These days, you can find gas plants at some petrol stations, or near popular depots, sites or routes. Usually the smaller independent petrol stations. Many now understands the vest Investment opportunities and ROI in this sub-sector of the oil and gas industry. Competitions is high.
If you owned a gas plant facility, you will need proper business planning to scale successfully through competitors. You can use price and supply action. Mostly, the selling price on your LPG depends greatly on your supplier. If your supplier cost less both on LPG and logistics, you can greatly profit from sales, even if your price per kg is less expensive than the national regulatory price/market price.
Also Read: How Logistics Affects Prices Of LPG Gas For Various LPG Suppliers In States Across Nigeria
Secondly, see the LPG business just as forex trading. You buy when the price is low. For instance, if you order for a supply of LPG gas in the month of March at a depot price of #12,000,000 per 20MT, if by end of March recession hits or scarcity, you now have an advantage to set your price per kg as you wish. You can still sell at the market price or less and still make profit.
War and social unrest can adversely affect suppliers and drive price upward. Natural disasters like earthquakes, floods and fires also may impact LPG price.
Always source LPG suppliers that can offer you discount on orders. Also, it is best to fill up your gas plant depot tank. If you own a 5,000 litre tank, instead of ordering 2,500 litre when LPG price is low, why don't you just fill up that depot tank to the fullest and take advantage of the low price. Just also in case of scarcity or major news break in the oil and gas sector. Before making that order, get your price information right. Every LPG depots and distributors have different price for LPG and logistics. Do thorough fundamental analysis to know the local market price, the ups and downs of pricing and so on.