Oil and gas Business Opportunity: Start Petroleum Filling Station Business

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Picture of a Petrol Filling Station 
A filling station is a place where premium motor spirit, diesel, cooking gas, kerosene and engine oil et al are stored and retailed to the buyers.
One of the business opportunities in the oil and Gas sector is to open filling station. If you are looking towards starting a business in the oil and gas industry, filling station business is highly thriving and profitable especially if you have chains of filling stations that are located in strategic traffic prone locations.
Mostly supply in Nigeria, as a result of irregular power, commercial activities depend on petroleum products for their source of energy to power their businesses.  Banks, Factories, Businesses, Schools and Hospitals among others   depend on power generated privately from petroleum products or solar energy as their supplementary source of energy. Mostly all these petroleum products are retailed in the Filling Stations.
Therefore, if you can lay your hands on a petrol filling station of your own, to market all these products, you would make cool money.
The demands for oil related products are very high and that guarantees more profits for marketers.
 Type of Marketers
There are two types of Petrol Marketers:
 Dependent Marketers and
 Independent Marketers.
 Each of them has both advantages and disadvantages. You would be allowed to join a group (marketers) per time except you have enough capital to build more than one petrol station. You would be able to use for Franchise and the other for Independent Marketing.

 Dependent Oil Marketer
Dependent Marketer holds the Franchise of a Major oil Marketer to market under their name with your own facility fully branded by them.
Advantages
  • ·        You will build your filling station under the control of a Major Marketer like Total, TEXACO, Oando, etc. 
  • ·        You will inherit the customer of your chosen Major Marketer within where your business is located.
  • ·        You would not need to assign representative to be at the depot on your company’s behalf; Major Marketer has that cover for you.
  • ·        There would be no need to pay for your petroleum products using bank draft, you pay directly into your Major Marketer’s account.
  • ·        Major Marketers have the logistics that deliver you products to your filling station with ease.
  • ·        Major Marketer overall brand advertisements extend to you.
  • ·        You will be enjoying some high level of logistic and business credibility from your major marketer.

Disadvantages
  • ·        There is no opportunity of building your own brand name.
  • ·        Your profits might be lower depending on the prices of products from The Major Marketers.
  • ·        Your operations will completely dependent of your Major Marketer’s terms and conditions and policies.

Independent Oil Marketer
An Independent Oil Marketer is a Petrol Filling Station owner who runs his business under his own name, has a representative and assistant representative at the Petroleum Products Marketing Company (PPMC) depot by NNPC and buys petroleum products directly from NNPC.
Advantages
  • ·        You have brand and marketing logistics under your own name.
  • ·        You get products directly from NNPC Depots at lower prices and gain certain amount per every litre of petroleum products.
  • ·        You can source your product anywhere.
  • ·        Your business is under your own term, conditions and policy.

Disadvantages
  • ·        You must be able to afford the minimum quantity of petrol product from NNPC Depot.
  • ·        You may experience difficulties and delay in transporting your petroleum products.  
  • ·        Advertisements of your brand are your responsibility which cost extra money.
  • ·        Payment for petrol products to NNPC can be stressful because it requires bank draft issued in the name of NNPC and payable to the Central Bank of Nigeria in the state you intend to lift from.
  • ·        You pay the Independent Petroleum Marketers Association of Nigeria (IPMAN) certain amount for insurance and Association fee, each time you lift products.
  • ·        You would have to bear all the risk that is involved in the business.



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