Petroleum Refinery is a Lucrative Business Opportunity in Tanzania

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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 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.

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

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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

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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.

Our Services
Our eBooks
Our Feasibility Reports

 

 

Pre-feasibility Report For Starting LPGas Refilling Plant in Tanzania

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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

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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

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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

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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

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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

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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?

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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.

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

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 1. Executive Summary

Company Overview

ARA Transport is a fully indigenous enterprise that plays a pivotal role in the energy, logistics, and transportation sectors in Tanzania and the broader East and Central African regions. The company is registered and licensed to transport petroleum products, offering comprehensive logistics services that meet local and regional demands. Founded in response to the growing need for efficient and reliable petroleum transportation, ARA Transport has built a reputation for safety, reliability, and customer satisfaction.

Market Rationale

The formation of ARA Transport is driven by the increasing demand for petroleum products across Tanzania and its neighboring landlocked countries, including Malawi, Zambia, Uganda, Burundi, Rwanda, and the Democratic Republic of Congo (DR Congo). The rapid economic growth in these regions has led to heightened energy consumption, necessitating robust logistics and transportation solutions to ensure an uninterrupted supply of petroleum products. ARA Transport aims to bridge this gap by providing state-of-the-art transportation services tailored to the unique needs of its clients.

 Services Offered

ARA Transport specializes in the road transportation of a variety of petroleum products. The company’s portfolio includes the following:

  1. Automotive Gas Oil (AGO) – Diesel: Commonly used for fuel in diesel engines, particularly in commercial vehicles such as trucks and buses.
  2. Premium Motor Spirit (PMS) – Petrol: Essential for the operation of motor vehicles powered by gasoline engines.
  3. Illuminated Kerosene (IK): Often used for lighting and cooking purposes, especially in regions where electricity access is limited.
  4. Jet-A1: Aviation fuel utilized by aircraft, critical for both domestic and international air travel
  5. Heavy Fuel Oil (HFO): Used in power generation and in the marine sector.
  6. Industrial Diesel Oil (IDO): Employed in industry for machinery and other diesel-powered equipment.

 Operational Excellence.

To ensure optimal service delivery, ARA Transport maintains a fleet of clean, well-maintained trucks that are regularly inspected to meet stringent safety and comfort standards. The company’s drivers are highly trained and certified to handle hazardous materials, adhering to both local and international safety protocols.

The emphasis on maintaining high safety standards is reflected in routine inspections and maintenance of the transportation fleet. This proactive approach helps to preclude operational disruptions and uphold the company’s commitment to safety and reliability.

Target Customers

ARA Transport serves a diverse clientele, including:

  1. Businesses: Companies requiring timely and efficient delivery of petroleum products to support their operations.
  2. Government: Public sector entities that depend on a consistent supply of fuels for various functions and initiatives
  3. Oil Marketing Companies: Firms involved in the distribution of petroleum products that rely on third-party transportation services to reach their end consumers.

4.Petroleum Transportation Companies: Entities specifically focused on the logistics of petroleum products, which can subcontract ARA Transport for their hauling requirements.

 Strategic Importance

Positioned as a key player in the Tanzanian and regional fuel supply chain, ARA Transport contributes significantly to the economies of the countries it serves. Efficient fuel logistics are critical for economic stability and growth, as they influence the cost and availability of energy, which in turn affects all other sectors of the economy.

 Regional Scope

Tanzania, due to its strategic location and developed infrastructure, serves as a central hub for petroleum transportation. This enables ARA Transport to efficiently transit petroleum products to landlocked neighboring countries, facilitating regional trade and energy distribution. The company’s services support these countries’ import needs by leveraging Tanzania’s access to the Indian Ocean and its well-established network of pipelines and railways.

 Technological Integration

ARA Transport employs advanced logistics management systems to optimize routing, ensure timely deliveries, and manage maintenance schedules. By integrating technology into their operations, they can maintain high levels of efficiency, minimizing delays and reducing operational costs. Real-time tracking systems also provide clients with up-to-date information on their shipments, enhancing transparency and trust.

Competitive Advantage

Several factors set ARA Transport apart from its competitors:

  1. Safety and Compliance: By strictly adhering to local and international safety standards, the company ensures the safe handling and transportation of hazardous materials.
  2. Reliability: With a well-maintained fleet and trained drivers, ARA Transport guarantees timely and efficient deliveries.
  3. Customer-Focused Service: The company’s proactive customer service approach ensures that clients’ specific needs are met, and any concerns are promptly addressed.
  4. Regional Expertise: ARA Transport’s deep understanding of the regional market dynamics and regulatory frameworks allows them to navigate the logistical and bureaucratic challenges unique to East and Central Africa effectively.

Sustainability and Corporate Responsibility

ARA Transport is committed to sustainable business practices. This includes minimizing the environmental impact of their operations through the use of fuel-efficient vehicles and implementing best practices in waste management. The company also engages with local communities, contributing to social and economic development initiatives in the regions they operate.

Future Prospects

Looking forward, ARA Transport plans to expand its fleet and extend its services to more countries within East and Central Africa. Continuous investment in technology and staff training will ensure that it remains at the forefront of the industry. As demand for petroleum products grows, so too will the opportunities for ARA Transport to augment its service offerings and clientele.

ARA Transport’s blend of reliable service, strategic regional presence, and commitment to safety and efficiency positions it as a trusted partner in the petroleum logistics and transportation sector. The company’s clear vision and robust operational framework augur well for its sustained growth and success in the dynamic energy landscape of Tanzania and beyond.

Mission Statement

Our mission is to provide reliable, safe, and efficient petroleum transport services. This mission statement elaborates on our company’s aspirations, commitment, and operational ethos in fulfilling this goal.

Operational Scope

Our operations extend beyond national borders, serving countries like Malawi, Zambia, Uganda, Burundi, Rwanda, DR Congo, and Kenya. With a primary focus on transporting petroleum products—from oil depots to various destinations—we ensure a consistent supply of essential fuels such as premium motor spirit (PMS), diesel, kerosene, jet fuel (Jet – A1), heavy fuel oil (HFO), and industrial diesel oil (IDO).

Core Values and Principles:

1. Reliability:
– Consistency: ARA Transport pledges to provide uninterrupted and timely delivery of petroleum products, essential for the socio-economic development of the regions we serve.
– Dependability: We aspire to be a reliable partner to our clients, ensuring our logistics solutions meet their specific needs every time.

2. Safety:
– Hazardous Materials Handling: Safety is paramount. Our drivers are fully trained and licensed to handle hazardous materials, adhering to stringent safety standards to prevent accidents and ensure the well-being of people and property.
– Vehicle Maintenance: Our fleet of trucks is regularly inspected and meticulously maintained for safety and operational efficiency.

3. Efficiency:
– Operational Excellence: We employ best practices in logistics and transportation to maximize efficiency, minimizing delays and optimizing fuel consumption.
– Customer-Centric: Our services are designed to be responsive and adaptable, aligning with the dynamic requirements of our diverse clientele, including businesses, government entities, oil marketing companies, and other petroleum transport firms.

GET THE FULL VERSION

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

 1. Executive Summary

  • Company Overview
  • Mission Statement
  • Goals and Objectives.

 2. Company Description

  • – Business Background
  • – Key Services
  • – Target Market

3. Market Analysis

  • – Industry Overview
  • – Market Needs
  • – Competitive Analysis
  • – SWOT Analysis

 4. Organizational Structure

  • – Leadership Team
  • – Employee Roles
  • – Training and Compliance

 5. Services and Operations

  • – Service Process:
  • – Fleet Management
  • – Safety and Regulatory Compliance

 6. Marketing Strategy

  • – Target Audience
  • – Brand Positioning
  • – Marketing Channels
  • – Sales Strategy

 7. Financial Plan

  • – Start-up Costs
  • – Revenue Model.
  • – Financial Projections:
  • Funding requirements.

  1.  Risk Management

  • – Risk Identification       
  • – Mitigation Strategies.

Get the Full Version Now

Make a payment of US $250 (TZS 500,000) through Tgo pesa, M-pesa to any of these numbers

  1. +255655376543

Once your payment is done, send an SMS to +255768183677or +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 eBook will be delivered to your email address (in PDF 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.