feasibility report on how to set up profitable petrol station business in Tanzania, you will discover it

require 

Tsh 200 million to 1 billion to set up a petrol station in Tanzania especially in town areas. Now huge start-
up costs are not barrier to become a petrol station business owner.

If you’re passionate about starting a filling station and have limited funds. I would advise you it’s pretty
cheaper to set up a mini fuel station in rural rather than in a commercial city. Moreover there less
government requirement for setting up a petrol station in rural areas as the EWURA want to encourage
investors to set more fuel stations in remote locations 

For example, as only a minimum size of 400 square meters of land space, EWURA can approve for mini
fuel stations set up in those areas. And you can start with two storage tanks. Depending on which fuel
products have high demand in your location but you can start with one tank for diesel and one tank for
petrol. All of 5,000 or 4,5000 liters capacity.

How to Get Started With Profitable Mini Fuel Station In Tanzania

1.Business Plan and Feasibility Report.
Modern business start with a comprehensive business plan. To respond with rapid changes in the industry
like regulatory changes and oil price volatility, successful oil and gas business owners have embraced the
business plan for strategic planning as well as to respond with uncertainty across the industry.

The sad reality is that most Tanzanians don’t understand the value of the business plan. Their needs for the
business plan come when they consider requesting a bank loan. 

Technically speaking, in today’s competitive oil and gas business, develop your own business plan will
help you stand out from the crowd. Petrol station business can be lucrative that needs a lot of strategic
planning. Most Tanzanians when they first consider joining the petrol station business were motivated by
high-profit margin per liter rather than the total sales volumes that the petrol station business generates.

It is not a secret that the petrol station business can make a profit margin of 100 to 300 per liter. But since
the business generates a solid profit margin does not mean it would be profitable for you.

Let’s say your margin is TZS 200 a liter and you sell only 300 a liter per day. That will make you less
money than some someone who has total sales volume around 6000 liters a day.

Hence why I strongly recommend investors to focus on total sales volume versus a profit per liter of fuel.
And a comprehensive business plan can help you forecast your sales projections and help you see what
kind of business you are building. 

2.Getting the Needed Government approval.

To construct and operate a petrol station anywhere in Tanzania, you will need government approval. There
are several approvals you may need. From the National economic empowerment council to EWURA.

I would advise you to hire a consultant to assess if your location is commercial for starting petrol station
business before you start the process of acquiring necessary permit and license
3.Getting EWURA Approval
EWURA is the government agencies regulate the oil and gas business in the downstream sub-sector or
segment of the petroleum industry. EWURA approval comes in two ways:

1. Approval to construct.
After all environmental impact assessment carried out by NEMC, the building permit, and the land title
dead you need to get approval from the EWURA to construct your station. You can’t build the petrol
station the way you want. You have to meet the EWURA requirement. I will advise you to visit the
EWURA office to learn more about their requirement.

2.License to Operate

After you have built the petrol station, you still need EWURA to approve it and give permission to start
selling petroleum products. The license to operate your petrol station cost TZS 1,000,000.