In Kenya, the cost of opening a petrol station ranges from Ksh. 6,000,000 to Ksh. 15,000,000. Land, construction, equipment, stocking, licensing, and insurance are all included in the initial capital.
Make sure you have enough money to run your business once it’s up and running. You’ll need a steady supply of fuel, as well as the cost of transportation and paying your employees.
In Kenya, a small petrol station business can be created in a small space and with little capital. If you buy at least one gasoline pump and upgrade later, you’ll be fine. Consider serving motorists on a small scale.
So you’ll need to set up your little gas station in areas where there are a lot of motorcyclists.
The company, on the other hand, will expand from a small start to a stable one, resulting in bigger earnings in the future.
What is the cost of opening a gas station?
Fuel provision is a necessary service (at least for the time being) that accounts for more than 6% of South Africa’s gross domestic product (GDP). It is also one of the most robust industries in South Africa, and with the right approach, it can enjoy solid earnings even during economic downturns.
How much does it cost to open a petrol station business?
The cost of establishing a local petrol station varies between R15 million and R100 million, depending on the size and location. Furthermore, depending on the cost of development, predicted volumes, and profitability, the operation payment to the oil business ranges between R2.5 million and R15 million. Then there’s the typical working capital requirements for stock and operating expenses, which might range from R1.2 million to R1.5 million. Contrary to popular assumption, when the price of gasoline rises, the petrol station does not benefit. In reality, every R1 increase in fuel price necessitates an additional R100,000 in operating capital for the average service station. The RAS (short for Regulatory Accounting System) retailer margin, as estimated by the Department of Energy, is insufficient, and there is an under recovery of roughly seven cents per litre. What this all boils down to is that while a petrol station’s massive start-up expenditures are one thing, a successful petrol store also requires constant access to fuel.
In Kenya, how can I register a petrol station?
- To continue with your application, click the “apply for a new license” button when you get to the following page.
- Fill in your company’s information and save it. Make sure you use the proper email address. Create a unique username and password for your account.
- A notice from EPRA will appear in your inbox when you open your email. To activate your account, go to our portal using the URL in your inbox.
- Log in to the portal with the username and password you created in step (7) above. Select New Application from the license management tab, then “Storage of petroleum products (excluding LPG)” from the Petroleum Sector, then “Continue with Registration.”
- This will take you to the page Licence Application: Petroleum Business Licence (Except LPG), where you must fill out the appropriate parts.
- Next, upload your scanned papers to their proper locations. These documents include the following:
(i)For limited firms, a CR12 from the Registrar of Companies (not older than one (1) year)
(iv)Legal Copies of Identification Documents for All Company Directors (i.e. IDs/Passports)
(v)A single business permit from the local county government to operate a business
(vi)ENVIRONMENTAL IMPACT ANALYSIS (EIA) LICENSE (IF NEW) OR NEMA ACCEPTANCE LETTER FOR ENVIRONMENTAL AUDIT (if existing)
(vii)Fire Clearance Certificate from the appropriate County Fire Department for the facility
- An EPRA officer will then conduct an inspection of your business. He will inspect the building, electrical tools and equipment.
- In compliance with the requirements of the Energy Act 2006, the officer will offer recommendations to the Petroleum Licensing Committee of the Energy and Petroleum Regulatory Authority (EPRA).
- Collection notices will be sent out via email and text message. The license must be picked up from the ERC’s headquarters. During collection, you must have proof of identity with you.
How much does a petrol station make per month in South Africa?
The convenience store raises the station’s cost, but according to Engen, it earns R309,000 in average monthly turnover in this example. An Engen at the high end of the scale will set you back around R7 million.
How much profit does a gas station make on a gallon of gas?
There’s a reason why nearly all gas stations are also stores: profit margins on gasoline are roughly 2%, so they make the majority of their money on pricey sandwiches and drinks.
Independents, I believe, make much less since they lack the purchasing power and storage capacity of the big boys. I’m not sure how viable it is for some of the smaller businesses to buy ex Rotterdam when the wholesale price is low and sell to us when the price rises again; I’m not sure how sustainable that policy is.
For both petrol and diesel, fuel duty is now collected at a flat rate of 57.95p per litre, with VAT of 20% applied to both the product price and the levy. With petrol costing 1.20 a litre, the government receives approximately 82p from each litre.
Employ employees who are prompt and dependable. Schedule your shifts to ensure that the station’s client traffic is adequately covered. Make the timetable such that a responsible manager is on duty during each shift.
Take inventory on a regular basis. Inventory the amount of gas in your station’s tanks, as well as any counter-vendor transactions like cigarettes, lottery tickets, and money orders. At the end of each shift, inventory these things.
At the end of each shift, run cash register reports. Count the money in the drawer, making sure to include all change. To guarantee accuracy, compare the totals on the report to the cash receipts and drawer.
Make a ledger entry for the shift totals. Run detailed reports for the gasoline tanks, sales inventories, and register receipts at the conclusion of each day. Check your totals and record all sales in your ledger. Make a note of any losses and shrinkage. Every day, deposit the cash from the petrol station.
Encourage your employees’ safety. Employees at cash registers should only be allowed to store limited sums of cash in their registers. Install a drop-safe beneath the cash register to give employees a convenient and safe place to deposit excess cash. At the end of each shift, empty the drop-safes and put any leftover cash in the daily bank deposit.
To ensure the safety of your staff and customers, install shatter-resistant glass, security systems, and surveillance cameras. In less safe places, consider electronic door systems for 24-hour gas stations. Make contact with the police department in your area. To help maintain safety, request that officials visit the station on a frequent basis.
Place inventory orders in a timely manner to ensure that the gas station is properly stocked at all times. When planning your orders, keep in mind the processing time and delivery options offered by your vendor. At the time of delivery, double-check each delivery for accuracy. Any mistakes should be reported right away to the vendor so that repairs can be made quickly.
Make sure your gas station complies with all local, state, and federal regulations. For help with compliance, contact your local Occupational Safety and Health Administration and US Environmental Protection Agency offices. Provide precise information about your gas station to the officials so that they can better serve you.
How much profit do you make per litre of gasoline?
Petrol stations, according to sources, earn Rs3.91 per litre on petrol and Rs3.30 per litre on diesel. According to sources, petrol stations make a 2.75 percent profit per litre, which the Pakistan Petroleum Dealers Association (PPDA) has demanded be increased to 6%.