Thank you for Visiting again, and welcome back again. Today, we will look at the cost, How to, requirements and profitability of opening a petrol station in Kenya.
Petrol Station is considered to be a very beneficial business by many investors.
If you open petrol pumps at a decent place, you can make a lot of money. There are many people in the country who want to be the owner of a petrol station but they do not have any information about it.
The government is now giving a great opportunity to open petrol pumps in rural areas and urban areas. To open a petrol station, you need to have a high capital source.
You need to be an Kenyan citizen to become a petrol Station owner. Also, you should be between 21 and 60 years of age.You need to have land to open petrol pump. If the land is not your own, you will have to take a valid title deed from the owner.
The cost of opening petrol station depends on the space and the petroleum company. There are rural and urban two types of petrol stations in the country. So the cost of opening it is also different according to the village and city.
Requirements When Applying for a Permit to Construct a Petroleum Retail Station
- Applicant’s company registration certificates (for the firm developing the
- ID copies of the directors
- Proof of land ownership (copy of title deed in the name of
company/director(s)). In the case of long term land lease, copy of duly
executed lease agreement in the name of the Applicant company.
- Valid EIA license from NEMA specifically authorizing development of
Petrol Service Station.
- Approval to construct acceleration/deceleration lanes from the relevant
roads authority (KENHA/ KURA/ KeRRA whichever is applicable).
- Development permission from the respective County Government
(including County Physical Planning Office)
- Detailed construction drawings by the respective engineers indicating:
a. Mechanical engineer’s drawings specifying materials and design/
operational limitations (Underground petroleum tank(s) designs & pipework layout)
b. Civil engineer’s drawings showing details of Underground tank cradle
& backfill designs; Forecourt layout & surface designs; General drainage
& OWS layout/ designs
NOTE: (1) All drawings are to be done by respective class of professional
engineers or firm(s) registered as such (attach proof). These shall, at
minimum, take into consideration the Kenya Standards for
Petroleum Retail Stations namely and in particular KS 1969:2014 &
(2) Review of an application takes a maximum of 45 days and may be a
subject of site visit if the Commission so requires.
Is it profitable to start a petrol station?
The provision of fuel is one of the essential services across the world. The sale and purchase of fuel contribute to the GDP of the country.
Based on the information provided above, we are going to provide some tips that will help you run a petrol pump successfully.
1. Join a franchise
To run a petrol pump successfully, you will have to contact a petrol retailer. The retailer provides petrol to the petrol station from the petrol depot. The retailer either works as an independent person or a complete organization with a lot of franchises.
The franchise is a kind of brand name that everyone wants to associate with their petrol station. People know that the petrol station with a brand name has the credibility to maintain and therefore, they believe in the quality of fuel provided by the retailer.
If you want your petrol station to make quick sales and also develop the trust of people in a short span of time, you should join a franchise.
2. Connect with fuel suppliers
Different companies port fuel from their source to different fuel stations. To make sure that the petrol station does not run out of petrol at any time, the petrol stations are needed to have a connection with fuel suppliers.
The petrol station is required to purchase thousands of liters of petrol to accommodate the needs of different vehicles with different fuel capacities.
3. Provide different services
These days, petrol stations don’t only deal with the sale and purchase of fuel. Rather, they also provide many other services such as vehicle wash service, repair service, and some deal with selling fuel tanks. If you are running a petrol station and you want to buy a 1000l diesel tank.
4. Use funding
It should be remembered that running a fuel station is just like running any other business. If you think of providing many other services other than fuel, you can increase the profitability of the fuel station. You can choose different areas of the petrol station for funding to boost the profit
To open a petrol station in Kenya, it will cost you between 6,000,000 to 8,000,000 Kenyan Shillings. It is an expensive.
The bottom line
It is not easy to run a petrol station as it requires lots of technical knowledge as to how to run a petrol station and what important points to be taken into consideration. Following the tips can help you run successfully.