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How to Start a Cooking Gas Supply Company in Nigeria

More people are turning to liquefied petroleum gas (LPG) to fuel their cooking. There are a couple of reasons for this. The most obvious one is that it’s become a more preferred alternative to kerosene. The price of the latter has soared in recent times, and has caused many to consider switching to gas.

Another reason is that we’re growing more concerned about the health and other safety risks associated with kerosene stove. We believe that cooking gas stored in cylinders is a cleaner alternative.

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Given these factors, the cooking gas business has become more lucrative, as demand has steadily grown. If you’ve been thinking about becoming a retailer of LPG, now’s a good time to set things in motion for this business.

Steps You Should Take

1. Find out all you can about the business

There’s a lot to learn about cooking gas if you’re only just starting. You’ll want to know what the product really is, and how it’s sold. The nature of the compund, pricing, distribution systems, etc, are all important bits of information you should pick up.

Practical aspects such as positioning gas cylinders, quantities, and the distinction between qualities of gas, are key as well.

Note that safety practices are crucial as well. Because LPG is highly flammable, you’ll have to handle it with care. Find out how to do this as a seller.

2. Write a business plan

Your business plan will contain your description of the business, its target market, how much you believe you will be making from it, and the costs you will be incurring in starting off and running for the first few months.

3. Find a good location

What thing should you consider when choosing a location for your cooking gas business?

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Here’s one: the neighborhood, and openness of its inhabitants to using gas. Not everyone is comfortable with cooking with LPG. Your best bet for regular patronage and great gains will be to set up close to or within neighborhoods in which people are willing to use your product.

Safety issues should always be top of mind when you’re dealing with LPG. So just be sure that you’re storing your gas in an area that’s reasonably secure. Steer clear from spots where there are fires being lit regularly.

4. Get the right equipment

Purchase tanks, scales, liquid pumps, and other measuring and filling devices, and have them installed by people who known how to handle them.

5. Find LPG supplies

If you’re a retailer, you can get your LPG from wholesale depots in your city or town. The quantities you purchase will depend on the scale of your retail business.

6. Market and sell your product

With your product and equipment in place, you’re ready to begin selling cooking gas.

You can attract your first customers by sharing handbills for your business to people in the neighborhood. As an extra incentive, you may offer token gifts to the first 50 or 100 persons who purchase cooking gas at your location.

Featured image source: Daily Post NG

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Ikenna Nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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