How to Start Filling Station Business

How Really Profitable is Filling Station Business In Nigeria? This could be the question on your mind right now!  Aside from being an oil-producing country, Nigeria is likewise one of the greatest consumers of oil-based commodities in Africa with around 40 million liters estimated day by day utilization of products.

Every one of the large number of cars and trucks on the Nigerian streets and highways keep running on PMS or AGO (oil or diesel) regular.

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Additionally, practically every home in Nigeria has Power Generating Set that works throughout the day to give power and these large number of generators being used keep running on oil and diesel.

The Factories, Businesses, Schools, Hospitals, in certainty everything in Nigeria depends on energy generated from oil based goods Generating sets. And all these oil products are powered just about 100% through Petrol Filling Station business.

As it stands therefore, in consideration of the above, If you can lay your hands on petroleum filling station business of your own, to market every one of these products, you’re in for cash.

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The demands for oil related products are high, and providers appear to not be sufficient. Indeed, even the real oil marketers like Mobil, Total, Oando, Texaco, and so on are continually searching for individual (would be) marketers who have the required skills and experiences that they can support in this business.

Requirement for Petrol Filling Station Business.

1. Register Your Company

One of the essentials for acquiring your permit of working a Petrol filling station business is your endorsement of Operation with the Cooperate Affairs Commission of Nigeria (CAC) and also obtain the necessary tax clearance.

In this way, consolidating an organization name is an unquestionable requirement.

Direct statistical surveying about the location you mean to arrange your Petrol station. This is vital as it will help your basic business administration and shape some portion of your documentation.

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2. Acquire The Necessary Licenses And Permit

Acquiring licenses, endorsement and permit to run a filling station business is essential.

There are around five administrative bodies in Nigeria you may need to consult with and get affiliated with in your journey to get your permit to start full operation and get customary supplies. These bodies include:

  1. DPR – Department of Petroleum Resources
  2. PPPRA – Petroleum Products Price Regulatory Agency
  3. PPMC – Pipelines and Products Marketing Company
  4. NNPC – Nigerian National Petroleum Corporation

It is equally essential to note that you may need to join different affiliations and unions, for example,

  1. IPPMAN – Independent Petroleum Products Marketers Association of Nigeria
  2. NUPENG – National Union of Petroleum and Gas Workers
  3. LAND – Two plots of land is the basic base property necessity to construct your oil filling station business premises. This will give enough space for vehicles to line up and make leave turns. Deliberately arrange cost for good landed property, the costs shifts from areas to areas and from locations to locations.

However, N5million ought to be put aside for two plots of land.

See also: Petroleum Engineering Business in Nigeria

3. Capacity TANK – After getting your property, do the documentation, carry out the best possible land overview, and basic plan.

The ideal thing is to sink the Underground Storage Tank, these tanks shifts in estimations: 30,000 liters, 35,000 liters, 40,000 liters, 45,000 liters, 60,000 liters, and so forth.

I prescribe that you go for high volume tank, similar to the 45,000 and the 60,000 liters with the idea that you expect to store additional fuel. In the event that you go for 30,000 liters’ underground tank and you mean to lift full tanker of 30,000 liters, then you need to dependably hold up until the last drop of fuel in that tank is sold before you’ll go for another turn.

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The petroleum station construction specialist will have the capacity to handle that effectively, I wouldn’t go ahead to tell the estimation, construction determination, and all that.

A skilled building Engineer ought to handle the construction and beneath are the felicities he/she have to set up:

  1. A Bungalow – How enormous or little is totally your decision relying upon the space accessible and what else you need to include. Do you need Restaurant, Supermarket, and Car Wash? At that point, you require greater cabin.
  2. Shelter over you Pumps – The shade developed over petroleum station pumps, it guards the pumps and the oil/fuel attendants against the sun and the rain.
  3. Border fence – It’s an administrative prerequisite to fence the three sides of your petroleum filling station business, leaving just the passageway open for section and exit. In case you’re on a T-Junction, just two sides would be required to fence, the rest two would stay open for simple section and exit from both joining streets.
  4. Flooring – Vehicles of various sizes and limit would make section into your oil filling station business when operational. Your floor must be concrete to oppose the weight from these vehicles.
  5. Standby Generator (25kva to 60kva) – Do you should be told? That power supply isn’t steady in this piece of the world?
  6. To the extent petroleum station is concerned, control supply is relentless for the duration of the day, even the business is shut for the day. Plus, standby generator is one of the prerequisites for endorsement.
  7. 3-6 Pumps (Electronic) – The pump that apportions the fuel, you will require in the vicinity of 3 and 6 relying upon your size and level of endorsement.


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SECURITY – This is in my main arrangements of staffs as a result of the high security hazard in the business of having an oil station because of the inflow of money.

Security in this nation as you and I know is an aggregate wreckage. Until the cashless policy turns out to be completely operational and embraced by each person, security will dependably be a top need in this business.

Equipped thieves want to assault late around evening time and amid the ends of the week when they intend to meet a lot of money. Plan to fight them in all front, enroll the services of private security agents and pay them well.

Ensure you wouldn’t leave a lot of money inside your oil station at all times, security or no security.

See also: 10 Tips to start Fuel Haulage Business in Nigeria

Fuel attendants – You’ll require 2 fuel attendants for each pump, they would move between them, one individual at a time. Factor that out by what number of pumps you plans to have, that is the quantity of fuel attendants you have to utilize.

Clerk – This individual will be responsible for handling the money and keeping records of the money received and disbursed. Utilize an Account and employ a practical productive software to keep exact record of your money developments.

Administrator – His obligation is to ensure everything is in other, both the office and the staffs. He sees to it that everybody is up to his task and reports back to you or to the director.

This individual must be extremely dependable and proficient at what He does, and must not be a trading off person.

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Supervisor – He is the chief person accountable for the general capacity of the oil filling station business and should be involved directly and otherwise, with running the oil business. Each and every other staffs reports to him while he will be responsible to you. Deliberately pick this individual, your business can be made or damaged by him. I’ve seen administrators run businesses down.

In summary, the cost of Setting up a basic petroleum filling station business on a two plot of land contingent upon the location is about N106, 000,000


The costs for refined oil based goods go between.

  1. Petroleum – N150.00 per liter
  2. Diesel – N180.00 per liter
  3. Kerosene – N210.00 per liter.

These implies that in Nigeria where 40million liters is said to be devoured day by day on Petrol alone, a sum of 97.00 x 40,000,000 = N6,000,000,000 is spent on fuel day by day by Nigerians!

Presently, we should expect you purchase a full tanker heap of fuel with most extreme load limit of 30,000 liters.

At the point when the product is totally sold which generally takes under six days to offer (contingent upon where your Petrol Filling Station business is and the demand at that time), the money returns anticipated from one tanker of each of the oil product offers will be:

  • 1 Tanker of Petrol = N2,910,000
  • 1 Tanker of Diesel = N4,500,000
  • 1 Tanker of Kerosene = N3,900,000

The Expected Profit Return from the offer of these products = N3,200,000.

This implies, in a week or something like that, if every one of the product are sold, you’ll be making a profit of 3million Naira, in one month 12million and in twelve months 120million Naira.

Keep in mind that with the removal of petroleum subsidy, so the costs will undoubtedly change within the month. On the whole, you should also consider that there is demand whenever you put resources into Petrol Marketing Business, it must be profiting.

See also: 15 How to Become Dependent oil marketer in Nigeria

Filling Station Business

Your Filling Station Business must not really be in the city like Lagos, Abuja, Enugu, Port-Harcourt, and so on. It can be situated in the any part of the country, especially the rural areas, as these locations are constantly dismissed by the real marketers who favor the urban territories.

Having your Petrol Filling Station business in the rural areas is far more affordable to set up and to keep up and running, and still gives an assurance of economical profit.

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. You would also want to check out these other business ideas 

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