The oil and gas industry in Nigeria would for a very long time to come remain a money spinner for savvy investors who can spot the emerging and existing investment opportunity in the sector and take full advantage of it.
Though the sixth largest exporter of crude oil in the world, Nigeria remains one of the major importers of refined petroleum products in the world, owning to the fact that our refining capacity is greatly undermined by the challenges being faced by the refineries in the country and the general lack of investment in the sector in the country over the years.
Statistics have it that there are over six thousand {6,000} independent petroleum products marketers and six {6} major marketers of distributing and marketing petroleum products across the country. Nigeria currently consumes an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day and with population of over one hundred and forty million {140,000,000} people, growing at the rate of about 2.7% per annum with a estimated economic growth rate of 5.7% in the past five {5} years, the market for refined petroleum products in Nigeria, is established, growing and sustainable.
Dual purpose kerosene {DPK}, popularly known as kerosene in Nigeria, probably has the highest demand and per liter profit of the three {3} refined petroleum products, with an estimated 60% of the entire population of the country using the product for cooking and lighting.
With the addition of some chemicals, kerosene can be used as aviation fuel, which is much more expensive than kerosene and at such some marketers divert the product to the aviation industry leading to scarcity of the product.
If you are starting kerosene distribution and marketing business with an installed capacity of less than 10,000 liters, you are not required by law to have an operating license.
Basically, the business in two {2} levels namely
Operating a storage and sales facility
Purchase and trucking services
Operating a storage and sales facility involves the buying, storage and sales of the product to the retail market while providing purchase and trucking services involves the purchase and trucking of the product of the retailers. The recommended capacity of the delivery truck should range between 10,000 – 16,000 liters.
The profit potential for kerosene distribution and marketing in Nigeria is usually estimated per liter and the expected profit margin for kerosene supply is between N 10 – N 35 per liter.
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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for beginners and exporters already in the commodity export market.
Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.
You can order our detailed feasibility report on Kerosene distribution and retailing in Nigeria by clicking on the link below.
Report Title: KEROSENE (HHK) DISTRIBUTION AND RETAILING ( SURFACE TANKER) IN NIGERIA; THE FEASIBILITY REPORT.
Report Code: OilNG0100
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