Oil and Gas Sector in Tanzania and East Africa

 

Are you an entrepreneur looking  to create value in the oil and gas industry?

I want to say our people (Tanzanians and East Africans) are backbenchers because of the lack of  sufficient knowledge on how to create value in the oil and gas industry.

We aren’t  in a position  to  say that what  can do  to make us be paid  in the oil and gas industry?

At Tanzania Petroleum, we want to ensure access to knowledge and resources for entrepreneurs and professionals. In order to help them make good investment decisions, prepare their capacities to create massive value in the oil and gas industry. And enriching lives with meaning, fulfillment and happiness.

Here are 35 ways to create value on the oil and gas value chain

1. Crude Oil Refinery

Tanzania import millions of litres of refined petroleum products annually.

Setting up your own petroleum refinery will reduce the amount of petroleum products imported into the country. It will also improve availability of the petroleum products in the country.

Petroleum refinery business is a lucrative but capital intensive. The total investment cost for setting up a refinery in Tanzania is approximately  USD 120,500,000.

And it can generate you an income of USD  260,000 on daily basis..

So, your refinery will be equipped  not only to attract wholesale and retail customers of petroleum products in Tanzania but also to be able to sell the products to neighboring landlocked countries like Rwanda, Burundi , Zambia, DR Congo, etc.

2. Bulk Oil Operation

Bulk Petroleum operation is .  To go in this line of business, you might need to invest in infrastructures such trucks or oil storage depot, strategically needs to consider buying equipment such as trucks or tanks ,, oil storage depots and chain of petrol station. According to our research the total investment cost for this project is approximately USD 8-15 depending on capacity of your facility.

3.Oil and Gas Mediator

 

Oil and gas companies often make deals with equipment and/or service providers, and whenever they do this, the intermediary earns a handsome commission for every successful transaction carried out. The disadvantages of this business model is minimal because it requires next to no startup capital. All you need are contacts of customers in the industry for whom to serve as intermediary and reputable vendor.

4. Maintenance and Servicing

This is another profitable business because oil and gas companies have many facilities including depots, gas plants, tank farms, power plans, gas wells. So, they will always need to fix and maintain them.

And that is where you come in.
However, and most importantly, you need sufficient technical knowledge and you have to assemble a strong team of service engineers and technicians to fully satisfy your clients.

5. Human Resources (Manpower Management)

Companies in the oil and gas industry are busy with operations and productions such as drilling, extracting etc. They want to focus on their core business and that’s why hiring a recruitment agency will save time and hassles with hiring workers.

Bear in mind that companies in the industry hire many people when they have new projects. So, to stand out in this business, you need keep abreast of what new project is forthcoming in the industry and be the first person to approach the clients for manpower management services.

6. Consulting

While many consulting firm in Tanzania and East Africa focus on engineering and project consulting, there is a gap in the market in need of providing guidance, support and resources for the investors who own or want to start a business in this industry.

So, you fill this gap by starting your own consulting firm, consulting and providing business support for the people who want to build a sustainable business in the oil and gas industry. This business is ideal for people who don’t have a huge capital to venture into an expensive oil and gas business but have in depth knowledge of the oil and gas industry.

7. Products (Fuel) Haulage and Logistics

Due to the increasing demand for petroleum products in East African countries, transportation of these products (for example, premium motor spirit (PMS), diesel, kerosene, and other petroleum products) has opened a lucrative investment opportunity for entrepreneurs. This business is about using fuel tankers (trucks) to distribute petroleum products with transport charges depending on the distance to be covered and the capacity of the truck.

You will have to obtain a license from EWURA to be allowed to transport fuel across the country or to neighboring countries. You will have to purchase a truck and hire a qualified and experienced driver who will haul petroleum products for marketers from depot to their desired destination.

I would recommend you start with transporting petroleum products from depots to filling stations locally across the country. As your business expands, you can acquire a new license to transit fuel to neighboring countries such as Uganda, Kenya, Rwanda and Congo DRC.

8. Gas Retailing/Distribution

Cooking gas or LPG distribution is one of the most profitable oil and gas business opportunities. Yes, it demands medium scale capital investment. You also need to have proper licensing from the relevant government agency. Also, the market for cooking gas distribution is increasing.

9. Build a Website

The website should focus on the oil and gas industry. Do reviews, interviews and write original content. Monetize your traffic through advertisements, referrals and affiliate programs.

10. Start a Petrol Station

If you’re brainstorming in order to find a perfect business idea in Tanzania and East African oil and gas sector, investing your cash in the petrol filling station business is a wise decision.
This business ensures steady profit in a reasonable time from setting up. You might feel the market is already flooded, but you can come in and have a go at it. Petrol stations are in every street corner because they make insane profit.

Don’t get me wrong. I am not saying this to brag. Instead, I am telling you this because I’ve carried out solid research. So, I can confidently tell you that this is one of the right business opportunities to pursue.

The filling station market emerged in tandem with the automobile industry.
Most important is the emerging mode of transportation. There are tricycles or “boda-boda,” as everyone calls it, and it has increased the demand for petroleum products in Tanzania. The good news is that, all these vehicles and generators run on diesels or petrol.

With petrol station in every street corner, you might feel the market is already saturated. But with a good location, commercial expertise, systematic marketing and a wide range of services, new entrepreneurs like you can win the competition in this business.

11. Online Fuel Delivery

In the era of booming eCommerce industry, online fuel delivery is definitely a lucrative opportunity for the energy-preneurs. However, the business demands right strategic planning and operating procedure. In addition to that, you have to put a substantial initial investment. It is advisable to start with an operation within a single city. And after getting the sufficient confidence, expand the business.

12.Oil and Gas News

You can make money sharing news and information on latest developments, investment ideas, petroleum business challenges, entrepreneur interviews, etc. through online and offline means such as blogging, publishing periodic magazines, creating an oil and gas job portal, starting TV shows targeting the oil and gas sector and lots more. This is a perfect online oil and gas business for everyone.

13.Oil and Gas Brokerage Services

Even if you have no money to venture into the oil and gas business, you can still profit from the industry by offering brokerage services between buyers and sellers of petroleum products.

14.. Start a TV Show Production

You can also launch a TV show targeting the oil and gas sector. You can profile and interview entrepreneurs in the oil sector, review the challenges in the petroleum sector, etc.

15. Blogging on Oil and Gas-Related Issues

Another easy-to-start business in the oil and gas value chain is to start blogging on oil and gas-related issues. It is interesting to note that there are loads of people out there who are making millions annually from blogging. If you are an oil and gas professional or someone who has sound knowledge in the oil and gas industry, one of the businesses that you can consider starting is to start blogging on oil and gas related subjects. The truth is that if your blog has useful and helpful content, you will attract loads of traffic and if you have loads of traffic on your blog, you can easily secure good advertising deals from stakeholders and other businesses in your blog. Just ensure that you update your blog regularly and you will continue to attract traffic.

16. Publication of Oil and Gas Magazine

Another of the several businesses is to start publishing oil and gas magazines. Information is key in any industry and all you need to do to be able to gain ground with this type of business is to ensure that you have relevant contents in your magazine per time. Part of the information that you should make available in your oil and gas magazine are the various business opportunities in the oil and gas industry, the latest trends, news and information as it relates to the industry, and advisory services to investors who are looking towards investing in the oil and gas industry.

17. Lubrication Oil Retail Shop

Selling egine oil, brake fluid and hydraulic oil et al. is a profitable and highly thriving business venture an entrepreneur who is interested in making money from the oil and gas business value chain should consider. The fact that vehicle owners subject their vehicles to servicing at regular intervals creates a market for lubrication oil products. In recent times, there is an increase in the lubrication oil production sector as it is one business you can readily go into with the hope of making great profit. The various needs of lube oils in homes, organizations, factories and industries just cannot be overemphasized because the population of people who have mechanical need for oil have continued to increase over the years. So, for you to start out in this trade, have an expert carry out good feasibility studies.

18. Start Manufacturing Cooking Gas Cylinders

Another profitable and thriving oil and gas-related business that an entrepreneur who is looking towards investing in the industry should consider starting is to go into the manufacturing of cooking gas cylinders. There is indeed a large market for cooking gas cylinder. As a matter of fact, households no longer rely on just one cylinder; they prefer to have one or more backups. This is indeed a capital intensive kind of business. It also requires loads of expertise to be able to stay afloat in this type of business.

19. Start a Filling Station Construction/Building Company

Another lucrative business in the oil and gas business value chain that an entrepreneur should consider starting is filling station construction/building company. It is important to state that you can only successfully start this type of business only if you have the required training, experience and technical skills. The fact that investors are investing in filling station business means that there will always be a market for engineers who are into the construction of filling stations.

20. Go into the Retailing and Supply of Pumping Machines

If you have visited a gas station/filling station before, you will notice that the means of retailing fuel, diesel, gas and kerosene et al. is via a well calibrated pumping machine. This goes to show that there is a market for pumping machines.

21. Health and Safety Trainings for Oil and Gas Workers

Another thriving and profitable business in the value chain is health and safety training for oil and gas workers. If you have the required background (experience and qualifications) to train on health and safety, then you should consider starting an organization that trains oil and gas personnel. In point of fact, health and safety is taken seriously in the oil and gas industry simply because of the risk and hazard that workers in the industry are subjected to in a bid to carrying out their jobs.

22. Manufacturing and Sale of Oil and Gas Machines and Equipment

Manufacturing and sale of oil and gas machines and equipment is yet another thriving and profitable oil and gas related business that an investor who is looking towards starting a business in the industry should consider. Oil drilling and exploration equipment, pumping machines, casing and pipe stacking and handling equipment, pumps, slush, oil and gas rig, gauges and meters, valves, actuators, regulators, cranes and lifting equipment, hazardous area electrical equipment and several other equipment and machines are marketable. So, if you are looking for a business to start in the oil and gas industry, then one of your options is to go into the manufacturing and sale of oil and gas machines and equipment.

23. Welding Services for Oil and Gas Companies

Another profitable and thriving business in the oil and gas industry that an entrepreneur who is looking towards starting a business in the industry can successfully start after acquiring the required training is to offer welding services. Welding is one of the services that are needed in the oil and gas industry to deliver precision welding jobs. So, if you are looking for a business to start in the oil and gas industry, then one of your options is to provide welding services for oil and gas companies.

24. Oil Farm/Depot

Imported fuel as stated above are stored in tank farms. Most oil marketers don’t own tank farms and, as a result, always need to store their petroleum products in other tank farms. With a large operating capital, you can construct a tank farm for the sole purpose of leasing it out to oil marketers who bring in petroleum products.

25.Open a Training School/Institution

There are very few colleges and universities that offer specialized training in the oil and gas sector. Starting an institute focused on the oil and gas industry is a good idea. Choose a niche, hire trained instructors, lease property and provide a robust curriculum.

26. Sell Equipment

The oil and gas industry uses lots of machinery to carry out their activities. You can buy or fabricate equipment targeted at a sector. The business is lucrative and requires lots of investment in money, technical knowledge and testing.

27. Supplying Safety Equipment

Every sector of the oil and gas industry needs lots of safety equipment. Safety is a major concern and a priority in the business. The companies need to buy equipment regularly. This is where your company comes into the picture. You can buy safety gears from major manufacturers and supply companies in the industry.

28. Insurance

The industry is very hazardous so they need proper insurance cover. You can hookup with an insurance company as a sales representative. You make money through the payment of commissions. The more insurance premiums you sell, the higher your profit.

29. Retail Kerosene

Kerosene business is profitable and has a huge market. People use kerosene to cook meals and light fires.

30.Oil and Gas Enterprise Software Application

Technology companies are equally not left out as they can build tech solutions specifically targeting the oil and gas industry, and license the software to companies in the sector.

31. Oil and Gas Exploration

Oil and Gas exploration is capital intensive and not for the faint-hearted. You need to get an exploration license or block. Exploration involves lots of demographic data, drilling and experts in exploration. You can also secure contracts from other oil companies to use your drilling equipment.

32. Cooking Gas Reseller Shop

Liquefied petroleum gas (LPG) market (popularly known as cooking gas) is expected to grow by fifty percent in the near future due to the wide adoption of LPG as a source of energy for cooking in residential areas, replacing other traditional cooking fuel such as charcoal and firewood.

The first option to go into the LP Gas business is to set up a retail shop in highbrow areas. Location is a key driver to success in starting cooking gas reseller shop. To start this LP gas business, you need at least 22 to 35 pieces of gas cylinders (preferably 15Kg and 6Kg gas cylinder), regulators and hose, and weighing scale. You will buy the cooking gas from major dealers/superdealers and resell them to households in your target location.
I often wonder how they make a profit seeing that there is intense competition in this business. But the best part is that, as the number of the household switching to this fuel increase, demand increase and more customers arise.

33. Offer Legal Services

There are legal practitioners who are well-vested in the business of oil and gas. This set of lawyers are specialized in oil and gas law, and they are making the most out of life in the industry. What they do is to offer legal advice to those in the industry who desire their services. This aspect of business opportunity in the oil and gas industry, according to findings, is a well-acknowledged service and it is a lucrative job for lawyers in the oil and gas industry, and that the job is reserved only for lawyers. So, lawyers, this is an opportunity in the oil and gas industry for you.

34. Start a Crude Oil Refinery

Tanzania import millions of tons of refined petroleum products annually. By building a crude oil refinery using limited stock feed supply in Tanzania, you will not only reduce the amount of petroleum products import in the country but also cater to the booming consumer demand by providing Tanzanians with affordable petrol, diesel, jet fuel and other petroleum products.
Setting up a crude oil refinery requires a huge startup capital, but it is very profitable business if you can pull up resources to start this business.

35. Host Industry Events and Conferences

If you don’t have the massive capital to venture into those expensive oil and gas businesses but you have passion for the oil and gas industry, you may consider putting together industry events and help professionals and companies learn about new development across the industry and build relationship that are valuable for career and business development.
If your event can attract relevant decision makers in the industry, you will make handsome money from attendees and sponsorship from companies who are looking for visibility and exposure across the oil and gas industry.

 

Petroleum Refinery is a Lucrative Business Opportunity in Tanzania

Tanzania import millions of litres of refined petroleum products annually.

Setting up your own petroleum refinery will reduce the amount of petroleum products imported into the country. It will also improve availability of the petroleum products in the country.

Petroleum refinery business is a lucrative but capital intensive. The total investment cost for setting up a refinery in Tanzania is approximately  USD 120,500,000.

And it can generate you an income of USD  260,000 on daily basis.

The reasons petroleum refinery business is lucrative is that, due to economic growth, Tanzania and its neighboring landlocked countries have recently registered significant growth in demand for petroleum products.

So, your refinery will be equipped  not only to attract wholesale and retail customers of petroleum products in Tanzania but also to be able to sell the products to neighboring landlocked countries like Rwanda, Burundi , Zambia, DR Congo, etc.

If you are looking to increase your stream of income and maximize impact like creating employment for others, getting into the petroleum refinery business will help achieve that mission and you will also inspire countless other as role model.

The population of this country is growing and so is her economy. I advise you leverage that.

You can’t start this business on your own savings. So,you will have to get private investors to back you to get started.

I hope this help.

Here at Tanzania Petroleumour goal is to help people and companies of all professions and size enter the oil and gas industry faster and with fewer hassles so that they can increase income and maximize impact.

Entrepreneurship in Oil and Gas: Two Ways to Join the Industry

I want to say our people (Tanzanians and East Africans) are backbenchers because of lack of information.

There is a lot happening in the oil and gas industry, but most people have no clue as to opportunities out there.

The myth that you need to be an expert or a wealthy person to participate in the oil and gas business has limited our progress in this industry. So, we just sit back and watch others play the game.

Most people will make you believe that participating in the oil and gas industry is hard or impossible.

A look into the industry reveals that there is opportunity for almost everyone. But deciding where to invest and the capital requirements depends on your mode of entry.

For example, a person who enters the market as an “agent” does not need any real assets to operate. But an entrepreneur, who needs to invest in infrastructures such as LPG plant or oil storage depot, strategically needs to consider buying equipment such as trucks or tanks and to meet environment compliance before starting.

Also, locating your small petrol station in rural areas and small towns is cheaper and less to maintain than building a petrol station in urban areas and major cities.

In addition, an entrepreneur looking to invest in engineering and construction project in oil and gas needs to have more specialized knowledge and expertise.

But there are areas that require low level of expertise which everyone can venture into. For example, investing in providing catering, logistic and transportation services to oil companies and their prime contractors, etc.

The simple truth is that the recent Covid-19 pandemic has reshape our thinking as entrepreneurs on the role we can play in our businesses.

The pandemic has taught us that we need to invest in business that thrive even in a bad economy.

We need to market products and services that people can’t live without. When you are in the oil and gas business, you are selling necessity and people must buy these products even when times are tough.

If your current business doesn’t generate consistent cash flow and you still have the passion to try something new, when done right, operating business in the oil and gas sector can be a lucrative and a reliable source of income.

Two Way to Join the Oil and Gas Business

The population of this country is growing  and the its economy is also growing. So, the demand for oil and gas are immense.

If you are considering to serve the oil and gas industry as an entrepreneur, here are two possible ways to join the league:

1. Become an entrepreneur in the upstream sector.

For those of you who are not coming from the oil and gas background, the upstream sector is the segment of the oil and gas industry that involve finding, discovering and getting oil and gas resources out of the ground. You often hear people call it Exploration and Production.

Entrepreneurs in this part of the oil and gas industry provide supportive services, equipment, tools and materials to make these products available.

Following massive discovery of natural gas in offshore Tanzania and 1445 kilometer pipeline construction from Ugandan to Tanzania, investing in providing supportive services and goods in these projects can be lucrative.

2. Become an entrepreneur in the downstream sector.

The downstream sector is the segment of the of the oil and gas industry dealing with importing  storage, distribution and marketing of the oil and gas related products such as diesel, petrol, LP Gas, natural gas, lubricants, CNG etc.

 

 

I hope this help.

Here at Tanzania Petroleum, our goal is to help people and companies of all professions and size enter the oil and gas industry faster and with fewer hassles so that they can increase income and maximize impact.

Demystifying the Oil and Gas Industry

For quite some time now, investing or doing business in the oil and gas industry was seen as the exclusive domain of the wealthy.

You had to have a deep pocket, huge financial muscles and high connections with decision-makers in the industry to play the game.

The idea of investing has caused (and is still causing) many average Tanzanians and Africans to feel overwhelmed and intimidated. So, they see it as out of their league.

A Myth Perpetuated by Virtually Everyone

We perpetuate the belief that one shouldn’t try this at home, but leave it to the BIG guys.

Unfortunately, this belief can drive people away from investing in this extraordinary industry and result in not expanding their sources of income.

The intimidation people talk about investing in the oil and gas industry is largely a myth, a web of misconception that has been around for so long and has become so pervasive that it seems unquestionable.

People think the oil and gas industry is too risky. They don’t speak the language. They don’t have an oil-and-gas-related degree (such as Petroleum Engineering).

All these common ideas are untrue because…

The Good News

And a really good one at that.

Investing or doing business in the oil and gas industry can easily be demystified.

At Tanzania Petroleum, our goal is to turn fear and intimidation into confidence and empowerment.

We set out to design an integrated project consulting firm that will enable the extraordinary by empowering the average African with the know-how, tools, insight and clarity they need to get started (such as investing) in the industry.

We set out to explain the oil and gas industry in plain English and help people get on the path to building a business they would be proud of.

I know that doubters out there will convince you that doing business in this industry is hard and that only the big guys can compete.

Our Goal and Mission at Tanzania Petroleum

My goal as the founder of TP is to demystify the industry, empower entrepreneurs and enable the extraordinary.

I am passionate about helping entrepreneurs realise that they can essentially learn as much as they need to know about starting and developing their operation in the oil and gas industry.

We have designed in such a way that it is time saving and efficient; you do not have to spend countless hours trying to learn technical words or statistics. In real time, you will have affordable tools in your hands to make a good investment decision.

How We Operate

When I sit with clients, I let them know that they are aiming at building something extraordinary.

That they must be willing to invest the time, money and emotional commitment it takes to build something that matters.

And that this is the only way that they can prove doubters who think it is impossible wrong.

Once we agree on the above-mentioned, my team and I give the client all the necessary know-how, insight, clarity and help they need to enable them build something extraordinary.

Here I am today. Including my team.

By the grace of God, every day, our products and services enable the extraordinary to happen. When entrepreneurs, through our insights, build an extraordinary business that employs a lot of people and inspire countless others as a model, then we know that our mission and our goal has been achieved in one instance.

 

 

Pre-feasibility Report For Starting LPGas Refilling Plant in Tanzania

A Liquefied Petroleum Gas (LPG) refilling plant is a system which can be used either automatically or manually to refill LPG cylinders.

Oil and gas companies have projected an increase in demand of LPG in the future due to increase in its domestic use. The demand is likely to increase subsequently over the years to come. Even in the present scenario, it is very difficult to meet the market demand of many regions in Tanzania.

In line with the requirements envisaged and to ensure fulfillment of demand, a medium LPG plant can be established in major cities and municipals with a storage capacity of 50 MT x2. This proposed plant shall meet the short supply of LPG cylinders in the area and also decrease lead time in the areas. It will also be used to meet the future household demands of the people.

Project Description

The proposed plant will have a capacity of 50 MT x2 bottling plant conforming to international and Tanzanian laws as a medium plant. These storage tanks will be enough to start with and to be distributed through LPG cylinders in entire (put a designated area) region.

A 100 MT storage is important to avoid the frequency of transport and any other associated costs and risk during transportation

Project Indicators:

Plant Capacity:  100 MT

Payback Period:  2:02 years.

Break even: At third year  at an increase of 3.5-6%

Get the Full Version Now

In the full version, you will have access to the following table of contents:

Introduction:

Project Description.

Project Location and Land Size.

Legal Requirement

Building Requirements for LP Gas Refilling Plant

Manpower Requirement for LP Gas Refilling Plant

Potential Customers. 6

Market Study and Assessment for LP Gas Refilling Plant

LP Gas Import in Tanzania.

LP Gas Industry Trends.

LP Gas Industry Outlook.

Marketing Strategy.

Major Player in LP Gas Industry.

Financial Plan.

Sales Projection per week, Month and years

Working Capital and Project Investment Cost

The Break-Even Analysis for LP Gas Business.

Risk Assessment for LP Gas Refilling Plant 1

 

For the complete detailed feasibility report  for starting and running a LP Gas Plant in Tanzania, Send an email via info@tanzaniapetroleum.com.we will advise the best payment mode.

A Sample Business Plan for Engine Oils (Lubricant Oil) Distribution Business in Tanzania

1. Executive Summary

– Company Overview

STANDARD LUBE is poised to become a significant player in the lubricant oil distribution market in Tanzania. The company, legally structured as a Limited Liability Company, will strategically position itself as a reliable source of high-quality lubricants serving various sectors including automotive, industrial, mining, agriculture, and construction. Led by Charles Bebwa, a seasoned professional with extensive industry experience, STANDARD LUBE aims to deliver exceptional customer service while fostering customer loyalty and driving exponential growth.

Legal Structure
STANDARD LUBE will be a legally licensed Limited Liability Company (LLC). This structure will allow for flexibility in management and ownership, while also providing liability protection for its owners. The LLC status will facilitate smoother operations as the company navigates regulatory requirements and ensures compliance with Tanzanian business laws.

History and Background
The inception of STANDARD LUBE is rooted in the extensive experience and industry expertise of its CEO, Charles Bebwa. Charles has over 15 years of involvement in the oil and lubricant industry, where he has developed key insights and established robust networks. This foundation will be instrumental in navigating the initial phases of the business, from securing supply chains to understanding market dynamics.

Business Location
STANDARD LUBE will be headquartered in Dar es Salaam, Tanzania’s economic hub. This choice is strategic due to the city’s high vehicular traffic, numerous industries, and logistical advantages, including ports that facilitate importation and exportation. Satellite offices or distribution points will be established in other major cities such as Arusha, Mwanza, and Mbeya, to ensure extensive market coverage.

Vision and Mission

– Vision: The vision of STANDARD LUBE is to become the most dependable and innovative distributor of high-quality lubricant oils in Tanzania. We are committed to serving our customers with integrity, providing exceptional value, and fostering long-term relationships. Our goal is to enhance vehicle and machinery performance across various sectors, including automotive, agriculture, mining, and construction, thus driving industrial growth and customer satisfaction in Tanzania.

– Mission: To provide a comprehensive range of lubricant products that meet the diverse needs of our customers, while maintaining excellence in service delivery and fostering sustainable growth.

Objectives

STANDARD LUBE aims to become a leading retail distributor of lubricant oils in Tanzania by fulfilling key objectives as follows:

  1. Market Penetration: Achieve a significant market share within the first three years by leveraging industry connections, high-quality products, and strong customer service.
  2. Customer Base Development: Build a robust client base consisting of individuals and industries through exceptional customer relations and after-sales services.
  3. Revenue Growth: Target an annual revenue increase of 20-25% through strategic marketing, partnerships, and competitive pricing.
  4. Operational Efficiency: Streamline logistics and supply chain management to ensure timely and cost-effective distribution of products.
  5. Reliability and Quality Assurance: Establish STANDARD LUBE as a trusted and reliable source of lubricant oils by maintaining strict quality control measures and adhering to industry standards.

Keys to Success.

  1. Quality Products: We will supply a wide range of high-grade lubricant oils, sourced through dealership agreements with renowned large oil marketing companies. This ensures our customers receive the right products at competitive prices and within optimal timelines.
  2. Customer Service Excellence: Our dedicated customer service team will prioritize customer needs, offer expert advice on product selection, and ensure a seamless purchasing experience. We will also provide after-sale services to maintain customer loyalty and satisfaction.
  3. Strategic Partnerships: Forming and maintaining strong partnerships with major oil marketing companies will be key to obtaining high-quality products and securing favorable pricing terms, thereby enhancing our overall market offering.
  4. Market Research and Adaptability: Continual market evaluation will allow STANDARD LUBE to stay ahead of industry trends, adapt to changing demands, and introduce new and relevant products to our lineup.
  5. Effective Marketing: Utilizing both digital and traditional marketing strategies to increase brand visibility and market penetration, including targeted campaigns, social media presence, and participation in industry events.
  6. Operational Excellence: Implementing effective logistics and supply chain management to achieve operational efficiency and reduce overhead costs, ensuring timely delivery and customer satisfaction.

Competitive Advantage through Differentiation

– Offering a unique combination of high-quality products, competitive pricing, and exceptional service will be fundamental to Standard Lube’s success. Investment in branding, customer education, and community engagement could further strengthen Standard Lube’s market position.

Get the Full Version Now

In the full version, you will have access to the following table of contents:

Table of Contents for Business Plan: STANDARD LUBE

1. Executive Summary

– Company Overview

– Legal Structure

– History and Background

– Business Location

– Vision and Mission

– Objectives

– Keys to Success

2. Market Analysis

– Industry Overview

– Target Market

– Market Needs

– Market Trends

– Market Growth

– Competitive Analysis

3. Organization and Management

– Ownership Structure

– Management Team

– Organizational Structure

– Roles and Responsibilities

4. Products and Services

– Product Description

– Petrol Engine Oils

– Motor Bike Engine Oils

– Diesel Engine Oils

– Manual Gear Oils

– Automatic Transmission Fluids

– Hydraulic Oils

– Industrial Gear Oils

– Brake Fluids

– Grease

– Product Specifications

– Unique Selling Proposition

5. Marketing and Sales Strategy

– Marketing Strategy

– Market Positioning

– Promotional Strategy

– Price Strategy

– Distribution Strategy

– Sales Strategy

– Sales Approach

– Sales Goals

6. Operational Plan

– Daily Operations

– Suppliers and Supply Chain

– Logistics and Distribution

– Quality Control

7. Financial Plan

– Revenue Model

– Funding Requirements

– Sales Forecast

– Expense Budget

– Profit and Loss Statement

– Cash Flow Statement

– Break-even Analysis

8. Risk Analysis

– SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

– Risk Management

For the complete business plan for starting and running a LP Cooking gas business in Tanzania, make a payment of $200 (or its equivalent in Tanzanian Shillings TZS 400,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the plan will be delivered to your email address (in word format) within ten minutes. You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

 

 

Eight Profitable Investment Opportunities In Tanzania’s Downstream Petroleum Sub-Sector

If you rack brains to find perfect business and investment opportunities in Tanzania. Investing in downstream petroleum products is a better option.

With economic growth and an increasing mid-class population, the demand for oil and gas-related products is increasing in Tanzania.

This article explores lucrative business opportunities you can start in Tanzania anytime you ready.

1.Start a Petrol Station

If you’re brainstorming in order to find a perfect business idea in Tanzania and the East African oil and gas sector, investing your cash in the petrol filling station business is a wise decision.

 This business ensures steady profit in a reasonable time from setting up. You might feel the market is already flooded, but you can come in and have a go at it. Petrol stations are on every street corner because they make an insane profit.

Consider this:

A petrol station located in a highbrow area of the city with lots of traffic could sell between than 5,000 liters to 25,000 liters in a day. At least, assuming two-thirds of customers decide to keep malice with you, you’ll still 2,000 liters. Depending on the supplier whom you source fuel from.

The profit margin per liter ranges from 100 to 210 per liter.

So, if you sell 2,000 liters a day will make you TZS 100 × 2000 = TZS 200,000. In a month, you will have a profit margin of TZS 30 × 200,000 = TZS 6,000,000.

That figure can vary widely, depending on where the petrol station is located. And the supplier from whom you source fuel from.

For example, if the profit margin from your supplier is TZS 200 per liter. So for that rate, the profit margin per day would be TZS 200 × 5,000 = TZS 400,000.

Again, in a month, that will make you 30 × TZS 400,000 = TZS 12,000,000. So, this is why petrol stations are on every street corner because they make good money. So, everyone wants to jump into this business.

 

Related Project::A Sample Business Plan for Starting and Running a Road Logistics and Transportation Business for Fuel/Petroleum Products in Tanzania.

2.Setting your own lubricant blending/Manufacturing Plant

The demand for lubricant oil such as blended motor oil, brake fluids lubricating greases, and other oil-based additives is huge in Tanzania. That’s why the biggest marketers like Total and Lake oil recently have set up their own lubricant manufacturing facility.

So set up your own Lubricant manufacturing company in Tanzania can be a profitable venture. Although there are several lubricant oil manufacturing companies in Tanzania. But with a good distribution network, quality products, good marketing strategies, and sufficient start-up a new lubricant trading company can win a competition.

3.Gas Retailing/Distribution

Cooking gas or LPG distribution is one of the most profitable oil and gas business opportunities. Yes, it demands medium scale capital investment. You also need to have proper licensing from the relevant government agency. Also, the market for cooking gas distribution is increasing.

Related Project: A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited.

4.Lubrication Oil Retail Shop

Selling engine oil, brake fluid and hydraulic oil et al. is a profitable and highly thriving business venture an entrepreneur who is interested in making money from the oil and gas business value chain should consider. The fact that vehicle owners subject their vehicles to servicing at regular intervals creates a market for lubrication oil products. In recent times, there is an increase in the lubrication oil production sector as it is one business you can readily go into with the hope of making a great profit. The various needs of lube oils in homes, organizations, factories, and industries just cannot be overemphasized because the population of people who have mechanical need for oil has continued to increase over the years. So, for you to start out in this trade, have an expert carry out good feasibility studies.

5.Oil Farm/Depot Storage Services

Imported fuel as stated above are stored in tank farms. Most oil marketers don’t own tank farms and, as a result, always need to store their petroleum products in other tank farms. With a large operating capital, you can construct a tank farm for the sole purpose of leasing it out to oil marketers who bring in petroleum products.

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6. Products (Fuel) Haulage and Logistics/

Due to the increasing demand for petroleum products in East African countries, transportation of these products (for example, premium motor spirit (PMS), diesel, kerosene, and other petroleum products) has opened a lucrative investment opportunity for entrepreneurs. This business is about using fuel tankers (trucks) to distribute petroleum products with transport charges depending on the distance to be covered and the capacity of the truck.

You will have to obtain a license from EWURA to be allowed to transport fuel across the country or to neighboring countries. You will have to purchase a truck and hire a qualified and experienced driver who will haul petroleum products for marketers from the depot to their desired destination.

I would recommend you start by transporting petroleum products to landlocked countries like Uganda, Rwanda, Congo DRC, etc. Many transporters in this business transit fuel to neighboring countries such as Uganda, Kenya, Rwanda, and Congo DRC because there is an unlimited market and is more profitable for transit fuel to the neighboring countries than relying on transporting petroleum products from depots to filling stations locally across the country.

7. LPG Re-filling Plant/Center: 

I’d recommend this to anyone with financial muscle. As a refilling center, you will purchase bulk LP Gas and sell to distributors and consumers. It’s capital intensive and the total project cost for setting up a refilling center in Tanzania is TZS 250 million to TZS 300 million.

8. Establishment of Gas Cylinder Manufacturing Plant: 

It will interest you to know that Tanzania imports the LP Gas cylinders from India. So, there is no functional LP Gas cylinder manufacturing facility in Tanzania, and this presents immense opportunities for aspiring entrepreneurs with sizable amount of capital to set up a gas cylinder manufacturing plants in Tanzania.

                                      I hope this helps. Here at Tanzania Petroleum we are committed to champion extraordinary outcome by accelerating start, run and growing your business

A Detailed Feasibility and Project Report on Starting a Profitable Small Petrol Station with Two Pumps in the Rural Areas and Small Towns in Tanzania

 

The demand for retailing petroleum products – including diesel, petrol and kerosene – in rural areas and small towns in Tanzania is growing at a fast rate.

The growing demand of retail petrol stations in those areas is driven by increasing economic and farming activities.

The farmers constantly require diesel in huge quantities in order to operate their windmill to pump water for their livestock as well as crops, and to operate their tractors.

There is a proliferation of trucks that used to transport crops in rural areas that rely on diesel or petrol. The fishers constantly require fuel to power their fishing boats.

Furthermore, due to limited access to electricity, farmers install generators to operate their windmill to pump water for their crops or to power their homes. Also, locals in those areas rely on kerosene to light up their homes.

Most important is the emerging mode of transportation. There are tricycles – or boda-boda, as everyone calls it – and this has increased the demand for retail petrol stations in rural areas and small towns in Tanzania.

Currently, most rural areas and small towns have good vehicle traffic/volume but the surprising truth is that for decades fewer petrol stations have been set up there.

It is estimated that, in some small towns, locals, farmers and vehicle owners have to travel more than 100 kilometers to the nearby town’s petrol stations to get access to fuel.

But with new facilities, roads and factories being built in rural areas, setting up a petrol station over there can get you a high return on investment.

In reality, there is a great demand of petrol station in rural areas and small towns. Even the Energy, Water and Utilities Regulatory Authority (EWURA) has lessened the requirements for starting petrol stations in rural areas to reduce investment cost, start-up capital and project cost.

The aim is to encourage investors to set up petrol stations and meet the huge demand of fuel in rural areas.

Retail Petrol Station Industry Outlook

Although competition has increased over the past few years, fuel sales continue to increase annually. The most intense competition is in larger urban centers, because most entrepreneurs are looking to have fuel stations in the city centers and more bustling urban parts of Tanzania. This leaves opportunity for independents in smaller rural settings and small towns.

So, setting up your small petrol station in up-country areas and small towns is a successful model for entrepreneurs looking to benefits from the fuel station business in Tanzania.

Introducing………………

A Detailed Feasibility and Project Report on Starting a Profitable Small Petrol Station with Two Pumps in the Rural Areas and Small Towns in Tanzania

Get the Full Version Now

In the full report you will learn the following:

  • What is the structure of a small petrol station business?
  • What is the petrol station industry size and growth?
  • What is the outlook of petrol station industry?
  • What are the licenses, permits and certification required for setting up small petrol stations in rural areas?
  • What is the working capital required for setting small petrol station in Tanzania?
  • What are the built-up requirements for small petrol stations in Tanzania?
  • What is the total project cost for setting up a small petrol station business in Tanzania? (This includes the breakdown of such start-up capital and project cost for setting up petrol stations?)
  • What are the items of equipment and machinery required for setting up a small petrol station business? And what are their prices and where can you buy them in Tanzania?
  • What is the minimal size of land required for setting up a small petrol station with only two pumps?
  • What is the profit margin and income for a small petrol station business?
  • What are the requirements as regards utilities, electricity, water, salaries and overheads for setting up a petrol station business?
  • What are SWOT analysis for setting up small scale petrol station in rural areas and small towns in Tanzania?
  • What are the personnel (manpower) requirements for starting a small petrol station business?
  • What are the market opportunities and market assessment for setting up a small petrol station business?
  • What are the petrol station industry trends?
  • Who are the suppliers of petroleum products/fuel, machines and equipment for setting up your small petrol station business?
  • What are the projected balance sheet for petrol station business?
  • What are the marketing strategies for small petrol stations in rural areas or small towns in Tanzania?
  • Since a petrol station is prone to theft, how do you control theft in your business, so that you can see good returns on daily sales?
  • What are the challenges associated with running a small petrol station business, and how to overcome them?
  • What is the financial projection for small petrol stations?

 

For the complete report for setting up and running a LP Cooking gas business  in Tanzania, make a payment of $100 (or its equivalent in Tanzanian Shillings TZS 200,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255768183677 or +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com. The moment we receive your email or SMS and we confirm your payment, the report will be delivered to your email address (in PDF) within fifteen minutes.

You can then download it and read it on your smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Growing Demand of Liquefied Petroleum Gas (LP Gas, Cooking Gas) in Tanzania

 

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019.

Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Related Project: A Detailed Feasibility and Project Report on Setting up and operating a Profitable Petrol Station in Tanzania

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like you can still be profitable and assured of recovering its entire investment.

We have written a business plan for  a business Plan for setting up and operating an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania:

LP Gas business plan in Tanzania help not only translate your ideas into business and your dreams into reality. It may also used for bank loans, to write business concept note and as a road map  for running your business and should be used as ongoing tool to manage your business and win competition.

A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

A Detailed Feasibility and Project Report on Starting a Profitable Petrol Station in Tanzania

Tanzania offers the largest and fastest growing market for the petrol station business. This could be credited to various reasons such as the growth of the automotive sector, good level of economic development and regulatory encouragement.

In the automotive sector, Tanzania has seen a surge in the number of vehicles in the streets from the late 2000s to date. Roads and parking areas in the cities are congested with vehicles of various types, sizes, brands and model.

In addition, the introduction of the new mode of transportation including motorcycle (popularly known as boda boda) and tricycles (also known as Bajaji) provides growth opportunities for individuals and companies interested in starting and running a petrol station business in Tanzania.

Furthermore, the development of roads and urban cities, and the proliferation of infrastructural projects have increased the demand for heavy-duty commercial vehicles which drives the demand for fuel (petrol, diesel, kerosene and lubricants).

Also, government regulations regarding burning the importation of substandard and fake lubricants drives the growth demand of lubricant and engine oil in Tanzania.

There is still a power-failure problem in the country; so, people depend on generators—both diesel and petrol-powered. They have to buy fuel from petrol stations.

People all over the country need fuel for their cars, trucks, tricycles, motorcycles and other machines and all these vehicles and generators run on diesels or petrol that you can setup in your own fuel station and get huge income selling it.

With the growing demand for petroleum products in Tanzania, there is a proliferation of petrol stations that facilitate intense but healthy competition between each dealer.

But new entrepreneurs with strategic locations, good marketing plans and sufficient start-up capital can win competition in this business.

Introducing…

 

This report answers the following questions:

  • What is the structure of petrol station business?
  • What is the petrol station industry size and growth?
  • What is the outlook of the petrol station industry?
  • What are the three ways to start an oil and gas business in Tanzania and what is the best (and easiest way) to start a petrol station business?
  • What are the licenses, permits and certification requirements for setting up a petrol station business?
  • What is the working capital for a petrol station?
  • What is the total project cost for setting up a petrol station business in Tanzania? and the breakdown of such startup capital and project cost for setting up a petrol station?
  • What is the equipment and machinery required for setting up a petrol station business? What are their prices and where can you buy them in Tanzania?
  • What is the total size of land required for setting up a petrol station business?
  • What is the estimated profit margin and income for a petrol station business?
  • What are the requirements of utilities, electricity, water, salaries and overheads for setting up a petrol station business?
  • What are the personnel (manpower) requirements for starting a petrol station business?
  • What are the market opportunities and assessment for setting up a petrol station business?
  • What are the petrol station industry trends?
  • Who are the suppliers of petroleum products/fuel, machines and equipment for setting up a petrol station business?
  • What are the three ways to become a dealer with oil companies in Tanzania?
  • What is the projected balance sheet for a petrol station business?
  • What are the project financials of petrol stations?
  • How does one set up a petrol station using the brand name of major oil companies in Tanzania like Total PUMA, etc.?
  • What are the marketing strategies that will make huge number of drivers, car users, and motorists to call at your station to buy your fuel?
  • Since a petrol station is prone to theft, how does one control theft in this business so that good returns on daily sales can be achieved?
  • What are the challenges associated with running a petrol station business, and how does one overcome them?

Get the Full Version Now

To purchase the complete feasibility and project report for starting and running a profitable petrol station business make payment of Tzsh 300,000 via TGO PESA, M-pesa or contact us via this number: +255655376543.

 

Alternatively, send an email with the above details to info@tanzaniapetroleum.com.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.