Have you thought of starting a kerosene business in your area or even supplying it to retailers and companies? Kerosene is one of the most essential petroleum product in Nigeria and is used extensively in both rural and urban areas. Almost every home make use of Kerosene in Nigeria in one way or the other. This is why people always experience hardship whenever kerosene goes scarce.
Kerosene is equally one of the petroleum product in Nigeria that make huge money for the oil and gas entrepreneurs. People are said to be making millions of naira in the business everyday and from my findings, I can tell you it is a business that worth investing into. It is so lucrative that you can make your entire investment capital back from your first month sales!
Why Is Kerosene Business In Nigeria Very Lucrative?
One basic reason for the profitability of Kerosene is the high demand for the product caused by the very high population of low income earners in Nigeria. 11,000,000 litres of Kerosene is said to be consumed everyday and the demand can only get higher due the ever increase in population.
Another reason is lack of proper supply of electricity in Nigeria. Most homes depend heavily on Kerosene for their cooking and other home energy related purposes and simply can not do with the product.
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Because it is a product that is in high demand, dealer in Kerosene make quick sales and return back for another round of supply. The result is that they make more and more profit as the around trips continues.
The disparity in the product pricing is probably the biggest reason why Kerosene business is very lucrative. Most people are ignorant of the real official price of DPK but the dealers knows exactly and are cashing on peoples ignorance to make huge profit even if it is unjustified.
Kerosene is officially sold at N50 by the NNPC. From NNPC you can land the product at unit cost of N50 per litre and sell for N100 per litre.
All you need to do is to know your way, that is what filling station owners and other dealers do. Though I don’t support sharp practices and taking advantage of peoples ignorance but that isn’t my duty to control, it is the duty of the Government and the price regulatory body.
If you lift 10,000 litres of Kerosene from the NNPC or other major dealers like the Capital Oil, sell for 100 and gain at least N50 per litre, you will gain N50 x 10,000 = N500,000. A dealer confirmed that they make N1,900,000 profit from 33,000 litres of Kerosene.
What You Need To Get Into Kerosene Business
Kerosene business is one of the easiest business to start and the capital requirement is very very minimal compared to other oil and gas related businesses. Everything put together may not cost more than N700,000 at most N1,000,000 depending on the level you want to start from.
SEE ALSO: How To Start Petroleum Products Marketing In Nigeria
Here are some of the things you need to get you started as soon as you can.
1. Business Location – Since the sale will be from the surface tank, you will need a business place or location where you can put your tank.
Any place where there is reasonable population of people is ideal for the business. It could just be in front of your resident or the nearest major road side. If it is in front of your resident, you wouldn’t need to spend extra money for the rent.
In which ever way, you may just budget N30,000 at most for that. In some cases, you may even get it for free depending on who you know.
2. Surface Tank – The Welders will construct a very good surface tank for you. Look for a very good welder that is not far from the proposed business location to ease the cost of transporting the tank. Construct 10,000 litres volume tank but let them make it 10,500 litres to be able to accommodate all your Kerosene.
You can do 15,000 litres if you want. It wouldn’t cost you more than N100,000. Make sure it is properly welded to avoid leakage. Coat the inside and outside against rust, the welder will do that as well.
SEE ALSO: How To Setup Petrol Filling Station In Nigeria – All The Requirements
3. Source Your Kerosene – Independent Marketers controls more than 60% of Kerosene sales, while NNPC controls maybe 40% of the sales through the Pipeline and Product Marketing Company, a subsidiary of NNPC. You can buy directly from the source. I am seeking for additional information how you can get it from there and will update here very soon.
You can get the product from other Independent marketers, Capital Oil Ltd and the rest. There are other countless sources where you can buy Kerosene but beware of adulterated product. You may be arrested if the Kerosene get exploded in peoples home.
Hello Darlington,
Thank you for the info. Very useful indeed. I have a cousin who wants to go into the kerosene business but has only 200,000 naira. Can she start anything with such an amount?
Sure he will even with less than that. You can start with what you have, then as your profit comes, you reinvest it until you get big.
Darlington please I seriously want to go into this business. please can you help me with the details of how to go about it with at least 300 000 including metre and the purchase of the kerosene please thank you
What about government regulations
can one get a marketer who you can form partnership with? may be buying on credit and paying after sales.
what about government regulations
Pls how can i get a good supplier, with good price
do i need to be licensed to distribute kerosine on a wholesale/retail level? how do i source for the product? how do i test for adultrated and original kerosine?
No, not needed any license to sell kerosene with surface thank by the road side. By from NNPC or Capital Oil
Sorry but my enquiries got me to know that you require DPR license to sell by the road side and that your surface tank should not be more than 5000ltrs. Speaking of dealing directly with capital oil or NNPC for 10000ltrs, the possibility of that happening is….
…To get 10000ltrs of kerosene from NNPC is a pipe dream as the minimum you can get is 300000ltrs.
You will need a DPR Peddler's permit/License if you are supplying or retailing in large quantity and register with the Kerosene Peddler's Union probably. The reason is in case of scarcity, that DPR would take you as kerosene hoarder. I will write full article of this soon.
i read in one of ur articles earlier dat u dont need a license to do below 10,000litres, and u ar talking about being taken as a hoarder here. pls explain. do one need license or nt?
tanx for the info, but i really want to know how to buy product directly from the company. do i need a license to start, and how much to hold to start buy from the company.
pls wat is d procedure if sm1 wnt 2 start with btw 200 and 300k
thank so much for this wonderful information,
I have seen a location but its inside a market that functions every 4 days, Is this place a good location?
and i went to sort out price to construct 15000 ltr, i was told its #300,000
Location in the market is good but N300,000 is very high for the tank construction. Try to get better bargain elsewhere.
I have a tough steel surface of over 1000lt capacity for 100000k
Good day Darlington, I would like to have a full business plan of a 30,000 Litre kerosene tank business to be situated in Ebonyi state.A good business plan is the major requirement for me to obtain capital/loan from an investor for this business.I really need your help in this as the deadline for the loan procurement is in a week's time.I would be looking forward to hearing from you soon!…Thank you
Good day darlington, pls how can i get the nnpc's contact so that they could supply me the kerosene in my area?
Good day Mr Darlington, am a student so am left with the thought of CAN I START THE KEROSENE BUSINESS WHILE IN SCHOOL. Can it be monitored by an hired staff.
Pls Darlinton Omeh, what's d current price of kerosene frm major dealers/NNPC?
Darlinton do u know how long kerosine can be stored? I mean does kerosine expire after so many years.. I want to store some kerosine and travel, then when i return, i wil start selling
justice, please mr darlinton how do i get my licence for kerosene
Good morning Mr Darlinton. I love what you've done for us.
I need to you to help me with the major details on how to get this product from either Capital Oil Ltd or NNPC.
I'm a young undergraduate that seek to Develop. The Competition in the buyer's market is not a threat. I can stand the heat.
All I want is the procedure to get the product. I reside in Abuja. Capital Oil Ltd is sited in Lagos.
Educate me on how to get the product from the company
Good day I will like you to shed more light on this business,I have already started though with 1 drum.I intend to go further and I need to know the dos and donts in the business.thank you.
I love dis piece….
I want to ask how much the HANDPUMP is sold?
please DARLINTON OMEH i want to start the kerosene business with a 33,000 liter truck and 33,000 liter surface tank what procedures do i need to get i made some enquirers with DPR and they said i cant have more than 5,000 liters
You can't store 33,000 litre at once in your compound or business premises. Remember that 33,000 little is equivalent to full load of 18 tires trailer tanker? That will be too much to store at once. Get it bit by bit (5,000) each, except you want to sell it from the tanker.
Hello please i want to start the kerosene retail business with 5000 litres, how do i get it directly from the source and do i have to get license froem DPR
i WANT TO SELL FROM TANKER, PLEASE WHAT IS THE PROCEDURE? THANKS
What is d current price of DPR from nNPC as at today
Darlinton,I want to start kerosene business with #100,000.00 Kindly advice on how to go about it.
Hello Darlinton, i love this idea, am a student and want to start the business with #100,000.00 please kindly advice on how to go about it.
Hello mr Darlinton, thanks for your beautiful write-ups.
Please I want to do mobile sales, how feasible is this and how/where can I get truck to lease.
Sorry I’m a little bit confused. What do you mean by Mobile sales?
please enlighten me more,i called the DPR OFFICE IN MY STATE THAT I WANT TO KICK OFF A 9000 LITER KEROSENE RETAIL,AND I WAS TOLD I NEED DPR LICENSE ,HOW TRUE IS THIS?AND IF IS FALSE HOW DO I GO FOR THE LICENCE AND THE REQUIREMENTS,PLS.
Infact, you are a blessing. You know too much. How about inviting you for a seminar?
Thanks so much for this brilliant idea, pls can i contact of DPR so as to make findings regarding there stand in this license issue.
hi darlinton..is there any ways u could elaborate more as im really intrested..how do i contact u or maybe we could discuss further through email..
good morning darlinton,
i will like to go into the kerosine business, pls how can i go about it and like how much can i start with a small tank.
thanks.
Am so happy this article is a God sent, including the writer
Oluchi this is nii from Ghana also want,to come,to Nigeria and invest in kerosene business but for now want a partnership so u can contact me on
I intend to add this business to my cooking gas refilling business. Please Darlington I would need more current
details about this biz.
ok.a very good and informative write up. please sir i have one question,as a starter if i want to start up with 1,000litres please how do i go about it? where is best for me to source the product and at what price?
Hello all, I’m about starting d kerosene biz but would need one or two people to partner with me. I already got a shop for the proposed biz. And I have a supplier for kerosene at a very reasonable rate. Profit on d sales of the business will be shared equally between us as partners. If interested; call or whatsapp me on.
I Can be reached on zero. Nine. Zero. Five. Eight. Three. *Seven. Nine two. Five. One
Hello House, i went out in search of Tanks and was told at the fab yard that a 10,000L TANK WILL COST ME 250K, another man who says he can fabricate for me his asking for 200k for the tank, please help, infact all i need are 2 sets 5,, 000L Tanks i need helpon how to get this tanks and better pricing, please email me if you have a goos source.
thank you
Hi, Mr name is Joaness and I work as mechanical engineering technician in a Refinery where we build and used different types of high or low temperature chemical storage tanks, if you need tank at an affordable price just email me here
Joaness please am interested in these tanks how much does it go for?
pls I live in Abeokuta and am interested in the business,where/who can I get my supplies from.t
haks
Hi Darlington, please how do I get a license to sell kerosene and also how do I get the connection to buy direct from the source
Thanks you
Anybody in Nigeria can contact me nii from Ghana want to do business in the kerosene sector
Hy Mr Darlington pls I want to start a kerosine business with the sum of hundred thousand naira pls how do I go about it.
Do you think Kerosene business will be a great idea in Delta State, especially in Warri where a lot of times i see people use gas and petrol more often?
How do i get cheap and affordable supply of kerosene in benin city, edo state nigeria. i am about to venture into the kerosene business.
how do I get cheap and affordable kerosene in Ibadan
pls, how can I get kerosene at #50 per litter
How do have go abt dis business starting with the sum of 100,000 naira
How much wholesalers will buy per liter
very inspiring thanks alot mr.Darlington
for your special coashing ,it’s encorage my interest , on oil and gas
Hello sir,
Good afternoon
I am wondering if this artcule is recent and if i can still rely on the information given here.
Also pls how can i get a license from NNPC and affordable tanks
Many thanks
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hello i want to start kerosene business please what is the least amount to start with
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