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LPG Gas Plant Startup Budget: How Much Can I Budget To Start Cooking Gas Refilling Business In Nigeria

LPG Gas Plant Startup Budget: How Much Can I Budget To Start Cooking Gas Refilling Business In Nigeria

READ MORE: How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024

This is the start of a new year, and most people would like to start a new line of business or add to their existing one. If you have been having intentions to start along the oil and gas path, such as the LPG cooking gas business, you want to start this gas business - but don't know how much can you budget for it. You need a right answer?

With shop, the cylinders, and with scale - you should budget something like N400k.

To start with this, do you need DPR registration and permits?

How much do I need to start with this?

In the various streets of Nigeria, you could see how much cooking gas business have gone in the past years. Nearly all corners, you can find one or two cooking gas refilling shops. Cooking gas have become the sort-to  fuel for cooking and heating, than the conventional charcoal and firewoods.

As an aspiring entrepreneur that you are – you are on a path to start your own LPG cooking gas business. As the sun sets on another day, questions arise, and among them, a common one echoes through your mind: "How much can I budget to start an LPG cooking gas business in Nigeria?"

For some individuals who had been in the business for long, it's not just about business; it's about the freedom that comes from being your own boss. 

As you sit down with that phone in your hand, I'll take you on a journey through the path of starting an LPG cooking gas business. It's not just numbers and calculations; it's a story of determination, fueled by the desire to make a mark in an industry that resonates with the very essence of Nigerian life.

The question of budgeting is met with a lot of thinking and planning. As i shares insights into the key components that make up the financial aspect of this venture. From securing quality gas cylinders to the regulatory part such as documents and licence, every step involves a line between aspirations and the practicalities of the business world.

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It's more than just an investment; it's about understanding the needs of the community. I am emphasizing the importance of connecting with customers on a personal level. In a country where the kitchen is the heart of the home, the LPG cooking gas business becomes a conduit for shared moments and cherished meals.

As more questions on budgeting unfolds, you start to see as I paint a vivid picture of the challenges faced – from sourcing reliable suppliers to building a trustworthy brand. Yet, each obstacle becomes a stepping stone, a testament to the resilience required to turn dreams into reality.

The budgeting process is not merely a numerical exercise; it's a strategic roadmap for your vision to materialize. It involves careful consideration of operational costs, marketing strategies, and, most importantly, the human touch that sets their business apart in a competitive landscape.

In the end, the budgeting question isn't just about figures on paper; it's about investing in a dream and, more importantly, in the lives of those who will find comfort in the flame of a well-tended gas stove.

Certainly, please note that these are rough estimates and actual prices can vary based on location, suppliers, and market conditions. 

1. Gas Cylinders: Prices can range from 80,000 Naira to 100,000 Naira or more, depending on size and material.

2. Regulatory Compliance: Costs for licenses and regulatory compliance may range from 1,000,000 Naira to 3,000,000 Naira, for LPG gas plant. Licence papers such as DPR.

3. Filling Station Equipment: Expenses for hoses, valves, and regulators might be around 50,000 Naira to 200,000 Naira.

4. Transportation Vehicles: Prices for a gas delivery truck can vary widely, starting from 2 million Naira and going up significantly based on size and specifications.

5. Storage Facility: Renting or constructing a storage facility could cost anywhere from 600,000 Naira to several million Naira.

6. Safety Equipment: Budget approximately 20,000 Naira to 50,000 Naira for safety gear.

7. Quality Control Instruments: Costs for instruments may range from 50,000 Naira to 200,000 Naira.

9. Marketing and Branding: Allocate a budget of at least 100,000 Naira to 200,000 Naira for initial marketing efforts.

10. Operational Costs: This can vary widely, but a monthly operational budget might start from 50,000 Naira and go up depending on the scale of operations.

Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. Link below 👇 👇

With the recent increase in dollar to naira exchange, prices of goods and commodities have skyrocketed significantly. If you know that you are on a limited budget, I did recommend you consider a retail reseller shop, or something like the 1.5tons complete gas skid, which cost about 3.5million. For retail reseller shop, you can run your gas refilling using motor pump. Less gas shortage, more profits. 

Below Are Prices For The Complete Setup Skid And Tank Sizes:

• 2.5tons complete gas skid: N5.5 million (Single nozzle Dispenser)

• 5tons complete gas skid: N16 million (double nozzle dispenser)

• 10tons complete gas skid: N22.5 million (Double Nozzle Dispenser)

Note: These prices are estimates. So, they can change, either to go up or to come down. You will need to reconfirm cooking gas tank prices upon making a purchase decision. The figures here are for planning purposes. Also note that there are cheaper options, and when you are ready to setup, you can consider Facebook marketplace. There you can find cheaper equipment and materials for setup. Here is one below:

* Facebook · LPG Nigeria

10K+ followers

LPG Nigeria

Please, note that the cost of setting up a cooking gas plant varies depending on the tank size and design. This is the most affordable plants cost.

Location, Land And Space

The minimum land requirement to setup a cooking gas plant is 1 plot of Land and 2 plots if setting up 10tons. However, it's better to stay on a safe side when dealing with DPR officials. The officially recommended size of land is 100 meters by 100 meters. Most plot of land are either 60 meters by 120 meters or 50 meters by 100 meters.

To decide on the best location to setup your cooking gas business, consider a highly populated residential areas. Areas closer to T-junctions, local marketplace, food vendors such as restaurants and bars.

That means locating your gas business in a place not too far from residential areas is ideal. Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Also, since it's a bulky product, considering the weight of cylinders, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas in their locality.

Remember, your ideal location should be an area with high traffic such as a busy road, street or street junction close to a market place. But avoid locations with high tension poles or school vicinity as this could pose a huge problem during licensing by officials from Department of Petroleum Resources and even fire service.

Gas Supply And Delivery

After setting up your cooking gas plant, the most important part of your operation is the logistics of gas supply. You need the services of a large cooking gas logistics company. One that has a combined supply and transportation network in the industry. 

Cooking gas is supplied using Bobtails and Bridger, in a refrigerated transport Vessel. A well strategically placed logistic company would be located throughout Nigeria and would have a traceable and routing satellite communication systems.

This will help deliver world class logistics services to meet the needs in a timely gas plant. There are different LPG gas depots in various parts of Nigeria, which you can order from, that can deliver 20MT tons of LPG gas. Here are popular depots and their locations:

To get daily report of LPG depot gas prices for 20MT tons, you can visit these websites below for up-to-date LPG gas 20MT depot prices:

1. LPG In Nigeria

LPG Depot Prices per 20MT for Today (and Charts)

2. NIG LP Gas

LPG (Cooking Gas) Depot Price Watch

3. Naija Lpg

Today's Lpg Pricing

READ MORE: How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024

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We provide news, information on all LPG related services, including construction, prices and repairs. Our goal and mission is to make LPG gas available and accessible to every household in Nigeria.

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