Even if he has a good reputation, it is impossible to make good margins with a petrol stations because the margin is fixed by the ERC. The likes of Total, Vivo and Kenol Kobil get their large margins from three other areas.
- The sale of lubricants and LPG whose margins are not subjected to ERC controls
2.The use of Petrol Station land for non Petroleum purposes like Total’s Bonjour and KFC, Shell’s agreement with Tuskys and Kenol Kobil as well as Oil Libya’s leases to Chicken Inn, Creamy Inn and Pizza Inn on some of their petrol stations. Shell also has specialized Repair Centres like the Pirrelli Tyre Centre at Shell Changamwe. - The importation of fuel from outside through the OTC which earns oil companies margins nearly thrice the retail sales, but the OTC has been dominated by the large companies like Total. Not small individual retailers.
That is why we are all telling you that his margins are small because they are out of his control. ERC makes sure that retailers get at most sh 3.89 (or is it sh 4 now) per litre, So no matter how much fuel you sell, the margin rate remains the same. Especially if the retailer does not even do wholesale, hakuna pesa anapata sana.
On the other hand wholesalers invest literally billions make their margins, that is why they are not more than 6 out of the 90 plus petroleum companies we have.