How to Establish Petrol Station and Make Millions in Nigeria

Running petrol station business is very lucrative in Nigeria. Some factors like the Nigeria population which is over 180 million as at 2017 according to estimate, the epileptic power supply in the country left citizens with no options than depend on fuel/diesel to power their generators at home and in their offices.  Kerosene and gas are also essential commodities in the country as many homes use them to cook meal at home and for commercial purposes in restaurants etc. Read:5 Tips To Setup a Profitable Educational Learning Center

It is a business where sincerity and accuracy can take you to a great height. Many filling stations in Nigeria are known for fraud of accuracy. By this I mean under dispensing of products through manipulations of meters. Although there are few filling stations that are sincere with their metering like Oando, NNPC and a few other mega stations. These few sincere ones have more patronage than the others that are not.

Factors that determine your turn over rate include your location, sincerity and accuracy of meters. Location plays a great role in the level of sales. A petrol station established by the express way has the possibility of having a lot of patronage than the ones in a corner of a street. So it is imperative to take into consideration the importance of location influence on sales before you establish your stations.

If you have interest in this business, below are the guidelines on how you can obtain your permit from the regulatory body known as Department of Petroleum Resources (DPR) as stipulated in the act that established DPR.Read:How to make millions from mobile toilet business

Department of Petroleum Resources (DPR) Guidelines for Approval to Construct and Operate Petroleum Products Filling Station

Procedure and conditions for granting approval for the construction and operation of Petrol Station; these guidelines are in compliance with Petroleum (Amendment decree no. 37 of 1977 safety rules and regulations).

  1. SUITABILITY INSPECTION

The intending Marketer should submit an application to DPR for site suitability inspection. The inspection shall among others issues report on the following basic requirements:-

(i) Size of the proposed land site.

(ii) The site does not lie within pipeline or PHCN high tension cable Right Of

Way (ROW).

(iii) The distance from the edge of the road to the nearest pump will not be less than 15 meters.

(iv) Total number of petrol stations within 2km stretch of the site on both sides of the road will not be more than four including the one under consideration.

(v) The distance between an existing station and the proposed one will not be less than 400 (four hundred) meters.

(vi) The drainage from the site will not go into a stream or river.

(vii) In some instances where site is along Federal Highway, a letter of consent from the Federal Highway is required.

(viii) DPR guided/supervised EIA study of the site by DPR accredited consultant.

  1. APPROVAL TO CONSTRUCT

(i) If suitability report on the above preliminary issues is favorable, the under listed documents shall be required for submission to DPR office for review without any obligation on DPR to grant ATC if any negative change to the suitability situation of the site occurs before the grant.

DOCUMENTS REQUIRED

(a) Application letter addressed to the Operations Controller of the DPR Zonal/Field office nearest to where the location of the proposed station site.

(b) Two (2) photocopies of Certificate of Incorporation.

(c) Two (2) photocopies of Memorandum and Article of Association.

(d) Two (2) photocopies of Current tax clearance.

(e) Original and photocopy of Police report.

(f) Original and photocopy of Fire report and Certificate.

(g) Two (2) original copies of Approved building plan.

(h) Two (2) photocopies of letter from Land & Survey.

(i) Two (2) photocopies of Deed of conveyance.

(j) Environmental Impact Assessment (EIA) report for underground storage tank capacities greater than 270,000 litres.

(ii) After “Approval to construct” is granted, it is mandatory that some meaningful development be made on site within three (3) months from the date approval was granted. The approval expires if no development commences within the time frame.

(iii) Sign Post should be installed on site immediately after approval to construct is granted. The sign post should indicate the name of the company and the reference number of the approval letter.

(iv) Companies involved in building of Petrol Stations, construction and fabrication of U/G storage tanks and canopy shall have DPR Permit to operate as Oil Industry Service Company.

  1. STORAGE AND LICENCE TO OPERATE A PETROL STATION

After ATC and the construction of the station during which it is mandatory to invite officer(s) of DPR to witness the burial and Pressure/Leak test of the U/G tanks, an application for storage and sales licence to operate the station must be obtained.

The following requirements must be met.

REQUIREMENTS FOR ISSUANCE OF STORAGE AND SALES LICENCE

The following conditions must be met before storage and sales licence can be granted.

(i) A minimum of three (3) underground storage tanks (one each for PMS,

DPK, and AGO.)

(ii) A minimum of three (3) dispensing pumps(one each for PMS,DPK and

AGO)

(iii) Office building: Two (2) offices, sales room, toilet, lube bay/store (Optional).

(iv) Well concreted forecourt “IN/OUT” drive way inclusive.

(v) Wall fence demarcating the station (minimum height of 1.5m high).

(vi) Good drainage Network.

(vii) Safety facilities (Fire Extinguishers, Sand Buckets, strategic display of

“NO SMOKING” warning signs.

(viii) Station Sign post/logo of company/outlet.

(ix) Standard canopy over PMS pumps (mandatory) with company name and

logo boldly written.

(x) Standby Generator.

(xi) Accessible Potable water source.

(xii) Standard (51” x 30”) price bill board with changeable price mechanism

DOCUMENTS REQUIRED

(a) Products U/G tanks pressure test report/Certificate and Leak detection test (original printout).

(b) Photographs of the station 8” X 10” (not computer generated photographs (snapped from different angles such that in/out driveways pumps and other facilities are clearly shown).

(c) Current Fire certificate.

(d) Application form with Bank draft attached (amount depends on storage capacity).

(e) Evidence of trained attendants.

 

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