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Is N500k Enough To Start Kerosene Supply Business? - Business - Nairaland

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Is N500k Enough To Start Kerosene Supply Business? by delampy(f): 5:05pm On Jun 21, 2010
Hello NL,

Please help, all Oil & Gas/Business people. Kindly confirm if it is possible to start Kerosene supply business with N500,000. By supply business, I mean buying like 5000 litres from the depot and supply to wholesalers/large retailers. Is this possible?If it is, what is the possible margin and the process?
Please help!!!I am trying to choose between recharge card & Kerosene sales.

Thanks.

1 Like

Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 5:25pm On Jun 21, 2010
N500,000 can certainly start you off. But you just need guidance that's all.

Kero biz vs recharge card sales?

Kero biz anyday. Recharge card market is saturated and you will have a lot of competitors. You will need aggressive marketing to make money.

For kero biz, you need no marketing. Once you are up and running in a good location, customers will locate you. They come to you, not you going to them.
Re: Is N500k Enough To Start Kerosene Supply Business? by delampy(f): 6:14pm On Jun 21, 2010
@ stagger,

Thanks for your response but I'm not going to stay in a location. I'm going to be supplying to locations. What edge do I need to have to break into that market?

Please help with the other questions too. Thanks
Re: Is N500k Enough To Start Kerosene Supply Business? by DrKitaun(m): 1:55am On Jun 22, 2010
U want to be going to them with what qty ?
Re: Is N500k Enough To Start Kerosene Supply Business? by Fhemmmy: 2:04am On Jun 22, 2010
I will like to know more about this kinda buz, need something doing for my loving mother
Re: Is N500k Enough To Start Kerosene Supply Business? by DrKitaun(m): 2:23am On Jun 22, 2010
^Stagger can help u out then . . .nice one !
Re: Is N500k Enough To Start Kerosene Supply Business? by Fhemmmy: 2:27am On Jun 22, 2010
Dr Kitaun:

^Stagger can help u out then . . .nice one !

Thanks
Re: Is N500k Enough To Start Kerosene Supply Business? by AYINDEMUH: 2:34pm On Jun 22, 2010
will be good to know more about the topic.

1 Like

Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 2:39pm On Jun 22, 2010
For those that want to supply retailers (PEDDLING).

You need a truck of about 13,800 litre size minimum. If you have the money, you can get a 30,000, 33,000 or 45,000 (rare; only Mobil and NNPC seem to have such trucks). You do not need to buy one. You can lease, but you need to write the lease agreement properly as well as get the truck details (picture, calibration meter, logo, transporter's name, etc) as you will need this for the registration of the truck with DPR as part of the peddler's license requirements.

Register your driver with the PTD (Petroleum Tanker Drivers) sub-branch of NUPENG. Once you have the DPR Peddler's permit, also register with the Kerosene Peddler's Union, get your capital, go to any of the depots where they have products (of course has to be the closest to your supply base) and start your business. The money is made via regularity of supplies (as in targeting lifting maybe three truckloads weekly or more) rather than on maximising profit margin per litre. Get my drift?

For those who want to retail.

You need to get a good location (where the population density is high). What I mean is you are better off selling in a place like Agege with loads of middle and low income earning people who definitely must use kersoene as cooking fuel and other lighting purposes) than siting it in a place like Victoria Island.

Then construct your tanks. You can start with a 5,000 litre capacity (which is where N500,000 can actually suffice, but not for higher quantities). Go to the depot and lift your products. If you want added protection, you can apply for and get a DPR permit.

I forgot to mention that in both scenarios, you need a Tax clearance, Vat certificate and a sponsor (could be a major or independent marketer) for you to get the necessary permits.

This in a nutshell is how it goes. Of course, the process is not as simplified as I have stated it. I just tried to breakdown the process for everyone's understanding.

8 Likes

Re: Is N500k Enough To Start Kerosene Supply Business? by pac2: 6:49am On Jun 23, 2010
Is it profitable to buy, hire a truck and supply to ready retailer? will there be need for a permit from DRP?

1 Like

Re: Is N500k Enough To Start Kerosene Supply Business? by guru01(m): 11:38am On Jun 23, 2010
can #100000 start supply business or retailing business?
@stagger
thanks for your information.
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 12:09pm On Jun 23, 2010
guru01:

can #100000 start supply business or retailing business?
@stagger
thanks for your information.

N100,000? Quite frankly, no.

Combine with 4 more people to raise your capital base.
Re: Is N500k Enough To Start Kerosene Supply Business? by oluomoadebayo: 3:02pm On Jun 23, 2010
@stagger

can I have your contact details?
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 5:45pm On Jun 23, 2010
just send an SMS to 08027601655. I wll tell you when to call.
Re: Is N500k Enough To Start Kerosene Supply Business? by Fhemmmy: 6:08pm On Jun 23, 2010
stagger:

just send an SMS to 08027601655. I wll tell you when to call.

I am amazed at your knowledge of the business.
For an older lady, i think the retailing would be the best idea, except one is sure that the driver will not send her to an early grace.
When is the best time to call you, ammo halla at you
Re: Is N500k Enough To Start Kerosene Supply Business? by kenlala: 9:53pm On Jun 23, 2010
this sound good,i think am interested,has anyone been able to speak to him?any result?
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 10:32am On Jun 24, 2010
My inquiries number (08027602655) is configured to receive SMS. Once I get your SMS, I will reply indicating when we can talk on phone. I had to do this to stop these crude oil people from pestering me with non-functional deals.

So just send an SMS and you will be replied. For those who want copies of the manual, I will send them out on Saturday morning.

pac2:

Is it profitable to buy, hire a truck and supply to ready retailer? will there be need for a permit from DRP?

They are all profitable. Just depends on how much cash you have at hand. For all cases, you need a DPR permit.

Fhemmmy:

I am amazed at your knowledge of the business.
For an older lady, i think the retailing would be the best idea, except one is sure that the driver will not send her to an early grace.
When is the best time to call you, ammo halla at you

The way to go for your mama, is to actually enter into a supply arrangement with a MAJOR MARKETER. That way,she pays them, they do all the loading and supply logistics. So she will not have to be going to the depot herself, and will not have to rely on having workers carrying her money to the depot looking for products.

But to be able to enter into this arrangement, you need capital for at least 11,000 litres. No compromise there! If you want, I can give you information on how to go about the process. You will surely need a DPR permit for this.
Re: Is N500k Enough To Start Kerosene Supply Business? by delampy(f): 11:01am On Jun 24, 2010
@ stagger,

I am sendng you right away. I have been getting some offline training too and I will be grateful foy your manual. My email addy is kay_lamp@yahoo.com.

The only area of concern is the DPR license. Do you need a a license to be a retailer? I can't seem to reconcile that with all these old women I se selling them all over the place. I also learnt these women/sellers usually form a cabal. Is it true?

Thx a lot!
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 11:20am On Jun 24, 2010
delampy:

@ stagger,

I am sendng you right away. I have been getting some offline training too and I will be grateful foy your manual. My email addy is kay_lamp@yahoo.com.

The only area of concern is the DPR license. Do you need a a license to be a retailer? I can't seem to reconcile that with all these old women I se selling them all over the place. I also learnt these women/sellers usually form a cabal. Is it true?

Thx a lot!

If you have a large facility, you will need to have a DPR permit. Because when there is scarcity, the police and DPR can carry out raids on facilities suspected of being used for bunkering or hoarding products. If you do not have a permit, you will have major problems.

My facility has been visited by the police and Task Force Petroleum Products Distribution in the past, but I had my permits visibly displayed and I was let go.

It is better to have it before you start. Do not take chances.
Re: Is N500k Enough To Start Kerosene Supply Business? by pac2: 1:48pm On Jun 24, 2010
@ stagger
They are all profitable. Just depends on how much cash you have at hand. For all cases, you need a DPR permit.


thank you
pls, can i get the Manuel (smartly@yahoo.com)?
Re: Is N500k Enough To Start Kerosene Supply Business? by Fhemmmy: 2:45pm On Jun 24, 2010
stagger:

My inquiries number (08027602655) is configured to receive SMS. Once I get your SMS, I will reply indicating when we can talk on phone. I had to do this to stop these crude oil people from pestering me with non-functional deals.

So just send an SMS and you will be replied. For those who want copies of the manual, I will send them out on Saturday morning.

They are all profitable. Just depends on how much cash you have at hand. For all cases, you need a DPR permit.

The way to go for your mama, is to actually enter into a supply arrangement with a MAJOR MARKETER. That way,she pays them, they do all the loading and supply logistics. So she will not have to be going to the depot herself, and will not have to rely on having workers carrying her money to the depot looking for products.

But to be able to enter into this arrangement, you need capital for at least 11,000 litres. No compromise there! If you want, I can give you information on how to go about the process. You will surely need a DPR permit for this.


Very interested in knowing more.
Please send me the details . . . . . Femmmy.moto@gmail.com
Re: Is N500k Enough To Start Kerosene Supply Business? by guru01(m): 8:51pm On Jun 24, 2010
For those who want copies of the manual, I will send them out on Saturday morning.
@stagger
This is my email id, affiliate.9ja@gmail.com
Please i need the manual.

What is the minimum capital for a retailer,
Thanks.
Re: Is N500k Enough To Start Kerosene Supply Business? by kenlala: 10:38pm On Jun 24, 2010
still interested in this,pls send me manual to (frankyds555@yahoo.com)
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 1:32pm On Jun 25, 2010
I will take time to reply everyone on Saturday morning. Thank you.
Re: Is N500k Enough To Start Kerosene Supply Business? by delampy(f): 4:14pm On Jun 25, 2010
@stagger,

we will be waiting.I've sent you two text messages to show you how seriously we value your contribution.

I will also be getting some offline training this weekend and will hopefully share with the forum next week.
Re: Is N500k Enough To Start Kerosene Supply Business? by Nobody: 1:06am On Jun 26, 2010
Pls can you help with the manual?anudads2008@yahoo.com
Re: Is N500k Enough To Start Kerosene Supply Business? by pac2: 10:19am On Jun 26, 2010
@stagger

pls, send me the manual to samadlila@yahoo.com
Re: Is N500k Enough To Start Kerosene Supply Business? by Nobody: 10:27am On Jun 26, 2010
delampy:

Hello NL,

Please help, all Oil & Gas/Business people. Kindly confirm if it is possible to start Kerosene supply business with N500,000. By supply business, I mean buying like 5000 litres from the depot and supply to wholesalers/large retailers. Is this possible?If it is, what is the possible margin and the process?
Please help!!!I am trying to choose between recharge card & Kerosene sales.

Thanks.

Can i chat with you?

1 Like

Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 2:48pm On Jun 26, 2010
Ok, all those who requested the manual should check their boxes.
Fhemmy, yours will take me some time so give me till evening of today. Thanks.
Re: Is N500k Enough To Start Kerosene Supply Business? by DrKitaun(m): 3:19pm On Jun 26, 2010
Stagger

wey my own ?
Re: Is N500k Enough To Start Kerosene Supply Business? by stagger: 5:04pm On Jun 26, 2010
Dr Kitaun:

Stagger

wey my own ?
Your email address?
Re: Is N500k Enough To Start Kerosene Supply Business? by kenlala: 6:13pm On Jun 26, 2010
stagger,thanks for the manual.i have ready it and i think its self explainatory.i will love to meet
you one on one so that we can discuss further.cheers

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