Popularly known in Nigeria as, Automated Gas Oil {AGO}, Diesel is one of the products in the fractional distillation of crude oil. Diesel is used to power heavy duty equipment and plays an important role in the transportation and distribution of other refined petroleum products.
There is no gain saying that the generation and distribution of electricity in Nigeria over two decades as been erratic and as a short term {or is it long term} palliative measures to the problem, businesses/individual have resorted to the use of diesel to power their heavy equipments and plants to generate the much needed electricity. Some of the sectors where diesel is used in Nigeria include manufacturing, shipping, banks, construction sites, hotels etc.
With a population of over one hundred and forty million {140,000,000} people ,growing at the average rate of 2.7% per annum and an economic growth rate of about 5.7 % in the past five years, the market for diesel distribution and marketing in Nigeria, established ,growing and sustainable.
In order to meet demands for their product and services , prospective diesel buyers are in constant need of the product to continue production because of the epileptic supply of electricity in the country and the entrepreneur is required to canvass for local purchase order {LPO} from prospective buyers and provided his/her price is relatively cheaper than other competitors, he would secure the supply contract.
One very important feature of the diesel distribution and marketing market in Nigeria is the price volatility. The price an hour ago might not be the present going price and at such before giving your final price, the entrepreneur should re-confirm the price.
To aid the smooth and efficient delivery of the product and also to mitigate the price volatility challenge, it is advisable the entrepreneur has his/her won delivery truck with a recommended capacity ranging from 10,000- 16,000 liters.
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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.
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 the supply and distribution of automated gas oil {AGO} in Nigeria by clicking on the link below.
Report Title: DIESEL SUPPLY AND DISTRIBUTION IN NIGERIA, THE FEASIBILITY REPORT.
Report Code: FORA/2014/AGOSUPPLY/44455367
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