How To start Petroleum Merchandise Marketing In Nigeria

Petroleum products advertising in Nigeria is among the business that guarantees enormous revenue taking inside an affordable period of time from setup. This text comprises practical guides and instructions on learn how to go about the entire strategy of setting up your petroleum merchandise advertising business in Nigeria.

The first step to be taken by the possible investor is registration of restricted legal responsibility firm with Corporate Affairs Fee (C.A.C), Abuja. The investor ought to contact a competent lawyer to ensure that the company is duly registered.

It should be noted here that if touts are allowed to carryout the registration, one may fall victim of faux registration which can affect the corporate transactions in future especially when opening account with financial institution. As a result of, bank will definitely verify the real status of the company with C.A.C (corporate affair Commission on). A minimum share capital of N500,000 should be detailed enough to include the primary goal of the corporate which on this regard is petroleum product marketing.

Land Acquisition – That is one other vital aspect of the business. The investor ought to look for a landed property of not less than two plots, in business space and nicely situated and accessible. I like to recommend that the land should be along the excessive approach or any busy/heavy traffic route.

Survey and Building Plan – A reliable surveyor must be used for this exercise with the intention to keep away from mistake that could possibly be costly to appropriate. Additionally he could help for the constructing plan through the use of certified architect for the architectural design of the filling station. At the ultimate stage of this train approve building plan is expected (given). Three set of approve plans exhibiting the constructing present or proposed on the site and the relation of the positioning of the roadways to the adjoining property. Soil test and permission to construct filling station by DPR.

Original Fire Certificate – This has to be signed by the chief federal/state fire officer or by an officer authorized to take action. That the association proposed for the filling station fire prevention is satisfactory.

A letter of approval – You get this from the city planning authority of the realm you need to construction the filling station on the proposed site. This is very important, else, your development work will probably be suspended halfway.

Police Report – an original certificate signed by a station police commissioner or a superior police officer answerable for police motor site visitors division that the location and layout of the proposed site will not create pointless traffic hazard.

Tax clearance certificate – You could get this for the proceeding three years. Since the corporate has simply been registered, one – year tax clearance could be accepted. The above paperwork are submitted beneath the company’s letter headed paper to the division of petroleum resources (DPR) for permission to construct or build a filling station.

Minimum Required Services

Along with The Storage And Dispensing Amenities at Petrol Station

Filling Station Constructing – The constructing in any filling station is determined by the capital available to the investor. At least this could consist sales room, workplace, retailer s and rest room.

Fore Court docket – This essential side of station development that the concrete ground of the station. This accommodates distinct IN/OUT.

Certain Walls – This includes fencing of the station.The sure walls of minimum height of 1:2 meters-demarcating the petrol station from the adjoining properties.

Satisfactory Draining System – These needs to be proper drainage system to prevent flooding. This is for easier movement of car in and out of the station

Water & Electricity – These are also important utility that is required in any filling station. Nevertheless, because of unreliability of PHCN in this country as of now, most filling stations have a stand by generator to compliment the service of PHCN.

Security Devices – In any filling station, there ought to be potable hearth extinguishers, service periodically at the least one on every pump island and one every at lubricating bay workplace and generator house.

No Smoking Indicators – Conspicuously displayed on the station’s premises. This info is essential to each operator of the stations and the shopper (motorists). This is to avoid hearth catastrophe because of extremely inflammable petroleum products being bought in the station.

Dry Sand Buckets – That is one other security measure to keep away from hearth accident in the station. At least one needs to be each beside of the pump islands.

First Aid Box (Well Stocked) – A minimum of there must be provision to take care of main accidents to the staff before the assistance of well being employees are required. The first help field should include; iodine, cotton wool, plasters, scissors, Violette paint and many others.

Refuse Containers – All around the premises, there must be refuse containers that will enable the staff on the station to dispose of soiled rags, empty oil cans and so forth.

Skilled Petrol Station Attendants – This could possibly be completed in several ways. Coaching consultants would train the workers. They could possibly be despatched for training attachment in any present and practical filling station in the realm. Right here, advertising and marketing strategies of petroleum products can be taught. Ways of dealing or regarding customers and handling of cash are additionally essential side that training of attendants is inevitable. They should also be taught on good house maintaining of your entire petrol station premises.

Particulars Of The Procedures Of Obtaining DPR Storage License

When the filling station has been accomplished, below common inspection by the division of petroleum assets (DPR). The marketer can then apply for DPR storage license by submitting the following documents.

Three set of authorized plans, an original fireplace certificate signed by state fire service officer, a letter of approval from the Town planing Authority, survey plan, An unique certificate signed by a state police commissioner or superior police, Evidence that the company is dully registered with C.A.C, Tax clearance certificate for the proceeding three years, certificate/memorandum and Article of Association of the company; Also lead proof test of the storage tanks.

SEE Additionally: All You need to Know about NNPC – Nigerian Nationwide Petroleum Corporation

All the above documents with the photograph of the station are submitted beneath company’s letter headed paper to the Division of petroleum sources (DPR) for storage license.

Paperwork Required For Bulk Purchase Agreements

As soon as storage license is issued, the following stage is to apply for lifting proper and bulk purchased from petroleum pipeline marketing firm (PPMC). The following documents are required for lifting proper and bulk purchase agreement.

1. Storage and sale license of the filling station (from DPR) (1)
2. Certificate of incorporation of the corporate
3. Tax clearance certificate memorandum and Article of Association
four. Certificate of occupancy or customary Rights of occupancy of the land the place the petrol station is constructed (2)
5. Letter of introduction from the financial institution. (3)
6. Enlarge photograph of the station
7. Verification Report from PPMC Area workplace on the petrol station
eight. Pictures and particulars of truck. (4) Bearing the brand and title the company.
9. petroleum refinery plant Hearth Report
10. Police report
eleven. Authorised building plan
12. Marketer’s kind
thirteen. Marketer letter headed paper

With all the above paperwork the marketer is qualified for bulk purchase and lifting right from PPMC. A marketer who has the foresight can simply spread his operations throughout all of the depots in Nigeria by opening extra outlets in other depots. In different retailers, it is just storage license from PDR that is required to start operation.

Depot Operations

Assuming storage license has been obtained from DPR, lifting right and bulk buy agreement from PPMC. Now allocation to lift the next merchandise at NNPC Depots – DPK, PMS, Ago even LPFO can be given. This however is dependent upon nearest depot to your filling station Some of NNPC LOADING

Lists Of A few of the Depots In Nigeria

1. Satellite tv for pc Depot Ejigbo Fluid Catalytic Cracking (Lagos)
2. Mosimi Depot Shagamu
three. Ibadan Depot Ibadan
four. Ore Depot Ore Ondo Gate
5. Ilorin Depot Ilorin
6. Benin Depot Benin City
7. Warri Depot Warri (Refineries)
8.Port Harcourt Depot P.H.C (refineries)
9. Owerri Depot Owerri
10. Suleja Depot Suleja (Abuja)
11. Minna Depot Minna
12. Kaduna Depot Kaduna
13. Kano Depot Kano
14. Markudi Depot Markudi
15. Maduguri Depot Maduguri
sixteen. Eungu Depot Enugu
17. Gombe Depot Gombe

Furthermore, if can not meet all you need quantity you’ll be able to promote in your outlets, you may purchase yours from non-public depots in Apapa area of Lagos state. Such personal depots are:

1. Ascorn Depot
2. Obat Depot
3. Ibeto Depot
4. Honeywell Depot
5. Zenon Depot
6. NIPCO Depot
7. MRS Depot and so on.

The magnificence of those depots to the marketer is that he would always sources products from nearest depot to their filling stations. Having move
by means of all the above requirements and process, congratulations and welcome to the multimillion dollars trade. Sure; you could have gotten every thing required to start this business. You could safe an workplace space within NNPC premises. The cost is nonetheless very minimal since many entrepreneurs share the identical corridor.

SEE Also: How to Take part In the Nigerian Oil And Fuel Sector

You additionally need depot. The depot consultant to be answerable for all company activities within the depot. The depot consultant pays in draft issued in favors of NNPC on behalf of the corporate. NNPC expected each marketer to have sales representatives in each depot. For any marketer, it is expected that the company ought to have its own truck however this may be elective and is determined by the accessible capital. Thereare at all times trucks at the depot for hiring.

Activities At Filling Station

The minimal pumps required by NNPC in station is four-6 pumps for premium mild spirit (PMS petrol) one pump for Auto motive gasoline oil (In the past Diesel), one for Twin goal kerosene (DPK), Additionally it is expected that one station manager, one supervisor and 6 attendants at all times in company uniform. Every attendant to man every pump. Island. The human relations of the staff matter so much in determine the gross sales volume of the station.

Here, we are taking a look at normal situation of the market and never abnormal state of affairs of scarcity of the products. It needs to be famous that revenue in this enterprise is base on the amount of products you can sell in you station. However, underneath abnormal scenario, irrespective of how distant your station is positioned, you’ll at all times make a sale. Once the loading truck arrived at the filling station. The truck is parked for about 15-20
minutes to permit product to settle right down to its normal stage.

The manager takes haulage utilizing haulage bar and examine the determine to that recorded by the company depot representative. Once the recorded determine by each events is confirmed to be appropriate, the truck is allowed to discharge its contents and haulage bar is further used within the
underground tanks to affirm the precise amount of the discharged merchandise.

Construction Of Underground Tanks

Development of underground tank is likely one of the points of filling station that really consume cash. For a typical filling station, you need at least 4 underground tanks of 30,000 forty five,000 litres capability.

In the past = 30,000 – 45,000 litres
PMS = 30,000 – forty five,000 litres
DPK = 30,000 – forty five,000 litres

To have a storage and customary beneath-floor tanks that might be durable for plenty of years, it’s advisable to used 4mm plate (thickness). There are some companies that specialize on this construction.

The actual price of each tank might notice be simply determined because of Hyperinflation in our economy. Therefore it is estimated that every tank may value as comparable to N500,000. Nevertheless, buying the plates, you’ll be able to make use of the services of local welders on order to cut back the fee.

Buy Of Pumps

The minimal numbers of pumps required by the regulating body (DPR) is six pumps. This will depend on available fund to the investor. You can go for brand spanking new pumps or pretty used (“Tokunbo . Fairly used pumps may value as much as N150,00 every, whereas new pumps may also value as a lot as N500,000 – N1,000,000 and above. Under are a few of the sequence from Zcheng –

Establishing An Operational Filling Station Workplace

For any impartial oil marketing company in Nigeria, it is anticipated that the organization should have an workplace of operation. A well established oil marketing firm should have:

– Office of the managing Director
– Workplace of the overall Manager
– Accounts division
– Gross sales/advertising and marketing division
– Upkeep division/drivers.

The workplace of the managing director like some other group serves because the chief executive officer of the corporate. This is the place most of the
selections on learn how to handle and run the affaire of the company take place. The MD decides on how to control the finance and operation of the company.

The general supervisor sees to the over all operations of the company from filling station to the depot operation. He additionally sees to the account and the advertising and marketing department actions.

SEE Additionally: How Engine Oil (Lubricant) Business Is A Worthwhile Funding

An accountant usually controls the account division. He is also in charge of the company’s activities with the financial institution. He ensures that the sales in station are adequately accounted for. He also ensures that Bank draft are obtained and given to the depot supervisor or consultant to load any of the company product allocated by PPMC. The accountant have to be vigilant and sincere as a way to be ready to monitor fraudulent practices of the station managers and the attendants. Their sharp practices might have an effect on the gross sales within the station.

Sales/Marketing Department

This is one other necessary division as far as gross sales of petroleum products resembling In the past, LPFO, DPK, PMS to industries. The sales officer or manager visits corporations to obtain LPO (Native purchase order) for the corporate and also he make sure that a product is provided to the corporate as stipulated in LPO. And prompt cost by the company provided.

Some supplies which are required on this division are as observe

1. Daily gross sales records for each station
2. Prospects credit score/Debit cards
3. Invoice
4. Receipts
5. Waybills.

The waybill is often attached to NNPC meter Ticket for every depot loading. The account department ought to regularly liaise with the gross sales so that accurate document of the loading at the depot might be precisely recorded. If the corporate account division is computerized, then all information of payment by the shoppers and loading at depot should be saved within the ample information for all refers records for an auditor of the company to prepare the company annual report to find out the performance of the corporate. That’s, revenue and the loss account of the
company.

Upkeep Division

This division all the time employ the services of pump maintenance to service pumps at the stations. Some company additionally employs mechanics both full time or half-time base to take care of and repaired company trucks and autos. Drivers of the company are also included on this department.

Issues Arising In Petroleum Merchandise Advertising In Nigeria

However, the next problems may come up in transit because transportation is normally handily by third get together contractor by clients themselves.

– Scarcity in loaded quantity
– Delay in provide of products
– Adulteration, contamination and theft of merchandise.
– Armed Rubbery within the filing station

It’s due to this fact essential to have a great information of the authorised customary procedures for dealing with all petroleum merchandise within the business. All petroleum products whether or not Petrol, Kerosene, low-pour gasoline oil and excessive-gas oil are usually equipped in bulk truck of assorted capacities, Calibrated by accepted impartial petroleum inspectors. The problem related to adulteration, contamination and theft of petroleum merchandise are finest addressed by way of correct understanding of the next:

– Title and address of the marketer
– Identify and deal with of transporter, Truck registration quantity
– Date of calibration compartment tank heights
– Haulage certificate number
– Title, deal with, stamp and signature of the authorised calibration firm.

LOADING: The petroleum advertising strictly ensures compliance with the foundations, laws and produces for loading petroleum merchandise. The following data is offered on the copy of delivery invoices to the shoppers.

– Depot location
– Date and time of loading
– Haulage measurement of the compartments
– Seal numbers on the ma hole covers and control valves.
– Authorized signature.

Supply: On the arrival of the product at the buyer location, the designated receiving officer must make sure that the following guidelines are followed to ensure that quantity and quality of the products are maintained.

– Collect the dispatch notice and haulage certificate form the truck driver.

– Word the time of arrival and be sure that the truck is positioned on stage floor before commencing the strategy of discharging the product.

– Verify that seal on the man hole covers and inside control valves are still intact and that their numbers correspond to these indicated on the dispatch word.

– Affirm the product quantity equipped as indicated, using a hydrometer thermometer, T- bar haulage paste and water discovering paste.

– Affirm the product type with the shade code on the truck as indicated by the waybill.

– Verify that they’re no water in every compartment by smearing the water discovering paste on the T-bar and decreasing it via the man gap hatch. The paste modifications from golden to a brilliant pink colour if water is present.

– Verify the haulage studying of every compartment by smearing the haulage paste on the T- bar and reducing it through the hatch cover into product.

Hearth Control Measures

Petroleum merchandise have excessive flammability and therefore fire hazards. The triangle of combustion consists of the fuel heat to boost its temperature from the ambient to the flash level and then hearth or ignition point and oxygen to assist combustion continuously.

Therefore, establishing petroleum merchandise advertising firm is a profitable venture and this will depend on administration of both human and monetary assets of the corporate. Under is specimen Settlement between NNPC (DPR, PPML) and the petroleum marketing company.

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