The petrol station making indusrty.

How much money do this guys make?

The info on this guyz is usually locked tight.

All I see is ten staff. Najua minimum wage ni 10k * 10 =100k. Naona pia wachie kaa wanne najua hiyo ni 7.5*4 = 30k. Mechanics BTW are not employees. Hao BTW ata wanafaa kukulipa rent

So ata kabla uanze hesabu za trella imekuletea maguta na foreman ako pale kwa office anajiita manager. Najua ni 130 k tayari down the drain

Hii industry iko vipi

Last I checked kitambo you needed 5M for the franchise plus a roadside piece of land minimum.

Ukijipanga nishtue nkupatie fuel dispenser na 240 bei ya talker

Hata mimi hushangaa hii biz kama iko na any meaningful profit, juu take an example of Nakuru town, there are over 25 petrol stations. & at times, hao wasee huwa wamedozz wakingoja wateja.

I once did some work for some Somali guy who is a Total Dealer operator. With the right location, this is pure paradise that the Joshua was talking about. They bank between 5.8 - 6.2 million daily. Of this amount, profits is about 7.5-9.2%, but on average he says, 8%. Thats like profit of 0.5 millions daily for 365 days a year.

Just like any other business in Kenya, this has also been attacked and now becoming overcrowded. But like captain says, location is key and start up and running capital is high of course.

Huyo Msomali alikuenjoi. Gross margins from selling fuel is approximately 4%.

something something money laundering…

Petrol station convenience stores can contribute alot. Petrol stations with convenience stores are sort of like movie theaters. The primary product is lower profit bait for the higher profit impulse purchases. … Mostly,petrol stations make their money on the food and other products they sell, and they simply use the gas to get you to stop.

Profit ya fuel per litre is fixed around 5-10 KSh, but if they sell you 500 ml of water at 100ksh ama soda ya 50bob at 70bob ,nuts, coffee etc. The shops have higher return margins than the fuel.

Luqman is building petrol stations from mombasa to Nairobi, just few kilometres apart. io ni biashara ya low margin high volume. fixed costs huwa juu sana.

Hehehe hizo ni hekaya. It’s simple, do a profit margin of about 6 bob (at the higher side) / liter. Kisha you estimate how many lifers are sold monthly or daily. Utashangaa…there are very few well placed stations that even do 1mil liters a month most huchezea hundreds of thousands (300 - 500). And that’s per month. So for fuel sales only, you’re looking at ranges of (1.8 - 3m) monthly. So as someone has eluded to, you maximize on the convenience store, service area, etc etc

Very true a small supermarket, restaurant, chemist, bar and choma grill, makes it worthwhile.

Not really, depending with the landing price, the average margin per litre is between Kshs. 6-6.5

They ran a very successful garage and car wash, run the small convenience store there in and its so conveniently located like a most somali owned trucks fuel there.

I’ve done some audit work for some of the big oil marketing companies in Kenya. Believe me when I tell you Petrol stations make less than 4bob per litre. The OMC’s like Vivo, Kobil, Total etc make 7bob per litre

This guy was laundering money. 7%???I have worked in Petroleum.
Hakuna margin kaa hiyo.
A Total dealer??? Hmmm…

We may have met at some point somewhere…

I have a friend who owns 3. It’s true. Most of the money is made from non-fuel related sales.

The ninja has been running the petrol station business for several years. Almost all his friends lorries bound for Congo, Uganda Rwanda, South Sudan fuel here. Even some of the major bus companies are contracted to fuel here. He earned a good reputation from time immemorial.

You can never go wrong in this industry.
There is a petrol station in the hood small with two pumps only and they have transeast trailers, lorries that fuel there daily.
Another one is Gaz right here in Kampala.
Every morning I see trailers offloading max of five.
Now they have stations in every town I know in this country.
I hear that a bank can never deny you loan for this business.
Those in banking can confirm this.