In some areas and communities in Nigeria, the local LPG retail reseller shops is the only way cylinder bottles can be refuelled. On rare occasion, black market are even allowed in these parts of the country. You hardly find gas stations that offers refilling of cylinder bottles, if not, what you will only find are reseller shops.
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A mini gas skid plant is the best available options to gas stations, but setting it up can be very expensive, and capital to construct one, can be far more than expected. Manual refilling, tank-to-tank, is now popular among locals and various rural areas. LPG reseller retail shops are easy to operate, only if you guarantee to follow and comply with the regulations and standards referred by the relevant regulations. LPG resellers must also comply rules and check any specific directives covering its application. Failure to comply with the instructions provided will lead to automatic forfeiture of your business and you may get arrested by the country regulatory agency.
First, to start a LPG retail reseller shop, you do need a large space, far from residential buildings. Some laws in some states in Nigeria, do not allow gas shops to be built closer to residential buildings. So, do a proper search before leasing or outright purchase of land space. After sorting out the space issue, make sure where you've obtained is properly tiled. A tiled floor is great for gas cylinder surroundings, because it helps cylinder bottles cool off during high temperature. So by this, gas cylinder bottles can always be in a stable room temperature condition.
LPG resellers use the tank-to-tank method for refilling gas cylinders. So, you will need almost four to six 50 kg cylinder tanks in your shops. Among the gas cylinder bottles, you should also have the 25 kg gas bottles for emergency refilling. Just in case the other 50 kg cylinder tanks get exhausted, you can easily refill the 25 kg at nearby gas plant, to service the available gas cylinders. You don't want to keep your customers waiting.
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As a reseller, you need to have all the right filling nozzles and adapters to fit all cylinder valves. Replace adapter and nozzle as recommended by the relevant regulations. Make sure that the inlet and the outlet of the cylinder valve are correct and suitable for the cylinder and the application. Some gas cylinder bottle valve won't suit some adapter. Most common adapters and valves are available for the 50 kg cylinder tanks, for refilling at gas plants.
As a reseller, you should consider offering home service delivery to your customers. Most people prefer Home delivery, because some cylinder bottles becomes more heavier when fully filled. You can employ a delivery person for this purpose.
Some local LPG resellers have problems with manual refilling, as most times during refills, compressed air is mixed up with LPG gas. This can cause disagreement between you and the customers, because compressed air is the same thing as filling nothing in to the gas bottle. This is why it is a good idea to make use of a transparent hose pipe for the tank-to-tank refills. This allows you to see through the hose pipe. You know when the flow of gas moving or stopped during operation.
To get the correct operation of the flow limiting gas supply, the tank-to-tank hose pipe should be 1.5m length at maximum.
Purging the air - inside of the cylinder must be eliminated of air. It should have some free expansion area for enabling gas inside of the cylinder. Do not over-purge the air. You could mistakenly release LPG gas unexpectedly. For example, let say you are refueling in a 1 kg worth of LPG, and you purge air at 0.67 (scale reading). If you fix back the following nozzle back again, you will discover decrease in scale reading, from 0.67 to maybe 0.60. This is, 0.7 of LPG worth is loss. So, purge air with sense. Thanks
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!👇 👇
The aim of business is to make profit, but most times, LPG resellers are always at the receiving end. LPG depot price will determine your asking price. It is recommended you look for supplies, wholesalers, LPG depot that can offer cheap and less price for LPG gas.
The best way to prevent loss for LPG resellers instead of cheating on customers to recover losses, is to use an accurate weighing scale. A fish scale well do the magic. I won't recommend the digital scale for retail resellers. The digital scale is very honest and trustworthy. You will just be shooting yourself on the foot iaf you go for a digital scale for LPG reselling. But if you decide to use a digital scale, make sure it is properly placed on a plain level surface, and not rested on any object or wall. If you switch on the digital scale and see a strange (-) numbers, apart from Zero (0). Reset the scale. It could just be that the scale is resting on some object. Prevent your body parts away from the scale.
To refilling a gas cylinder bottles, first of all, inserted the filling gun into the the cylinder valve before you place on the digital scale. Do not place the cylinder bottle and then insert the filling gun. NO!! This is bad idea, and it may later affect your profits. To prevent loss, fix your nozzle gun first into the cylinder valve, then switch on the digital scale. Make sure it shows Zero (0) on the dashboard screen. Place the cylinder bottle with the attached filling nozzle, both together on the digital scale. Press the TARE button, then you can now starting refilling. Easy and simple process.
Other activity that lead to losses for LPG resellers is that they are fond of adding weight of a cylinder bottle, together with the kg the customer wish to refill. Instead of just using the TARE (empty weight) on the digital scale. They prefer this, and I don't understand why. For example, assuming a customer bought in a 6 kg cylinder size bottle for refilling a 3 kg LPG worth, most resellers just add 6 kg (cylinder size) plus 3 kg (purchased LPG) together. They then place the cylinder bottle on the digital scale, insert the nozzle gun.
6 + 3 => 9
So, if they weigh a 6 kg cylinder with the nozzle gun and get maybe a 8.5 figure. The total weight we'll be added to the purchased kg. Until the scale reading reaches the added valve with the 3 kg LPG worth. LPG resellers well stop refilling when the scale reading reaches 11.5. This only lead to losses.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!👇 👇
Do not add figures together, instead, place on the digital scale and TARE the total weight.
Some times, when refilling a gas cylinder bottle, gas flow will stop during the process. This is caused by pressure in the gas cylinder. Purge the air inside. This allows for expansion.
FAQS
1. What do I need to open a profitable cooking gas retailer shop?
- You need to have a location for your shop, enough money to start, and knowledge about gas safety.
2. Where should I set up my shop?
- Choose a location with good visibility and accessibility, preferably in a busy area where people need cooking gas.
3. What equipment do I need?
- You'll need gas cylinders, refilling kits , safety equipment like fire extinguishers, and a scale to measure gas.
4. How do I get started?
- Register your business with the appropriate authorities, obtain necessary permits and licenses, and set up contracts with gas suppliers.
5. How can I make my shop profitable?
- Offer competitive prices, provide good customer service, and consider additional services like gas delivery or selling accessories.
6. How do I keep up to safety?
- Follow all safety regulations, regularly check equipment for faults, and train staff on handling gas safely.
7. What should I do if I need help?
- Seek advice from experienced gas retailers, join industry associations, and attend training sessions on gas refilling, safety and business management.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!👇 👇
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LPG Business Plan