Kerosene business is a very lucrative business in Nigeria because a lot of low income Nigerians use kerosene for cooking and lighting up the house via kerosene lanterns.
Currently if you check carefully you will notice that sometimes the price of kerosene will be higher than petrol,that is to show you that the demand for kerosene in Nigeria is high.
This article will show you how to quickly establish and start your own kerosene business in Nigeria.
Kerosene Business In Nigeria
Before you start your kerosene business in Nigeria,here are some of the factors you need to check out and put in place.
1. License & Certification
You will need a license if your planning to start big,i.e making purchases of over 10,000 liters of kerosene,if however your purchase power is below 10,000 liters it will be considered a small scale business and a license wouldn’t be required.
If your a going into the business on a large scale,it’s imperative to register your business with the Department of Petroleum Resources (DPR) and also the Petroleum Products Marketing Company (PPMC),that way your business will be certified and you can be able to buy your kerosene in wholesale directly from NNPC.
2. Kerosene Tanks For Storage
Its necessary to make arrangements for the storage of your product.
If your starting off on a large scale, then you should consider buying tanks for the storage of your kerosene.
Some tanks can contain up to 200 thousand liters of kerosene,if however you plan to start off on a small scale then you should consider buying 4 – 6 drums that can storage up to 200 liters per drum.
3. Supplies
A small scale kerosene dealer can store up to 15,000 liters of kerosene in his/her residential area,but you have to put some safety measures because petroleum products are flammable.
As a small scale dealer in kerosene you need to have a constant supplier of kerosene near you,so that you won’t run out of your supplies.
Consider buying from registered marketers that purchase from NNPC,although their price might be high,you can also purchase from NNPC mega filling stations.
A Large scale kerosene dealer is licensed to buy kerosene directly from NNPC terminals.
4. Location
You definitely need to be in a strategic location to sell your products.
If you cannot afford to build a filling station,consider setting up a mini depot in a busy remote area,your location should be a residential area saturated with low income earners.
However be careful when dealing with flammable petroleum products for your safety and that of others.
5. Dispensing Pump
To make selling of kerosene easier,safer and convenient,if you cannot build a filling station with several dispensing pumps,you can buy one dispensing pump to be using in your mini depot to dispense fuel to your customers.
6. Petrol Tankers
This is for the dealers of kerosene in large scale that has registered with PPMC and DPR that have access to NNPC terminals.
As a registered dealer you will be buying directly from the depot and convey your products via petrol tankers.
You can then sell to the public or to the small scale kerosene dealers.
7. Capital
Every business requires a start up capital,with about N200,000 – N300,000 you can start up and set up a small-scale kerosene business in your neighborhood.
If however you want to start off on a large scale then you will need about 1.5 million – 2 million naira.
8. Sales Attendant
A filling station needs 4 to 5 sales attendant with one designated attendant in charge of dispensing kerosene from the dispenser to a customer.
If however your a small scale kerosene dealer,then you should consider employing a sales attendant that will be stand by to attend to your customers especially if your located in a residential area that people are in constant need for kerosene.
9. Measuring Unit
As a small scale dealer of kerosene if you cannot afford to buy a dispensing pump,you will then have to improvise and look for other measuring methods.
For example in some locations in Nigeria,kerosene is sold as “full bottle”, “half bottle” at a particular price.
10. Experience
In every business,you learn by experience and with time you will be able to adopt good practices that will help you to earn more.
If you have any comments,suggestions,questions or contributions,use the comment box.
