READ MORE: How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024
Remember, 2025 will be 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 you need to budget for it. You need the right answer?
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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In some areas and communities in Nigeria, the local LPG retail reseller shops is the only way cylinder bottles can be refuelled. On most occasion, you will have to walk a long distance to get your gas cylinders refilled, which can cost extra transportation money for logistic - to and fro. You hardly find petrol station that offers refilling of cylinder bottles, if not, what you will only find are reseller shops.
With shop, the cylinders, and with scale - you should budget something like N400k - to 800k for a standard retail reseller shop.
READ MORE: 3 Challenges: The Survival Of Cooking Gas Retailers In Nigeria
READ MORE: How To Open And Start A Profitable Cooking Gas Retailer Shop In Nigeria
To start with this, do you need DPR registration and permits?
TO KNOW HOW YOU CAN EARN MONEY FROM LPG GAS BUSINESS IN NIGERIA - CONTINUE READING.......
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.
"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 is about determination and 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 share insights into the key components that make up the financial aspect of this venture. From securing quality LPG gas equipments to the regulatory part such as documents and licence, every step involves a line between patience and the practicalities of the business world.
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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It's more than just an investment; it's about understanding the needs of the community. I am talking about the importance of connecting with customers on a business level. In a country where the kitchen is the heart of the home, the LPG cooking gas business become needed. LPG is gaining popularity as a safer, cleaner, and more efficient energy source. As Nigeria shift towards LPG (Liquefied Petroleum Gas) is a growing trend, given the government push for cleaner energy solutions and reducing reliance on kerosene and firewood.
As more questions on budgeting becomes clearer, you start to see as I paint a real 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 involves strategic planning for your vision to materialize. It involves careful consideration of operational costs, marketing strategies, and, most importantly, the right knowledge that will sets your business apart in a competitive landscape.
In the end, the budgeting question isn't just about figures on paper, it's about investing in the subsector of the Nigeria oil and gas industry and, more importantly, as a source of revenue.
Certainly, please note that these are rough estimates and actual prices can vary based on location, suppliers, and market conditions.
Please note, most of what is listed below are not compulsory or necessary. I did always recommend you go with what is within your budget, while however, still putting quality, regulatory and safety in mind. You can start small, and grow from there.
1. Gas Cylinders: Prices can range from 80,000 Naira to 100,000 Naira or more, depending on size, types and material. You can consider second hand if it is okay. Or buy a brand new gas cylinder for its safety.
READ MORE: Is It Safe To Buy A Second-hand Gas Cylinder?
READ MORE: 4 Safety Tips For Inspecting Fairly Used LPG Gas Cylinders
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. Fire service approval from the fire department in your locality.
READ MORE: Do I Need DPR Licence Papers Before Operating An Lpg Gas Plant In Nigeria?
3. Refilling Equipment: Expenses for hoses, motor pump, fire extinguishers (CO2 or powder based form, water extinguishers are out of thoughts), fire sand buckets, safety signs, digital scale, adapters and so on might be around 200,000 Naira to million Naira.
4. Logistics: Prices for a gas delivery can vary widely, starting from three hundred thousand Naira and going up significantly based on distance, contract, size and specifications.
READ MORE: Logistics Challenge On LPG Pricing On LPG For Various Gas Depots In Nigeria
READ MORE: Supplying LPG Gas To Your Gas Plants In Nigeria - How To Do It The Right Way
5. Storage Facility: Renting or plot of land could cost anywhere from 600,000 Naira to several million Naira.
6. Safety Equipment: Budget approximately 50,000 Naira to 200,000 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. Which is why it is always good to get a brand new constructed Lpg gas equipment and materials. Buying from third parties can be somehow risky, in terms of repairs and maintenance. Maintenance and repair for lpg can be expensive. Building from scratch is also a good idea.
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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With the recent increase in dollar to naira exchange, increase price 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 to 4.8 million naira, depending on the materials, maybe foreign or local fabricated. For retail reseller shop, you can run your gas refilling using motor pump, including of the usual conventional manual refilling. Less gas shortage, more profits.
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Below Are Prices For The Complete Setup Skid And Tank Sizes:
• 2.5tons complete gas skid: N8.5 million (Single nozzle Dispenser), you can also get the one for double nozzle dispenser (price is different)
• 5tons complete gas skid: N25 - 30 million (double nozzle dispenser - recommended)
• 10tons complete gas skid: N40.5 million (Double Nozzle Dispenser - recommended).
** 1.5tons complete setup skid can be only single nozzle dispenser. It works fine.
As of 2023, these prices may already changed due to economy or forex
Note: These prices are estimates. So, they can change, either to go up or down. You will need to reconfirm LPG gas tank prices upon making a purchase decision. The figures here are for planning purposes.
LPG Storage Tank and Dispenser (Types, Sizes and Price)
• Gas Storage Tanks
An LPG gas skid in Nigeria is a complete setup used for storing and selling cooking gas (LPG). It includes:1. Storage Tank: A tank (1.5 to 10 tons) for keeping the gas.
2. Dispenser: A machine that fills gas into cylinders.
3. Pump and Pipes: For moving the gas from the tank to the dispenser.
4. Safety Equipment: Includes valves, fire extinguishers, and gas detectors for protection.
5. Control Panel: Monitors and controls the system.
6. Skid Platform: A ready-made base that holds everything together for easy transport and setup.This setup is commonly used in Nigeria for businesses selling cooking gas.
LPG Storage Tank Options For Complete Setup Skid
• Double Tank Options
2.5 Tons Complete Setup Skid
Double 3.5 Tons Complete Setup Skid
• Single Tank Options
Single 1.5 Tons Complete Setup Skid (Brand/Foreign Used)
Single 2.5 Tons Complete Setup Skid (Brand New/Foreign Used)
Single 3.5 Tons Complete Setup Skid (Brand/Foreign Used)
Single 5 Tons Complete Setup Skid (Brand New/Foreign Used)
Single 10 Tons Complete Setup Skid (Brand New/Foreign Used)
- Best For: Stations in areas with very high demand or large-scale businesses.
LPG Gas Dispenser Types
Locally Assembled (Single Meter, Double Nozzle)
Locally Assembled (Double Meter, Double Nozzle)
Foreign (Double Meter, Double Nozzle)
Foreign (Single Meter, Double Nozzle)
Foreign (Cleantech) Dispenser
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
https://www.facebook.com/groups/442773610058566/
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. OUR COMPREHENSIVE EBOOK GIVES YOU WHAT YOU NEED TO LOOK OUT FOR, INCLUDING HOW TO GET FROM THIRD PARTY RESELLERS, SOURCING BRAND NEW, BUILDING FROM SCRATCH, including local or foreign Lpg gas equipment, material prices - and how to choose, thereby making an informed decisions.
GET YOUR OWN COPY 👇https://selar.co/87nd
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.
READ MORE: Turn Location into Profit: How Location Affects LPG Cooking Gas Business
READ MORE: How To Get Land Permit For LPG Gas Plant Construction In Nigeria
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.
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!!!
👇 👇
LPG 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 bobtail truck and Bridger, in a refrigerated transport Vessel. A well strategically placed logistic company are located throughout Nigeria and they usually have a traceable and routing satellite communication systems.
This will help in the deliver of fast 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. NIG LP Gas
LPG (Cooking Gas) Depot Price Watch
https://www.niglpgas.com/DepotPriceWatch.aspx