Welcome to year 2014. May God open doors of favour to us all.
The on-going deregulation of the downstream Oil and Gas sector of the economy coupled with the expected passage of the Petroleum and Gas bill will surely open up the sector for local investors. However i will briefly go through some of the opportunities available aside the petrochemical investments.

(1) TRADING IN LOCAL PRODUCTS
This has to do with the buying and selling of products within the depot. You can purchase some trucks of products available and then resell at the depot for profit. This will be determined by the product price at the depot tamac for that day. We have the interplay of demand and supply at work.

(2) SOURCING FOR LPO
This has to do with sourcing for LPO from companies that are using petroleum products especially diesel. Although the LPO prices are always higher than the depot prices due to the fact that lpo is most times supplied on credit. The major risk here is the possibility of default by the company. So you have to be carefull with the company you want to deal with.

(3) HAULAGE/ TRANSPORTATION
Haulage and transportation of petroleum products all over the country is an integral part of downstream business. It is lucrative if well organised. You can become a transporter and attach your trucks to any of the Major Marketers or the Mini Majors.
It is also possible to attach to already established transporters who will however charge you some commission.You can also hire it out to third parties for use on agreed amount for the lifting of their products.
Bad drivers, mechanics, touts , the multitude of corrupt security agencies among other factors are major problems facing this sector.

(4) DEALERSHIP/ OWNERSHIP OF SERVICE STATIONS

Owning a Petrol Station is also a very lucrative business if cited in a good location. Although it is a capital intensive venture but on the long run it is very lucrative. You need to get approval from DPR. STATE GOVT, FIRE SERVICE before you can be allowed to build. It is possible to lease or rent a station too. The major advantage here is that as a registered marketer, you can source your products from NNPC depots which are cheaper than local depots.

This is a brief summary and does not include the financial implications. I wish all Nairalanders very fruitfull year 2014.

Appraisal of Pricing in Petroleum Industry for Downstream Products in Nigeria. (A Case Study of Total Nigeria Plc Lagos)

the researcher is investigating the extent of economic damage of the fuel scarcity vis-à-vis the factors influencing the pricing  of the petroleum products.

http://www.scharticles.com/appraisal-of-pricing-in-petroleum-industry-for-downstream-products-in-nigeria/

Good day sir.please am interested in this business.
How do I go about it?

NEIGHBOUR:
Welcome to year 2014. May God open doors of favour to us all.
The on-going deregulation of the downstream Oil and Gas sector of the economy coupled with the expected passage of the Petroleum and Gas bill will surely open up the sector for local investors. However i will briefly go through some of the opportunities available aside the petrochemical investments.

(1) TRADING IN LOCAL PRODUCTS
This has to do with the buying and selling of products within the depot. You can purchase some trucks of products available and then resell at the depot for profit. This will be determined by the product price at the depot tamac for that day. We have the interplay of demand and supply at work.

(2) SOURCING FOR LPO
This has to do with sourcing for LPO from companies that are using petroleum products especially diesel. Although the LPO prices are always higher than the depot prices due to the fact that lpo is most times supplied on credit. The major risk here is the possibility of default by the company. So you have to be carefull with the company you want to deal with.

(3) HAULAGE/ TRANSPORTATION
Haulage and transportation of petroleum products all over the country is an integral part of downstream business. It is lucrative if well organised. You can become a transporter and attach your trucks to any of the Major Marketers or the Mini Majors.
It is also possible to attach to already established transporters who will however charge you some commission.You can also hire it out to third parties for use on agreed amount for the lifting of their products.
Bad drivers, mechanics, touts , the multitude of corrupt security agencies among other factors are major problems facing this sector.

(4) DEALERSHIP/ OWNERSHIP OF SERVICE STATIONS

Owning a Petrol Station is also a very lucrative business if cited in a good location. Although it is a capital intensive venture but on the long run it is very lucrative. You need to get approval from DPR. STATE GOVT, FIRE SERVICE before you can be allowed to build. It is possible to lease or rent a station too. The major advantage here is that as a registered marketer, you can source your products from NNPC depots which are cheaper than local depots.

This is a brief summary and does not include the financial implications. I wish all Nairalanders very fruitfull year 2014.