Petroleum products are among the most valuable natural resources abundantly available in our country. Nigerians and people everywhere use petroleum products as a fuel in their automobiles, generating sets, industrial plants and for cooking purposes, thus making petroleum products an essential commodity that is needed for the daily operations of individual, industrial and national activities.
Nigeria being an oil producing nation however still relies on imported petroleum products for the servicing of the economy. Such petroleum products as Petrol (PMS), Diesel (AGO) and kerosene (DPK) are products utilized by almost everybody on daily basis at an average of 60 million litres daily usage. Due to increasing level of standard of living, more Nigerians are increasing the number of cars on the road, the need for constant power supply to aid uninterrupted production of goods and services and also for domestic use more Nigerians are increasing the demand for fuel in order to enjoy the usage of their generating sets and industrial plants.
This report highlights the financial viability of establishing a refined petroleum product supply business that seeks to source to the products from tank farms/ depot and supply same to local industries, telecommunication site, eateries, filling stations etc.
With a population of over one hundred and sixty five million { 165,000,000} 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 refined petroleum products in Nigeria, established ,growing and sustainable.
The nations demand for refined petroleum products currently stands at an estimated sixty million {80,000,000} liters for Premium Motor Spirit {PMS}, Dual Purpose Kerosene {DPK} and Automated Gas Oil {AGO} per day.
i. Petrol (Premium Motor Spirit) – 40,000,000 ltrs
ii. Diesel (Automotive Gas Oil) – 25, 000,000 -30, 000,000 ltrs
iii. Kerosene (Dual Purpose Kerosene) – 20, 000,000 ltrs
PMS: Premium Motor Spirit (Petrol)
Petrol is a complex mixture of hydrocarbon produced by mixing factions obtained from the distillation of crude oil with brand –specific additives to improve performance. Under normal conditions, it is a volatile liquid with a characteristic odour.
The product can be sourced from any of the tank farm/depot scattered across the country. Depot exists in Lagos, Warri, Port Harcourt and Calabar.
It is advisable that the investor sources the product from the point close to the point of discharge.
The growth and development of any community/nation/country is dependent on power. Self development sustenance and empowerment are all determined by power. A nation can only develop with power. However, the case is different in Nigeria as power is either epileptic or non-existent. This is what has caused many industries (which include: small, medium and large scale) to migrate to neighboring countries where they would be able to thrive well.
Hence the only solution is for companies to create their own source of energy production in order to keep in business. A lot of individuals have capitalized in this area and made so much money in this regards, making a good livelihood and Sustenance area for themselves
The return on investment on the trading of PMS ranges from 20% – 50% per transaction.
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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 refined petroleum products trading to local industries in Nigeria by clicking on the link below.
Report Title: HOW TO SECURE AND EXECUTE LOCAL PURCHASE ORDER {LPO} FOR THE SUPPLY OF REFINED PETROLEUM PRODUCTS.
Report Code: FORA/010/2012/060
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