Some time back, i was suffering from business ideas constipation- you know, when the idea that comes your way is beyond your capabilities. After lots of research, i gave up but not before i thought of maybe giving the details to any talker here who maybe interested.
Ideally this is not those massive filling station you see around, but a pump or two in those populated areas where matatus population to that of human is 1:2. Back to thread; for village billionaires who need to be partners with Total visit; http://www.total.co.ke/
Now to the village millionaires here we go:
Location
your business should be located in a upcountry setting, ae settlement(incase you want a petrol pump for nduthis or kerosine),r in slums in the urban areas or congested urban areas.
Set up your business in an open place by installing your petrol storage tanks underground(as per regulations)and serving your customers in the open or install your tanks underground and serve from an enclosure(for kerosene). Due to health and safety concerns, you are advised to operate from a well ventilated area. Choose a strategically located busy area easily accessible and visible.
Licensing
Ensure that you obtain a business permit (Ksh7,500 – Ksh15,000) , fire certificate and a health certificate for your premises from the county government before you start to operate your kerosene business. You should also install a functional fire extinguisher within the premises.
Before you set up, please remember also to visit National Environmental Authority (NEMA) to confirm whether your kerosene business will need certification or not.
For more visit https://www.wikiprocedure.com/index..._Licence_to_store_Fuel_and_petroleum_products
Supplies
Many of those in this business are supplied by distributors who deliver regular supplied depending on the need. There are a number of distributors such as Petrogas, Mwarabu, K K Kerosene Distributors, just to mention a few. When setting up your kerosene business, just walk to any petrol station in the area and ask for the contacts of the suppliers.
These distributors will commonly expect you to order a minimum of 1,000 litres. Some major dealers order as much as 6,000 litres.
umps and Storage tanks
You will need a pump to dispense fuel to your customers and a tank to store your supplies. You have options of getting a new pump or settling for a refurbished one. Whenever petrol stations close down or renovate, their pumps are sold off. Those who buy them service or refurbish them then sell them off. These are the pumps which end up in many kerosene businesses.
The second hand pumps cost roughly Ksh110,000 – Ksh120,000. A workshop along Outer Ring Road in Umoja one sells these pumps. There are also other dealers on Thika Road. If you have more capital, you can opt to buy a new pump to start with. Just visit P J Petroleum Equipment Ltd, Thika road behind Safari park, just before USIU. for mombasa branch Sparki House along Jomo Kenyatta Avenue. http://www.pjpetroleum.co.ke/
A new pump will cost about about Ksh150,000.
There are many different models of pumps in the market therefore you need to be careful not to buy a cheap one with no spares or after sales support. Brands known to give good service are Wayne, Gilbarco, Tokheim etc.
The storage tanks are also available from those who deal with these pumps. Many of them are also from closed down petrol stations, refurbished and then sold off as second hand. The price of the tank will depend on the storage capacity. There are a number of kerosene dealers who use several 200 litre drums as storage tanks to avoid buying the bigger tanks.
Sales depends on your location and what's your commodity, i wont give you much hype about sales. This is not quail business!
Employees
You will need an employee or an assistant to help with the sales in your business. This is a cash business and sometimes you will handle very small denomination (coins). You will therefore need a very trustworthy and reliable person to assist you with the business.
Salaries for staff vary but an average of about 9k per month.
Challenges
Your fuel business will face some challenges mostly attributed to your distributors and regulations. Some distributors may not be honest enough to supply you with the exact amount you ordered and paid for. If you are not careful, they may deliver less than you paid for and you will be surprised when you end up with losses.
Sometimes regulations given by Energy Regulatory Commission (ERC) may make you register losses. For example ERC may reduce petrol prices when you still have a bulk of your previous supply at a higher price in your storage tank. In such a case, you will be forced to sell at the same price you bought at or even lower, incurring heavy losses.
If you ignore these price directives, you may end up paying heavy fines if caught, therefore, be ready to face these challenges without going against the directives.
Finally; Not to sound discouraging but it is quite a hustle. The levels of approval are crazy from one government office to the other and a lot of requirements. *** HOHO guys, they needed too much(boot licking and hongo) for approvals.
Good luck fellow villagers.
Ideally this is not those massive filling station you see around, but a pump or two in those populated areas where matatus population to that of human is 1:2. Back to thread; for village billionaires who need to be partners with Total visit; http://www.total.co.ke/
Now to the village millionaires here we go:
Location
your business should be located in a upcountry setting, ae settlement(incase you want a petrol pump for nduthis or kerosine),r in slums in the urban areas or congested urban areas.
Set up your business in an open place by installing your petrol storage tanks underground(as per regulations)and serving your customers in the open or install your tanks underground and serve from an enclosure(for kerosene). Due to health and safety concerns, you are advised to operate from a well ventilated area. Choose a strategically located busy area easily accessible and visible.
Licensing
Ensure that you obtain a business permit (Ksh7,500 – Ksh15,000) , fire certificate and a health certificate for your premises from the county government before you start to operate your kerosene business. You should also install a functional fire extinguisher within the premises.
Before you set up, please remember also to visit National Environmental Authority (NEMA) to confirm whether your kerosene business will need certification or not.
For more visit https://www.wikiprocedure.com/index..._Licence_to_store_Fuel_and_petroleum_products
Supplies
Many of those in this business are supplied by distributors who deliver regular supplied depending on the need. There are a number of distributors such as Petrogas, Mwarabu, K K Kerosene Distributors, just to mention a few. When setting up your kerosene business, just walk to any petrol station in the area and ask for the contacts of the suppliers.
These distributors will commonly expect you to order a minimum of 1,000 litres. Some major dealers order as much as 6,000 litres.
umps and Storage tanks
You will need a pump to dispense fuel to your customers and a tank to store your supplies. You have options of getting a new pump or settling for a refurbished one. Whenever petrol stations close down or renovate, their pumps are sold off. Those who buy them service or refurbish them then sell them off. These are the pumps which end up in many kerosene businesses.
The second hand pumps cost roughly Ksh110,000 – Ksh120,000. A workshop along Outer Ring Road in Umoja one sells these pumps. There are also other dealers on Thika Road. If you have more capital, you can opt to buy a new pump to start with. Just visit P J Petroleum Equipment Ltd, Thika road behind Safari park, just before USIU. for mombasa branch Sparki House along Jomo Kenyatta Avenue. http://www.pjpetroleum.co.ke/
A new pump will cost about about Ksh150,000.
There are many different models of pumps in the market therefore you need to be careful not to buy a cheap one with no spares or after sales support. Brands known to give good service are Wayne, Gilbarco, Tokheim etc.
The storage tanks are also available from those who deal with these pumps. Many of them are also from closed down petrol stations, refurbished and then sold off as second hand. The price of the tank will depend on the storage capacity. There are a number of kerosene dealers who use several 200 litre drums as storage tanks to avoid buying the bigger tanks.
Sales depends on your location and what's your commodity, i wont give you much hype about sales. This is not quail business!
Employees
You will need an employee or an assistant to help with the sales in your business. This is a cash business and sometimes you will handle very small denomination (coins). You will therefore need a very trustworthy and reliable person to assist you with the business.
Salaries for staff vary but an average of about 9k per month.
Challenges
Your fuel business will face some challenges mostly attributed to your distributors and regulations. Some distributors may not be honest enough to supply you with the exact amount you ordered and paid for. If you are not careful, they may deliver less than you paid for and you will be surprised when you end up with losses.
Sometimes regulations given by Energy Regulatory Commission (ERC) may make you register losses. For example ERC may reduce petrol prices when you still have a bulk of your previous supply at a higher price in your storage tank. In such a case, you will be forced to sell at the same price you bought at or even lower, incurring heavy losses.
If you ignore these price directives, you may end up paying heavy fines if caught, therefore, be ready to face these challenges without going against the directives.
Finally; Not to sound discouraging but it is quite a hustle. The levels of approval are crazy from one government office to the other and a lot of requirements. *** HOHO guys, they needed too much(boot licking and hongo) for approvals.
Good luck fellow villagers.
