GloriousGbola:


It is everywhere. Also in lagos. Poor regulation by dpr means you can quickly hammer, especially if you are an independent. Build a station at a fraction of the cost of the majors (by ignoring all safety standards) rig your pumps to 1 litre and you are good to go.

GloriousGbola:


It is everywhere. Also in lagos. Poor regulation by dpr means you can quickly hammer, especially if you are an independent. Build a station at a fraction of the cost of the majors (by ignoring all safety standards) rig your pumps to 1 litre and you are good to go.

BlueRayDick:


But it’s hypocritical on the path of Buhari sha cos he’s a beneficiary of the system he’s now going against . I was in the north during the 2015 elections and I can confirm both APC and PDP induced people with money during that election that brought him to power . I wonder where he thought his party men got all the cash that was used to secure his victory sha .

Roland17:


Nigerian politicians are the greediest bunch ever assembled. They have no restraint and are insatiable when it comes to how much they want to corner for themselves and generations unborn.

izzou:
Can someone please explain to me how Petrol station business is profitable?

Unless you are a major marketer, i still believe most are just used to hide the illegal means of wealth.

raumdeuter:


Though I don't have any business interest in Nigeria in the near term but mentioning this picks my interest

Like how much does it take to open a fuel station in Lagos. Not in Lekki and also not in an undeveloped area say like Ikeja or Surulere

Has anyone done the feasibility study the projected investment, the business risks and the projected returns

If there is any thread like that whether on NL or Twitter I will like to know cos I doubt any govt will remove subsidy which will always make money for station owners

izzou:
Can someone please explain to me how Petrol station business is profitable?

Unless you are a major marketer, i still believe most are just used to hide the illegal means of wealth.

seankafor:
but how are these people able to bypass the advantages of decentralization in this petrol business

I thought competition is good for business.. those different brands of filling stations supposed to be a good thing in the sense that it will bring competition amongst them just like we have in other sectors like telecom, bank, etc

I know most of these filling stations have one big WhatsApp group and no one dares go against their monopolistic rule.. if it's that, it's gang and herd mentality..

We don't have scarcity in gas, Diesel, kerosene.. how the hell are we having scarcity in Petrol?

GloriousGbola:


Take a 20 litre measuring can. This is for pump calibration. In an ideal world you dispense what reads as 20 litres from pump to measuring can, it is 20 litres you get.

However because of losses dpr has an allowance per litre. I have forgotten the figure but it is not that high. I think 0.5 allowance for 20 litres. But say you adjust the pump so it reads 21 litres when you pump 20 litres. That means for every 20 litres you pump you are making 184n extra. Now imagine your station is selling 500k to 1m litres a month.

This is very big money and people can kill for it.

In a fully structured society petrol is a loss leader which is why the real money from gas stations abroad is retail.

You can make money on margins but you have to be a mega station in the million litre /month band.

You also have to understand the business or your attendants and station managers will rob you blind.

Especially the so called innocent pastor looking ones.

Retail price per litre less ex depot price per litre less losses, less operating costs, less monthly settlements

GloriousGbola:


Diesel, gas and kerosene are fully deregulated. So anyone can bring them in. Petrol is subsidized so nnpc is bringing it in. And it is being diverted to neighbouring countries which is why we have scarcity.

This is how it used to work. You have a station in lagos. You pay the depot for your allocation, say 3m. The truck is dispatched. You get a call. We are sending the truck elsewhere. Your money after sales should be 4m.take 5m. The truck is now moved somewhere where the fuel will sell for 6 or 7m. You make your money, but the supply chain is fked up. That is the root of the pms scarcity. All this nonsense raiding stations for selling in Jerry cans is aboki eye service. They know the deal.

izzou:


500k to 1 million litres per month?

That is....having 15 tanker trucks offloading petrol every month...31 days?

Pre scarcity, is there any One-man fuelling station that can do this?

raumdeuter:


Maybe this should be my actual question

How profitable is petrol station business and how do they make money

Itsrm:


Or they pay the 6m and sell to us at 350/l

Interesting

GloriousGbola:


If your station is situated in the right space - yes.

izzou:


I needed to ask this

I have heard from persons that the profit margin for every litre of diesel hovers around 20 naira

So person go use about 28 million buy one truck (33,000 litres), then gain 660,000?

Hmmmmm

izzou:


I needed to ask this

I have heard from persons that the profit margin for every litre of diesel hovers around 20 naira

So person go use about 28 million buy one truck (33,000 litres), then gain 660,000?

Hmmmmm

Itsrm:


They may be lying. Most of them by bunkered Diesel at a cheaper rate and mix with the original to make more profit

izzou:


Not everybody is on a right space naa

I visit my mum at Badagry, and there's one near her bus stop. I don't think those ones can do 2 trucks every month, but they are in business.

Imagine spending hundreds of millions to get less than a million (net) every month.

The thing be like fronts for other illegal business

izzou:


You could be right, my brother

But with the way these stuffs are springing here and there, i doubt the magnanimity of its profits

It is just like shopping malls...Many are just to hide shady deals, but people see them and say it is very profitable

Segedinho:
Here for Benin
10ltrs goes for 10k

Donjazet2:


The worst part is that the person complaining about buhari bitterly in that post is still supporting the person and the party that sold Buhari to Nigerians.

No be juju be that? 😂😂😂

akwesenana:
Then ringroad to agip go be around 1500.

Itsrm:


And be paying charges abi? Most of her customers will buy below 1000 naira. How much is she earning from the groundnut

Maybe she will add the charges to the cost of the groundnut which will beg another question. Why will people buy from her and not others who sell cheaper?

I also once tried getting a POS machine for a personal business and there was a challenge I couldn't overcome. Unfortunately I can't remember what the challenge was.

BlueRayDick:


Baba they didn’t redesign 100 naira , 50 naira , 20 naira and 10 naira . A petty trader that sells a commodity lesser than 200 naira shouldn’t be bothered about this redesign thingy .

Personally I believe people are over-amplifying the whole issue sef . I bought something worth 600 this evening with a new 1000 naira notes and the seller gave me 4 100 naira notes as change. She didn’t have problem with me since I paid with new notes and I didn’t have problem with her since she gave me change in 100 naira denomination which is not affected by the redesign .

izzou:


You could be right, my brother

But with the way these stuffs are springing here and there, i doubt the magnanimity of its profits

It is just like shopping malls...Many are just to hide shady deals, but people see them and say it is very profitable

Segedinho:

Na around there be d 1k per litre for black market so


But mehn dey plan tomorrow Waka.

TrebleChamp:
Sanwo-Olu withdrew from the Lagos Governorship debate, sighting foolish excuse of not wanting his supporters to clash with Jandor supporters. I was wondering why he would choose to attend a debate, when his principal is running away from his own Presidential debate. E be like na Gbadebo i go vote for las las....

izzou:


Do you think Sanwo-Olu is hiding from a debate?

Theflint1:
He is actually, whether he's refusing to attend one because it'd give publicity to his contestants or because he believes the LP and PDP guys might floor him in a debate. I think it's more the former than the latter though.

"They may be lying. Most of them buy bunkered Diesel at a cheaper rate and mix with the original to make more profit"