business plan for lpg filling station

Gas Station Business Plan Template

Written by Dave Lavinsky

Gas Station Business Plan

You’ve come to the right place to create your Gas Station business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gas stations.

Below is a sample business plan for a gas station to help you create each section of your gas station business plan.

Executive Summary

Business overview.

Accelerate Station is a startup gas station located in Dallas, Texas. The company was founded by Bill Johnson, an experienced gas station manager who has gained valuable knowledge on how to run a gas station during the past ten years while working at GAS&GO MART. Now that Bill has experienced managing a gas station, he is ready to start his own company, Accelerate Station. Bill is confident that his business management skills, combined with his understanding of the gas station industry, will enable him to run a profitable gas station of his own. Bill is recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management, and customer support.

Accelerate Station will provide gasoline, diesel, electric vehicle charging, automotive parts and accessories, and a small snack assortment. Accelerate Station will be the go-to gas station in a busy intersection located in the heart of the Dallas metropolitan area. The company will be the ultimate choice for convenience and customer service while offering the lowest prices in the area.

Product Offering

The following are the products and services that Accelerate Station will offer:

• Electric Vehicle Charging
• Air (for tires)
• Automotive Parts Assortment (lights, batteries, etc.)
• Automotive Accessories (license plate holders, air fresheners, etc.)
• Snacks & Beverages (vending machine access)

Customer Focus

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

Management Team

Accelerate Station will be owned and operated by Bill Johnson. Bill is a recent graduate of Texas University with a degree in business administration. He also has over ten years of experience working as a gas station manager for another local company. Bill will be the chief executive officer for the gas station. He will oversee the staff’s activities and day-to-day operations.

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee the gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Bill and Stephen have hired a marketing professional, Mary Miller, to become a member of the Accelerate Station management team. Mary is a graduate of the University of Maine with a bachelor’s degree in marketing. Bill and Stephen rely on Mary’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Accelerate Station will be able to achieve success by offering the following competitive advantages:

• High-traffic location that is visible and accessible to passersby from multiple major streets and highways.
• Accelerate Station uses the latest technology to make it easy and convenient for customers to gas up quickly. Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.
• The company’s leadership team has built a network of supplier relationships that will allow Accelerate Station to purchase gasoline for lower prices than their competitors. Accelerate will then be able to pass this cost-savings on to customers.

Financial Highlights

Accelerate Station is seeking $880,000 in debt financing to launch its gas station business. The funding will be dedicated towards securing the location and purchasing gas station equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Gas station build-out: $480,000
• Gas station equipment, supplies, and materials: $220,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Accelerate Station.

Company Overview

Who is accelerate station.

Accelerate Station is a newly established gas station company in Dallas, Texas. Accelerate will be the first choice for drivers in Dallas for its convenient location, top-notch customer service, and low prices on gasoline, diesel, and electric vehicle charging. The company will serve drivers of private and commercial vehicles of all types and sizes.

Accelerate Station will be able to guarantee the lowest prices in the area thanks to its leadership team members’ existing supplier network connections. The company offers customers the option to pay using a convenient app, at the pump, or through the central kiosk. Customers can also purchase automotive parts and accessories, and grab a quick snack for the road at the station’s convenient vending machines.

Accelerate Station History

Accelerate Station is owned and operated by Bill Johnson, an experienced gas station manager who has gained valuable knowledge during his ten year tenure working at another local gas station. In addition to his hands-on experience, Bill has recently graduated from Texas University with a degree in business administration. Now that Bill has gained the experience and know-how he needs to manage a gas station, he is ready to start one of his own. Bill has begun recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management,  and customer support.

Since incorporation, Accelerate Station has achieved the following milestones:

• Registered Accelerate Station, LLC to transact business in the state of Texas
• Has begun negotiations to purchase the property and reached out to potential builders to construct the station
• Reached out to numerous contacts to include gasoline and diesel suppliers and electric vehicle charging station providers to begin obtaining supplier contracts
• Began recruiting a staff of gas station attendants to work at Accelerate Station

Accelerate Station Services

• Automotive Accessories (license plate holders, air freshener, etc.)

Industry Analysis

The gas station industry in the United States is valued at an estimated $138B with over 13,800 businesses in operation and more than 162,000 employees nationwide. Included in the gas station industry are businesses that sell automotive fuels such as gas and diesel, automotive parts and services (such as car washes), and other non-automotive goods and services. Many gas stations also co-locate with a convenience store to drive more traffic to their business. These gas stations are part of the larger industry of “gas stations with convenience stores”, which is valued at $649B in the U.S. with over 122,000 operating businesses and 1.0M employees across the country. In addition to gasoline and automotive services, these businesses also sell groceries and other convenience goods.

Gas station market demand is dependent on the volume of drivers on the road (both personal and commercial). Profitability typically depends on industry operators’ ability to secure high traffic locations and purchase their gas for the lowest prices possible.

A growing challenge for gas station industry operators is the rise in electric vehicles. To remain competitive, many industry operators have begun offering electric vehicle charging options in addition to traditional gasoline.

Customer Analysis

Demographic profile of target market.

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. Accelerate will be able to accommodate vehicles of all types and sizes including diesel, hybrid, and electric vehicles. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

The precise demographics for Dallas, Texas are:

Customer Segmentation

Accelerate will primarily target the following customer profiles:

• Drivers of private vehicles
• Drivers of commercial vehicles
• Drivers of gasoline vehicles
• Drivers of diesel vehicles
• Drivers of electric vehicles

Competitive Analysis

Direct and indirect competitors.

Accelerate Station will face competition from other companies with similar business profiles. A description of each competitor company is below.

GAS&GO MART

GAS&GO MART is one of the largest and oldest commercial gas stations based in Dallas, Texas. Established in 1955, the company currently operates twenty stations throughout the Dallas-Fort Worth metropolitan area. GAS&GO MART sells gasoline and diesel, automotive parts, and snacks. GAS&GO MART aims to deliver quick service for customers on the go. The company uses a stringent inspection process to ensure all of its products are the best quality. GAS&GO MART’s team of experienced gas station attendants are available to assist customers as needed.

Speedy Gas Station

Speedy Gas Station is a small gas station catering to local drivers in Dallas, Texas. Speedy Gas Station operates one location in a busy retail district. The company provides gasoline, diesel, and a self-service car wash. Speedy Gas Station is family owned and operated by former race car drivers who know the importance of fast service. The gas station attendants are able to help customers check their oil, tires, and other small automotive issues. The company prides itself on providing the fastest service and quality products.

Express Gas Station

Express Gas Station is a trusted Dallas, Texas-based gas station that provides superior gasoline to drivers in Dallas. The company offers a spacious layout that can accommodate the largest of commercial vehicles and is equipped with an electric vehicle charging station. Express Gas Station operates a single location near the outskirts of Dallas and is in the process of opening two additional locations within the city.

Competitive Advantage

Accelerate Station will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Accelerate Station will offer the unique value proposition to its clientele:

• Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.

Promotions Strategy

The promotions strategy for Accelerate Station is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure Accelerate maintains an active social media presence with regular updates and promotional content to incentivize customers to use the company’s services.

Professional Associations and Networking

Accelerate Station will become a member of professional associations such as the American Gas Station Association, Dallas Gas Station Managers Society, and the Texas Diesel Association. The leadership team will focus their networking efforts on expanding the company’s supplier network.

Print Advertising

Accelerate Station will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents and businesses that are likely to frequent the gas station.

Website/SEO Marketing

Accelerate Station will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list the products and services Accelerate is able to provide. The website will also list information on discounts and promotional giveaways.

The marketing director will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Dallas gas station ” or “gas station near me”, Accelerate Station will be listed at the top of the search results.

The pricing of Accelerate Station will be moderate and lower than its competitors so customers feel they receive value when purchasing the company’s products and services. Accelerate will also offer discounts to regular customers.

Operations Plan

The following will be the operations plan for Accelerate Station.

Operation Functions:

• Bill Johnson will be the CEO of the company. He will oversee the gas station staff and day-to-day operations. Bill has spent the past year recruiting the following staff:
• Stephen Smith – Chief Operating Officer who will manage the budgeting, supplier relationships, and logistics.
• Jennifer Willams – Bookkeeper who will provide all accounting, tax payments, and monthly financial reporting.
• Mary Miller – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and print advertising campaigns.
• Micheal Jones – Quality Control Manager who will oversee all inspections of products, equipment, and processes.

Milestones:

Accelerate Station will have the following milestones complete in the next six months.

12/1/2022 – Finalize contract to purchase property

12/15/2022 – Finalize employment contracts for the Accelerate Station management team

1/1/2023 – Begin build-out of the gas station and purchase equipment, materials, and supplies

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts with suppliers

3/15/2023 – Accelerate Station officially opens for business

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Financial Plan

Key revenue & costs.

The revenue drivers for Accelerate Station are the fees charged to customers in exchange for the company’s products and services. When it comes to pricing, the station will monitor supply costs, average prices charged by competitors, and product availability in the market to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a gas station. The expenses will be the product itself, payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average sales per month: 2,000
• Average fees per month: $15,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Gas Station Business Plan FAQs

What is a gas station business plan.

A gas station business plan is a plan to start and/or grow your gas station business. Among other things, a fuel station business plan outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Gas Station business plan using our Gas Station Business Plan Template here .

What are the Main Types of Gas Stations?

There are a number of different kinds of gas stations, some examples include: Franchise Gas Station, Full Service Gas Station, or Quick Service Gas Station.

How Do You Get Funding for Your Gas Station?

After you complete your filling station business plan, you can start to seek financing.

Gas Stations are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Gas Station Business?

Starting a Gas Station business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Gas Station Business Plan - The first step in starting a business is to create a detailed fuel station business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your Gas Station business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your Gas Station business is in compliance with local laws.

3. Register Your Gas Station Business -Once you have chosen a legal structure, the next step is to register your Gas Station business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your Gas Station business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees -There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Gas Station Equipment & Supplies - In order to start your Gas Station business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your Gas Station business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Gas Station business: How to Start a Gas Station

Starting A Petrol Station Business Plan (PDF)

Starting a petrol station business is a highly lucrative venture, given its essential role in the daily lives of millions. A petrol station also known as a gas station, filling station, or a service station is a facility that sell fuel and engine lubricants to motor vehicles. Fuel dispensers are used to pump fuel directly into the tanks of the motor vehicles. In the ever-growing automotive world, the demand for fuel remains consistently high, making petrol stations a cornerstone in both urban and rural landscapes. This business not only caters to the basic needs of vehicle owners but also serves as a critical component in the supply chain of goods and services. The profitability of a petrol station is underscored by its ability to maintain robust margins, stemming from the high volume of sales and the diverse range of services and products it can offer.

The appeal of owning a petrol station business lies in its resilience to economic fluctuations. While other industries may falter during economic downturns, the need for fuel remains relatively constant, providing a stable source of income for station owners. Moreover, with the integration of additional services such as convenience stores, car washes, and maintenance services, petrol stations have evolved into multi-faceted establishments, further enhancing their profitability. This diversification not only boosts revenue but also attracts a broader customer base, increasing the station’s visibility and market presence. This article will outline how start start a petrol station business and the petrol station business plan – PDF, Word & Excel.

Market Research

When starting a petrol station business, market research is a critical step that cannot be overlooked. It begins with a detailed demographic analysis to understand the population in your target area, focusing on factors such as income levels, vehicle ownership, and commuting patterns, which are crucial in estimating the potential customer base and their service needs. Equally important is location scouting, where the success of your petrol station largely depends on choosing a site with high traffic volumes, easy accessibility, and little competition, ideally near highways, commercial hubs, or residential areas. Additionally, a thorough competition analysis is vital, requiring you to identify and study existing petrol stations in the vicinity to understand their offerings, pricing, customer volume, and how you can differentiate your station.

The market research should also include trend analysis and an understanding of the regulatory landscape. Keeping abreast of the latest trends in the fuel industry, such as the rise of electric vehicles, fluctuations in fuel prices, and environmental regulations, is essential for future-proofing your business. At the same time, being well-versed in the legal requirements, including environmental regulations, safety standards, and local zoning laws, is crucial for smooth operation. Customer preferences and expectations must also be at the forefront of your research. Conducting surveys to understand what potential customers expect from your petrol station, whether it be additional services like car washes, convenience stores, or food options, is key to catering to their needs effectively.

The financial viability of your petrol station business is a cornerstone of your market research. This involves analyzing the initial investment, ongoing operational costs, and potential revenue streams. Such a financial assessment not only aids in creating a realistic business plan but also determines the feasibility and potential profitability of your petrol station. Comprehensive market research not only aids in making informed decisions but also sets the foundation for the successful establishment and operation of your petrol station, ensuring it’s not just about selling fuel but about fulfilling the evolving needs of your customers in a competitive market.

Location for Petrol Station Business

The choice of location is most important when setting up your petrol station business. You must choose a location close or next to strategic and busy road networks. This can refer to major highways or major streets. Still on this, it might seem best to choose a location in urban settings. There are some possible issues with that e.g. high land or leasing costs and proximity to competitors. Try also looking into peri-urban and even rural areas. You can still get good business there and chances are high that competition will be limited.

You want a spot that generally has a smooth and level terrain. If you are starting from scratch and the terrain is rough and uneven, it might cost you more to work on it. Ensure that your petrol station allows easy access and exit for all types of vehicles. Your petrol station must be clearly visible from all angles and from a considerable distance away. Then of course be it you settle for urban, peri-urban, or rural, try to set up your petrol station not too close to other competitors. Do not forget that there are environmental implications in setting up or operating a petrol station. That is why it is wise to engage the local authorities for guidance and ratification. The cost of acquiring or leasing the land & premises should be included in the filling station business plan.

The premises of your petrol station play a pivotal role in shaping the overall customer experience and operational efficiency. A well-designed and maintained physical space not only attracts customers but also ensures their safety and convenience. Your petrol station’s layout should provide ample space for fueling lanes, parking, and easy traffic flow. Clearly marked entrances and exits, along with well-lit areas, enhance safety during both day and night. Adequate landscaping and aesthetics can also contribute to a positive image, drawing in more customers and fostering a sense of trust and reliability. The primary structure, which typically houses the convenience store and administrative offices, should be strategically located and well-designed to maximize visibility and accessibility. It’s essential to create an inviting and functional interior space, ensuring that customers can easily browse your store’s offerings and access essential services like restrooms and ATMs.

Equipment is the backbone of any petrol station operation, and its proper functioning is essential for delivering reliable services to your customers. First and foremost, fuel dispensers are the heart of your business, and they must be well-maintained and calibrated to dispense fuel accurately and efficiently. Regular inspections and servicing of these machines are crucial to prevent fuel wastage and ensure customer satisfaction. Underground storage tanks are another critical piece of equipment that requires diligent maintenance. Regular leak detection tests and compliance with environmental regulations are imperative to avoid costly environmental contamination issues and potential fines. Ensuring the structural integrity of these tanks is vital for the safety of your premises and the community.

A petrol station canopy is a crucial component of any fueling station infrastructure. It serves as a protective cover over the fuel dispensers, providing shelter to customers and vehicles during refueling, regardless of weather conditions. The canopy also plays a significant role in branding, as it often displays the petrol station’s name and logo, making it easily identifiable to passing motorists. Beyond aesthetics and branding, the canopy offers practical benefits by shielding customers from rain, sun, and other environmental elements, enhancing their overall experience and safety at the station. Other required equipment include fill pipes, fire extinguishers, back-up generator, air compressor, surveillance cameras, branded uniforms, protective clothing, safe, office equipment and supplies, and signage. In addition to fuel-related equipment, convenience store equipment, such as refrigeration units, cash registers, and security systems are required. Other equipment needs will be informed by additional services you choose to offer. The costs of purchasing the equipment should be included in the gas station business plan.

Products & Services

The core business of a petrol station is fuel retail. The commonly sold fuels are petrol/gasoline and diesel. There are 3 types of petrol station services that you can offer as follows:

Full Service

Let us suppose you get to a petrol station and an attendant comes to serve you. They ask how much fuel you want and they pump it in for you. They also proceed to clean your windscreen (also known as the windshield). They go on to offer to do oil and water checks in your engine. They then wrap it up by checking the pressure of your tyres. As a customer, you do not get to do anything at all; the attendant does it for you. This is what a full service is all about.

Partial Service

This one is quite common in some countries. It entails the attendant only pumping in the fuel for you. That is their sole responsibility. Cleaning the windshield you would do yourself, that is if the equipment is even there. Oil, water, and pressure checks are all your responsibility.

Self-Service Petrol Station

Here the customers does everything themselves, including the pumping. This is also common in some countries and almost non-existent in some countries. There is an interesting variation to this self-service approach. This is whereby there are no attendants at the petrol station at all. That functions using sophisticated software and specialized pumps – the petrol station can be totally unmanned.

Additional Products & Services

It is strategic to not just sell fuel or gas alone. One of the keys to success in the petrol station business is having several revenue streams. Look into offering additional but related services to lure more customers. You can have a convenience store at your petrol station – this is like a mini-grocery shop which sells basic goods and snacks. Other possibilities are setting up a car wash, selling vehicles accessories, selling lubricants, selling LP gas, selling kerosene (i.e. paraffin), or offering tyre repairs (plus sales) services. You can even do actual vehicle repairs, diagnostics, wheel alignments, and the like. This will significantly endow your petrol station business with a superior value proposition. All the products and services that you offer should be included in your fuel station business plan.

Branding is a critical aspect of establishing a strong and recognizable presence in the highly competitive petrol station industry. Your petrol station’s brand identity encompasses more than just a logo; it encompasses the overall perception and image your station conveys to customers. Effective branding not only fosters customer loyalty but also attracts new patrons to your station.

Your brand should reflect the values, mission, and commitment of your petrol station business. It should convey trustworthiness, reliability, and a commitment to customer satisfaction. Elements such as signage, canopy design, color schemes, and even the cleanliness and appearance of your premises all contribute to your brand image. Consistency in branding across all touchpoints, including advertising, social media, and physical locations, reinforces your station’s identity and helps build a loyal customer base. Remember that a well-defined and appealing brand can set you apart from competitors and create a lasting impression in the minds of consumers, ultimately driving the success and growth of your petrol station business.

Staff & Management

A filling station business does not need that many people. It is commonplace to get to a petrol station and find a few personnel. The number of pumps you will have and how busy the petrol station generally is can call for more hands on deck. Otherwise the most basic line-up of staff that suffices for a petrol station is fuel attendants, an administrator, and operations manager (also known as site manager). The additional services you choose to offer will also determine your staffing needs. The gas station business plan should include the salaries of all your staff.

Budgeting and Financial Planning

Starting a petrol station business is a significant undertaking, and success in this venture hinges on meticulous budgeting and financial planning. To begin, you’ll need to allocate funds for your initial investment. This includes selecting a prime location, covering land and construction costs, obtaining the necessary licenses and permits, and ensuring environmental compliance. These initial steps are pivotal in establishing a strong foundation for your petrol station.

Equally crucial is budgeting for equipment and inventory. This entails factoring in the cost of fuel pumps, storage tanks, and the initial fuel inventory. Additionally, you should consider stocking your convenience store with an array of products to attract customers. Operating expenses such as employee salaries, utilities, maintenance, and marketing efforts must also be budgeted to ensure the smooth daily operation of your petrol station.

Financial projections and contingency planning play essential roles as well. Creating a detailed financial forecast that considers various factors affecting the petrol station industry, such as fuel price fluctuations and seasonal demand, will help you chart a successful course. Including a contingency fund in your budget is essential to handle unforeseen expenses and maintain your business’s stability. Exploring financing options and establishing robust financial management systems will further contribute to the financial health and long-term sustainability of your petrol station business.

Understanding the spectrum of potential customers is essential in the petrol station business, where diverse groups have distinct needs and preferences. One primary group is commuters/individuals with cars, who make up a significant portion of the customer base. These individuals prioritize convenience, efficiency, and reliability, often choosing petrol stations that are easily accessible and offer quick service. Another important segment includes commercial vehicles and fleets, such as trucks, buses, and company vehicles, which require regular refueling. These customers often seek contractual fuel supply agreements, and offering bulk pricing or loyalty programs can be particularly attractive to them. Additionally, local residents in the vicinity of your petrol station can become regular patrons, especially if additional services like a convenience store, car wash, or café are available.

Travelers and long-distance drivers represent another key customer group, especially for petrol stations located near highways or popular routes. These customers often look for more comprehensive services, including rest areas, food options, and clean restrooms, along with fuel. On the environmental front, there’s a growing segment of environmentally conscious consumers who prefer eco-friendly options. Catering to this demographic might involve offering alternative fuels or electric vehicle charging stations, aligning with the increasing awareness and demand for environmentally responsible choices.

The potential customer base also includes emergency and service vehicles, such as ambulances, fire trucks, and police cars, depending on the location of the petrol station. Serving these critical services can enhance the station’s reputation within the community. By tailoring services and facilities to meet the specific needs of these diverse groups, a petrol station can not only attract but also retain a broad and loyal customer base.

Keys To Profitability

Achieving profitability in your petrol station business hinges on several critical factors. First and foremost, efficient operations play a pivotal role. Streamlining your processes, ensuring well-maintained fuel dispensers, and implementing robust inventory management systems are essential steps. Well-trained staff who provide excellent customer service can foster customer satisfaction and loyalty, which in turn contributes to profitability.

Another key element is pricing strategy. Developing a competitive pricing strategy that accounts for location, competition, and cost structures is paramount. Dynamic pricing strategies can also be advantageous to adjust fuel prices based on market conditions. Additionally, investing in marketing and promotional efforts, such as digital advertising and loyalty programs, can attract new customers and keep existing ones engaged.

Managing your convenience store for profitability is equally important. Optimizing product selection and layout to encourage impulse purchases, offering high-margin items, and controlling operational costs are vital steps. To maintain profitability, focus on cost control by monitoring expenses like utilities and staff wages. Prioritizing safety measures and staying compliant with environmental and regulatory standards can prevent costly liabilities. Building customer loyalty through excellent service and rewards programs will also contribute to long-term success. Financial monitoring is crucial to track your performance and adjust strategies based on data and market trends.

Pre-Written Petrol Station Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the petrol station business, we encourage you to purchase our well-researched and comprehensive filling station business plan. We introduced the business plans after discovering that many were venturing into the gas station business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global gas station business plan will make it easier for you to launch and run your petrol pump station business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a fuel station business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the petrol station business.

Uses of the Petrol Station Business Plan (PDF, Word And Excel)

The fuel station business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your filling station business
• As a petrol station business proposal
• Assessing profitability of the fuel station business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Filling Station Business Plan (PDF, Word And Excel)

The business plan for fuel service station includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the gas station business fail, so that you can avoid their mistakes
• Ways to raise capital to start your fuel station business

The fuel station business plan package consists of 4 files

• Petrol Station Business Plan – PDF file (Comprehensive Version – 78 Pages)
• Petrol Station Business Plan – Editable Word File (Comprehensive Version – 78 Pages)
• Petrol Station Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 43 pages)
• Petrol Station Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, amount of fuel sold etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Petrol Station Business Plan (PDF)

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Get the Petrol Station Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your petrol station business! Check out our collection of business plans  , and more business ideas .

Related Posts

Starting Minibus Transport Business Plan (PDF)

Starting Oyster Mushrooms Farming Business

Starting a Profitable Vending Machines Business

Starting Solar Installation Business Plan (PDF)

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!

How to Start a Cooking Gas Retail Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Oil & Gas Industry

Are you interested in doing business in the oil and gas industry? Do you need a sample cooking gas retail business plan template? Then below is an in-depth guide on how to start a cooking gas retailing business . Cooking gas (natural gas) is a clear, odorless gas that is used for cooking as a cheaper alternative to electric energy.

It is also a clean alternative to coal-based electricity and kerosene-fueled cooking. This explains why it is now the most preferred cooking fuel by homes and businesses. The huge and booming demand for cooking gas in virtually all urban settlements worldwide has created lucrative opportunities for smart entrepreneurs. If you have been looking to start a business of your own, a cooking gas retail business might just be the best option for you.

The cooking gas retail business involves buying huge quantities of cooking gas, storing it in tanks, and selling it to individuals that use it for domestic cooking as well as industries that require large quantities for fueling purposes. In this post, we will be looking at the steps involved in starting a cooking gas retailing business.

Suggested for You

• 50 Best Oil and Gas Business ideas You Can Start Today
• How to Start a Private Mini Crude Oil Refinery Business
• How to Start a Kerosene Retail & Supply Company – Sample Business Plan Template
• How to Start a Crude Oil Brokerage Company – Sample Business Plan Template
• How to Start an Oil and Gas Company – Sample Business Plan Template

But before we get into that, you need to bear in mind or be reminded that cooking gas could be very dangerous if not properly handled. So, think twice before taking a plunge. Now, here are the steps involved in setting up a cooking gas retail business:

Starting a Cooking Gas Retail Company – Sample Business Plan Template

1. learn everything you can about this business.

• How is cooking gas measured?
• Where do you buy from?
• What are the common challenges cooking gas retailers face?
• How do you identify quality gas?
• How do you handle your gas cylinders?
• How do you refill a customer’s gas cylinder?
• What are the various types of cooking gas that exists and which is the best?
• What are the factors that affect the market price of cooking gas?

The questions above are important and you definitely need to answer them before investing a dime in the cooking gas retail business. This is why investing time to learn the intricacies of the cooking gas retail business is very important.

Knowledge is one of the keys to success in any business. You definitely cannot plunge into an unknown business terrain and hope to find success within the shortest period of time. So I advice you invest time to get the basic insider knowledge about this business. If possible, it is best you seek tutelage from someone established in this business.

2. Write a business plan

No matter how lucrative a business idea or opportunity might seem, writing a business plan is very important, as it reveals many important details that you may not have paid attention to. Writing a business plan will give you some insight into the feasibility of the business in your locale, the required start-up capital, the costs of running the business, the market and competition, and other very important factors.

3. Find an ideal location

After the necessary homework, you need to find an appropriate piece of property for your business. Because of the hazardous nature of cooking gas, most federal and state governments have laid-down regulations concerning the site of a cooking gas retailing business. So it is very important that you find out the rules that apply in your state or country regarding property to be used for cooking gas retailing. A good idea is to consult an attorney.

Another factor you will need to bear in mind when choosing a location is your market. It is important that you locate your business close to where there are many potential customers. For instance, locating such business as cooking gas retailing in a rural area is a bad idea.

However, some good places to site your cooking gas retail store are residential areas (majorly dominated by the middle class), high institutions (students now prefer cooking with gas than kerosene because gas is odorless, smoke-free, cooks faster and last longer), entertainment centers such as hotels, restaurants and fast food outlets.

4. Install the needed facilities

Hire professionals to help you install the tanks, electronics, and other equipment and facilities that you will need to conduct your business safely. ( Remember, cooking gas could be dangerous )! After installation, it is important that you check all equipment and facilities and ensure that they have been well-fixed. You must also ensure that there are no leakages or loose fittings.

5. Make arrangements for transportation

If you would have to transport or distribute cooking gas to customers in fairly distant places, then you will need to get a truck or van that is capable of safely hauling cooking gas. But if you cannot afford to buy one, you can lease one each time you need it, pending when you would be able to procure yours.

Whether you have your truck or you would be getting one on lease, you must ensure that its conditions meet the requirements for vehicles hauling hazardous materials such as cooking gas.

6. Handle the legal aspect

You will need to have a standard service contract drafted by your attorney. If required, send a copy of this contract to your state’s regulatory agency and await the agency’s approval. After your contract has been approved, send the approval letter with your financial statement to the utility company you would be doing business with. Most utility companies require a bank statement to prove the credibility and financial strength of your business.

7. Insure your business

Sh*t happens in business, but when it comes to a cooking gas retail business; this sh*t could cost you your life or property, and even earn you a lawsuit. Mind you that you are dealing with a hazardous substance, an inflammable product; so please get an insurance cover, especially for fire accidents.

8. Start operations and marketing

With everything in place, you can launch your business. To attract customers, you can adopt aggressive marketing strategies and offer attractive discounts. Promise customers rewards for referring new customers, and you would attract many customers within a short period.

Additional tips for running a cooking gas retail business

a. Always handle cooking gas and all equipment with caution . Cooking gas is a hazardous gas that could cause a fire outbreak if not well handled. Never allow smokers and open flame in and around your business location.

b. Always respond promptly to any correspondence from your state or country’s regulatory agency, as faltering in this regard may attract huge fines or cost you your license.

c. Always keep in touch with your attorney to ensure that you remain compliant with current laws.

d. Always stay in touch with your suppliers, they will notify you of current trends and price changes. Remember that the price of gas fluctuates with respect to the price of other household cooking commodities such as kerosene and coal.

4 Challenges of Starting a Cooking Gas Retail Business

1. you will be dealing with an inflammable product.

Gas is a highly inflammable product and just one little mistake can result to an explosion; and a corresponding loss of lives and properties. So it is important you maintain a high safety standard in your premises and refill your customers gas tanks in open places. You should also place fire extinguishers strategically throughout your store and be sure to get insurance cover.

2. You are exposed to health hazards

In the course of refilling your gas tanks and those of the customers, you are bound to inhale at least a minimal dose of gas. This will not affect your health in anyway but when you inhale these small doses of gas over a long period of time, your health and life becomes endangered. A good way to protect yourself and your body is to buy gas masks and put them on when refilling the tanks.

3. The price of gas changes constantly

The price of gas rises and falls constantly, so you should always be on guard for this sudden price changes. The best way to tackle this challenge is to be well informed of industry developments.

4. Your sales is highly dependent on the economic situation of your region

If your business is sited in a region where the standard of living is poor and the inhabitants use more of firewood and kerosene stove, then your business is already a failure from the start. So try to site your business in a positive economic area with working class residents. You can also target restaurants, fast food outlets, etc; as these ones need a steady supply of gas.

Gas Station Business Plan Template [Updated 2024]

Gas Station Business Plan

If you want to start a new gas station business or expand your current gas station, you need a business plan.

The following gas station business plan template gives you the key elements to include in a winning business plan for all types of gas stations including a petrol station, automotive services, filling stations and other gas stations.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Gas Station Business Plan Example

Below are links to each of the key sections of a sample business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary II. Company Summary III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Comments are closed.

Gas Station Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

• Business plans

Gas Station Business Plan

Used 4,933 times

Take the first step towards success in the fuel industry with our professionally crafted Gas Station Business Plan template.

e-Sign with PandaDoc

Prepared for:

​ [Owner.FirstName] ​

​ [Owner.LastName] ​

Prepared by:

​ [Investor.FirstName] [Investor.LastName] ​

Executive Summary

Business overview.

​ [Owner.Company] is a gas station located in [Owner.City] , [Owner.State] . (Describe what the business offers and provide 1-2 sentences about what the business stands for and prioritizes.)

Products Served

​ [Owner.Company] products and services are categorized as follows:

(Additional products or services)

Customer Focus

​ [Owner.Company] will serve the residents of [Owner.State] and the immediate surrounding area, as well as those who live or work in (additional location). (Explanation of the population in these areas and why it’s a good target audience.)

Management Team

​ [Owner.Company] is led by [Owner.FirstName] [Owner.LastName] , who has been in the gas station business for (number) years. (1-2 sentences about owner/founder's background.)

To capture a share of commuter traffic passing through [Owner.City] , [Owner.State] .

(Objective)

Success Factors

​ [Owner.Company] is uniquely qualified to succeed for the following reasons:

High-quality products priced competitively

(Your business’ mission statement.)

Financial Summary

​ [Owner.Company] is seeking total funding of $(amount) of debt capital to launch its gas stations. The capital will be used for (expenses) . Specifically, these funds will be used as follows:

Store design and build: $150K

(Purpose): $(amount)

Projections for the next five years are as follows:

Company Summary

(Short paragraph about what the business offers and stands for, similar to the Business Overview in the Executive Summary.) [Owner.Company] is wholly owned by [Owner.FirstName] [Owner.LastName] .

​ [Owner.Company] History

(Paragraph about the history of the company.)

Startup Summary

​ [Investor.FirstName] [Investor.LastName] will invest $(amount) in [Owner.Company] . [Owner.Company] aims to secure $(amount) to finance the remaining startup costs.

The following chart shows projected startup costs for [Owner.Company] .

Products and Services

​ [Owner.Company] is a fully registered and licensed gas station in the U.S. that’s positioned in the industry to maximize profits. In addition to retailing diesel and gasoline, we will also sell products and services.

Auto services

(Product or service)

Industry Analysis

The Gas Station industry has experienced (describe what’s occurred in the industry over the past five years). (Describe how business is generated and how consumer spending has changed.)

(Additional industry analysis information, such as driving rates, oil prices, and in-store product sales.)

Market Analysis

​ [Owner.Company] will primarily serve residents of [Owner.State] and the immediate surrounding area in a 10-mile radius. We will also serve tourists traveling in vehicles. The area we serve is (description of population and why it’s a good target audience).

The demographics of [Owner.State] are:

Customer Segmentation

​ [Owner.Company] will primarily target the following customer segments:

Businesses with employees who drive to work.

(Customer segment.)

Competitive Analysis

Direct and indirect competitors.

The following businesses are located within a 5-mile radius of [Owner.Company] and are either direct or indirect competition:

(Business name)

(Description of business)

Competitive Advantage

​ [Owner.Company] has several advantages over competitors:

Relationships: [Owner.Company] has lived in (location) for 30+ years and has established relationships with local influencers, publications, and residents.

(Competitive advantage)

Marketing Plan

The [owner.company] brand.

The unique value proposition of the [Owner.Company] brand is (1-3 sentences describing the business’ value proposition).

Pricing Strategy

​ [Owner.Company] will keep its gas and convenience store products priced competitively with other gas stations within a 30-mile radius. Coupons and discounts will be offered to repeat customers.

Sales Strategy

Customers that purchase more than $15 of gas at [Owner.Company] will be given a 10% coupon for in-store purchases during the first six months of the gas station’s operation.

Promotions Strategy

Loyalty program.

​ [Owner.Company] will create a loyalty program to reward regular customers and encourage them to return over and over.

(Marketing Strategy)

(Description of marketing strategy.)

Operations Plan

Functional roles.

​ [Owner.Company] will be open (hours of operation and explanation of why that schedule was chosen).

​ [Owner.Company] intends to employ (number) cashiers and (number) (role) during peak hours and (number) cashiers and (number) (role) during off-peak hours. [Owner.Company] anticipates having (number) customers weekly.

In order to execute the business model for [Owner.Company] , we need to perform several functions that are divided into two primary roles:

Administration

Bookkeeping

Cash register attendant

Gas pump assistance

(Write a short paragraph about the company's founder and why they are positioned for success.)

Hiring Plan

(Manager.FullName) will serve as the store manager. To launch [Owner.Company] , the following personnel will be hired:

The long-term goal of [Owner.Company] is to (primary long-term goal). The following steps will lead to that vision.

(Date): Finalize lease agreement.

(Date): Design and build the gas station.

(Date): (Milestone)

Financial Plan

Break-even analysis, projected profit and loss, projected cash flow, projected balance sheet, business ratios.

​ [Owner.FirstName] [Owner.LastName] ​

Care to rate this template?

Your rating will help others.

Thanks for your rate!

Useful resources

• Featured Templates
• Sales Proposals
• NDA Agreements
• Operating Agreements
• Service Agreements
• Sales Documents
• Marketing Proposals
• Rental and Lease Agreements
• Quote Templates
• Business Proposals
• Agreement Templates
• Purchase Agreements
• Contract Templates

• Resources for Entrepreneurs > How to Start a Business > How Do I Start a Business

How to Start a Propane Gas Refilling Stations Business

How Do I Start a Business

Time to become an entrepreneur? This helpful article on opening a propane gas refilling stations business offers crucial how-to information you just can't find anywhere else.

Thinking about opening a propane gas refilling stations business? We tell you what you need to know to get started.

Tips for Generating a Top Quality Propane Gas Refilling Stations Company Business Plan

A good business plan is the foundation of your entrepreneurial journey. Despite the diversity that exists in business plan writing, there are several essential elements that good business plans simply must include.

If you're unfamiliar with business plan essentials, you may want to think about purchasing business plan software. Robust software solutions incorporate best practices while streamlining the writing process, ensuring that your business plan reflects your company's commitment to quality.

A quick review of Gaebler's business plan software packages article is great place to begin your search for the solution that's right for your propane gas refilling stations business.

Look Over the Competition

Well in advance of opening a propane gas refilling stations business in your town, it's essential to find out how strong the competition is. We've provided the link below to help you generate a list of competitors nearby. Just enter your city, state and zip code to get a list of propane gas refilling stations businesses in your community.

• Search for Propane Gas Refilling Stations Businesses Near You

Is the local market large enough to support another propane gas refilling stations business? If not, you had better be sure that you are doing things much better than the competition.

Talk to People Who Are Already in the Business

After you've evaluated your local competitors, it's essential that you talk to somebody who is already in the business. Local competitors are not going to give you the time of day, mind you. The last thing they want to do is help you to be a better competitor.

But, a person who owns a propane gas refilling stations business in a different city can be a great learning resource for you, after they realize you reside far away from them and won't be stealing their local customers. In that case, the business owner may be more than happy to discuss the industry with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.

Where can you find somebody who runs a propane gas refilling stations business in another city who you can speak with?

We can help. Follow the link below, try a few city/state combos or zipcodes, and then start calling!

• Get In Touch With Propane Gas Refilling Stations Business Owners

Why Buy a Propane Gas Refilling Stations Business?

More than a few experts advise prospective propane gas refilling stations business startup entrepreneurs to pursue an acquisition strategy. But what's so great about a propane gas refilling stations business acquisition?

The availability of acquisition capital should be a major factor in your decision. Commercial lenders are usually more inclined to fund acquisitions than startups.

Although there are a lot of factors to consider, the decision to buy a business to get acquisition capital almost always pays off.

Franchising May Be a Better Way to Go

Your chances of achieving the entrepreneurial goal of being a successful business owner are substantially improved if you go the franchising route and benefit from the prior work of others and their lessons learned.

Prior to making the decision to open a propane gas refilling stations business, a smart move is to investigate whether purchasing a franchise might help you avoid common entrepreneurial mistakes.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

• How to Own a Franchise

Other Useful Articles for Startup Entrepreneurs

These additional resources regarding getting started as an entrepreneur may be of interest to you.

Consideration Before Buying a Franchise

LLC Advantages

How to Find Angel Investors

Share this article

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms Franchise Opportunities Contributors Business Glossary

• Terms of Use
• Privacy Policy
• Franchise Directory
• Entrepreneurial Resources
• Small Business News
• Gaebler France
• Gaebler Mexico
• Gaebler Philippines
• Gaebler Czech Republic
• Gaebler Germany
• Gaebler China

Copyright © 2001-2024. Gaebler Ventures. All rights reserved.

• Sample Business Plans
• Retail, Consumers & E-commerce

Gas Station Business Plan

Although fuel prices are shooting up, we all know that it is one of the most essential commodities there is.

And in the absence of a proper alternative, people are forced to use fuel. If you have the right experience and knowledge about running a gas station, you must have thought of having your own gas station business at least once.

Reading sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample for you to get a good idea about how perfect a gas station business plan should look and what details you will need to include in your stunning business plan.

Industry Overview

In October 2021, the monthly retail fuel sales in the US amounted to a whopping 55 billion dollars, significantly higher than the past month. And although the industry experienced a slowdown due to the pandemic, it is recovering to its pre-pandemic levels at a fast pace.

The major reason for the growth of the fuel industry is increasing scarcity, rising prices, and lack of an alternative mode of conveyance.

And although there might be no impact in the shorter run, gas station owners should keep in mind that alternatives to fuel might come up in the future, and they’ll need to prepare their business for the impact.

It can either be by an exit strategy or by preparing their business to serve those alternative methods of transport.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing Your Gas Station Business Plan

Pick a legal structure for your business.

The legal structure of your business decides the amount you’ll pay in taxes, the amount of paperwork you’ll have to go through, and the liability on your assets. Hence, it is essential to go through all of your options and choose the one that fits the best for your business.

Get the necessary licenses and permits

The next step would be to get all the necessary licenses and permits to operate a gas station. This helps you stay on the right side of the law and avoid unnecessary legal hassles. It also helps you avail yourself of any possible benefits that the permit holders get from the government or private institutions.

Get a gas supplier contract

A gas supplier contract is essential to set up your business. It makes having a proper supply in your gas station easier. It also gives you a chance to go through all the possible options of suppliers for your business and choose the one that can offer you the highest profitability margin.

Select a good location

Location matters more than anything for you as a gas station owner. A gas station located on a highway, around a residential or commercial area has a higher chance to be successful as these are the most convenient places for people who’d want access to a gas station. And depending on your location, you can also decide the additional services your gas station would offer to make it more profitable and a preferred location for your customers.

Chalking out Your Business Plan

If you are planning to start a new gas station, the first thing you will need is a business plan. Use our sample Maxwell – Gas Station Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new gas station business, spend as much time as you can reading through some examples of services-related business plans .

After all, having your business gives you a sense of independence and can turn extremely profitable too.

All you need is a gas station business plan to help you get started the right way.

Gas Station Business Plan Outline

This is the standard gas station business plan outline, which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup cost
• Industry Analysis
• Market Trends
• Market Segmentation
• Advertising Strategy
• Pricing Strategy
• Sales Strategy
• Sales Forecast
• Service Functions
• Administrative Functions
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your gas station business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample gas station business plan

Need help writing your business plan from scratch? Here you go;  download our free gas station business plan pdf  to start.

It’s a modern business plan template specifically designed for your gas station business. Use the example business plan as a guide for writing your own.

Related Posts

Cost to Start a Gas Station

How to Start a Gas Station

Car Dealership Business Plan

Vending Machine Business Plan

400+ Business Plan Examples

Eye-Catching Business Plan Cover Designs

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Our website is coming soon

• Login to your server Control Panel
• Click "Site-builder"
• Choose Template. Edit Website

Want to start LPG gas business? Here's what you need to do

Looking to start LPG cooking gas retail business? Here are a few things you need to know as per the Energy Regulatory Commission (ERC):

1. You need to acquire a business license from the respective county government.

2. You need a certificate of fire - Proof that the retail site has been assessed for fire. This certificate is obtained at the county government offices.

3. Safety assessment report - Proof that the retail site has undertaken a safety assessment by persons registered by Directorate of Occupational Safety and Health Services.

4. Workplace Registration Certificate by Directorate of Occupational Safety and Health Services.

5. Empty or filled gas cylinders should be stored in a well-ventilated area preferable outdoors in a secured cage.

6. Display “No smoking” signs and have fire extinguishers in place which should be serviced regularly.

7. Have a weighing scale that is calibrated/ standardized and in good condition.

8. Filled LPG cylinders should only be sourced from wholesalers licensed by the Energy Regulatory Commission.

9. Obtain a supply agreement with a licensed distributer.

10. Keep records of serial numbers of the cylinder you have received and distribute.

11. Do physical check of the state of the cylinders before distributing e.g check the paint, foot ring, valve.

Thank you for reading my article! You have contributed to my success as a writer. The articles you choose to read on Hivisasa help shape the content we offer. -Sim Ali

Is there information that you would like Kenyans to know? Tell Hivisasa and we will share with the world. Click here to submit.

Murkomen predicts another BBI in 2023

Waititu’s impeachment is a warning to governors opposing Handshake. Not good.

Senior knec officials were involved in exam malpractices — nis report, raila, ruto should go home, kabogo says, pregnant woman shot dead in the us by gunman in passing car, dp ruto advised to organise his own bbi rallies, first coronavirus death outside china reported in the philippines, ledama drums up support for bbi ahead of initiative's maasai chapter, police shoot dead man suspected of stabbing people, i made my money in the 1990s, kabogo explains how he made his wealth, missing technical university of mombasa student found dead, how murkomen stopped anticipated political showdown in mombasa, joho condemns attack on aisha jumwa, mohammed ali, kisip finally rehabilitates migosi's main road, kemsa forced to explain lack of malaria testing kits following hivisasa coverage, how kenya power managed to install concrete electricity poles after hivisasa story, nakuru crowns smirnoff battle of beats season ii winner, bishop mark kariuki takes kisumu by storm, orders locusts to leave, irate residents block kangundo road over cattle theft.

• Skip to main content
• Skip to footer

Additional menu

Vaisus Consulting

Welcome to Vaisus Business Plans

How to write a gas station business plan: Step-by-step guide

posted on 6:23 am

If you want to start a new gas station business, the first thing you will need is a comprehensive gas station business plan. A business plan will give you clarity on what you will need for your business, and the operational requirements. A business plan is also an important tool for acquiring financing from lenders or investors. This post outlines the important sections with a summary of the key points to capture when writing a gas station business plan.

At the end of this post, you can download a complete gas station financial forecast tool with 3-year financial projections including income statement, start-up costs, break-even analysis, and cash flow statement. This template has been used by gas station business owners to plan their business finances and apply for funding from banks and other lending institutions. 

Overview of a Business Plan  

A well-written business plan should include the following sections:

• An executive summary

Introduction

• Business industry and overview
• Marketing strategy and analysis
• Risks and significant opportunities

Location and assets

• Management and human resource

Financial plan and budget

Executive summary  .

Your executive summary should outline how your gas station will provide fuel for motorists and at the same time stand out from competitors. It should be short and precise and appealing enough to capture the attention of your audience. The executive summary motivates the reader to read the entire plan. Its, therefore, important to highlight the key points for each so that the reader can grasp briefly what you intended to put across. Among the important points to articulate are your gas station business objectives, fuel business industry environment, fuel products and services, location, target market, competitive advantage (unique selling point), and the specific gap you will be filling.

This section introduces your gas station business by briefly describing the company profile,  mission, vision, core values, organizational structure, and strategic objectives. The profile gives a brief history of the business, the fuel products and services you will be offering, the location of the gas station, and your projected growth. The vision should include your long-term and short-term goals and how you will achieve them. Also, include the organizational structure, your daily workflow, and other operational activities that will make your business achieve your desired goals.

Business industry and overview 

In this section, you talk about industry trends and the external factors that affect the gas station business, both positively and negatively. Also, state the major players in the gas station with convenience stores business both nationally and your direct local competitors that influence your business. The major players in Canada you may mention include Suncor (Petro-Canada), Imperial Oil Limited (Esso), Shell, 7-Eleven, Superstore (Mobil), Co-op etc. Locally you can mention businesses at most five to ten kilometers from your desired location. Additionally, describe the products and services your gas station will offer, including the grades of gas and types of oil for instance regular gasoline, midgrade gasoline, premium gasoline, diesel fuel, automotive services, etc.

To increase your customer base, you may want to include other complementary products and services such as a convenience store that sells snacks, chips, alcoholic and non-alcoholic beverages, tobacco and lottery products, groceries, souvenirs, mechanical repair service, and automotive services such as car wash. Finally, mention the government and industry policies and regulations, permit requirements i.e. health, safety, and environment. Other than regulations, you can talk about your initiative of innovation and investment in the environment to show your interest in protecting communities, people, and the environment as a whole.

Market strategy and analysis  

A marketing strategy describes your overall game plan for reaching prospective. Talk about the marketing strategies you will use to introduce your gas station to the market and how you plan to attract and retain customers. One thing to note is that marketing in the gas station industry is highly dependent on your supplier’s brand name. Most customers are loyal to specific brands. You therefore have to choose your supplier diligently and brand your station to reflect your supplier’s brand image and standard of service. This way you will benefit from increased business due to their larger marketing efforts and customer loyalty programs, such as rewards programs with grocery stores.

Also, discuss in detail your specific target market list down your direct competitors, and write down a summary of their product/service offering, pricing strategy, target market, strengths, and weaknesses. Mention how you plan to differentiate your gas station from your competitors i.e., by offering in-demand convenience goods, automotive repairs, after-sale services (e.g. windscreen cleaning), your supplier’s brand image, etc. Your unique selling point may focus on your choice of location which can be an area with high traffic with no other existing gas station.

SWOT analysis

In your SWOT analysis, explain how you will maximize on your strengths and take advantage of the business opportunities. Also, indicate how you will minimize your weaknesses and threats. These points can touch on your target market, the location of the gas station, the fuel options, and industry trends. Some of the strengths as a result of industry trends you can mention include low capital requirements, low imports, high revenue per employee, and low product/ service concentration. Weaknesses on the other hand may include high competition and high customer class concentration. You may also want to mention the opportunities presented by the industry such as high revenue growth and high per capita disposable income. Threats majorly facing the industry that you will want to address in your mitigation strategies include the world oil price, which is expected to decrease, heavy regulation of the industry, low demand for fuel due to the pandemic, etc.

Mention where you plan to set up your gas station and indicate why you selected that area. If you have any future growth plans list down the locations, where you plan to open other gas stations. State your equipment and fuel procurement plans indicating where you plan to buy or lease your gas station and convenience store and oil depot solution which are necessary for the operation of the business.

Management and human resources

This section identifies the personnel responsible for the running and management of the business. Here you talk about the founders, team leader, or manager of your business, the entire employee workforce, their roles, and employee benefits. Also, discuss their profiles pointing out how suitable they are for the running of the business.

Insurance for a Gas Station Business

From leaky fuel tanks to burglaries, running a gas station can be a risky endeavor. Insurance will secure the business in the event of unanticipated circumstances. You therefore should state the insurance packages you will be having.

This is the most important section of your business plan to your audience. The investor or lender will want to know how your business is going to perform financially. Prepare financial projections for the next five years to determine the start-up costs of leasing or buying a gas station and making the pumps operational. Your financial documents should show the cost of required licenses, insurance, payroll, interest expense for servicing the loan or return to the investor, utilities, and environmental services. Calculate the revenues you anticipate from the sale of fuel, automotive products, and concessions in your revenue projections

Conclusion  

In summary, a gas station business plan document is a requirement in the business planning process. It enables you to realize your vision and achieve your goals. A well-crafted, comprehensive, and appealing plan for your gas station will enable you to capture all aspects of your business in an enticing manner. You can get in touch with us at Vaisus Consulting to help you prepare an exhaustive, funding-ready gas station business plan that is customized to meet your needs. To speak with one of our consultants,  schedule an appointment  with us.

Barbershop Excel Financial Forecast Template: Financial Projections Calculation | Barbershop Bookkeeping Template | Profit Analysis

Gas Station Financial Template | Gas Station Excel Spreadsheet for Budgeting | Gas Station Excel Financial Forecast Tool

Restaurant Financial Planner Excel Template | Profit Analysis, Budgeting, Financial Management l Restaurant Financial Template

Trucking Company Excel Financial Forecast Template: Financial Projections Calculation Excel Template | Trucking Profit Analysis l Trucking Financial Forecast

Product categories

• Financial Projections
• Small Business - Business Plans

Gas Station Business Plan Template

Gas station executive summary.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of gas station business you are operating and the status; for example, are you a startup, do you have an existing gas station business that you would like to grow, or are you operating a network of gas stations.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the gas station industry. Discuss the type of gas station you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

GAS STATION BUSINESS PLAN OUTLINE

• Gas Station Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Gas Station Business Plan Summary

Start Your Gas Station Plan Here

Other Helpful Business Plan Articles & Templates

06 May 2021

Starting a Liquified Petroleum Gas (LPG) Business in Nigeria

Introduction

The number of Nigerians who use cooking gas for various domestic cooking purposes are increasing daily. Women/mothers are gradually shifting focus from the use of kerosene stoves to the use of gas cooker or cooking gas. That will help decrease the problems of deforestation and help conserve our natural forests and prevent potential disasters that is inherent with desert encroachment such as erosion.

The increasing use of cooking gas to cook by Nigerians helps keep the environment cleaner as the waste diffused into the air from the use of firewood is being eliminated. Apart from the environmental benefits, the increase in the number of people using cooking gas especially in urban areas has created good business opportunity for smart entrepreneurs who can now trade on cooking gas and cooking gas equipment to make good profits.

Nigeria currently has a few gas projects, especially the $2.8 billion Ajaokuta, Kaduna, Kano pipeline and the Nigeria LNG Limited train seven, however, most gas projects in the country are supported by the Federal Government instead of a private sector led industry.

There are a lot of moderately sized LPG filling plants across the country. Nigeria has about 350 of these across the country (within 50 MT – 100 MT storage capacity). From NLNG to coastal storage depots, it goes via trucks to the LPG inland storage depots and LPG filling plants and from there it goes to the secondary distributors (cylinder sellers who take from the filling plants), who then distributes to the end users and maybe to tertiary distributors

Types of Distributors in LPG Business

There are two types of distributors in LPG Business, they are:

Primary Distributor

The filling plants are primary distributors

Secondary Distributor

The secondary distributors are supplied gas and cylinders by the primary distributors (filling plants). The secondary distributors fill a thousand cylinders or thereabout and distribute directly to end users. There is a new set of secondary distributors in Nigeria (these guys are the second type) – they own filling plants of their own which are mini plants, these are 1 MT – 5 MT storage capacity which are typically installed in gas stations. So they normally buy in bulk from primary distributors (the filling plants) about 1 -2 MT using bobtail trucks which they in turn fuel to end users from gas stations.

Profitabilty of Liquified Petroleum Gas (LPG) Business

Cooking gas business is very profitable and you don’t have to break the bank before you can start. With N300,000, you will get your business setup and ready to go with almost everything necessary in place. And this is a big business that anyone who is into it can be proud of.

LPG Properties and Composition

Cooking gas can be measured in litres, kilogrammes and tonnes. 1 kilogramme is equivalent to 1.75 litres and 1 metric tonne is equivalent to 1000 kilogrammes. So 1 metric tone is equivalent to 1,750 litres. Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg. Also some intermediate sizes could be manufactured based on specific orders.

How to start a LPG Business

Before starting a Liquified Petroleum Gas business one needs to put some things in place and get some documents. The time it takes to set up Liquified Petroleum Gas plants differs, it could take about 2 years depending on the approval process.

The approval process for LPG business involves the following:

town planning approval

Environmental Impact Assessment (E.I.A.) of the site. The EIA must be conducted for both dry and rainy seasons

Getting a fire department approval

Getting a police report

Commencing full engineering, design & procurement assessment

The above mentioned documents would be submitted to the Department of Petroleum Resources (DPR), along with a written application. On receipt of the application, DPR will visit the site to be sure all requirements for the construction of an LPG plant has been fulfilled. Where all these requirements are met by the site, DPR will approve and issue you an Approval to Construct (ATC). This approval grants the owner the permission to start constructing a LPG plant on the identified site.

Equipment acquisition

After getting approval, one can then go ahead to acquire equipment for the liquefied petroleum gas business.

Site construction

Once the equipment has been acquired, the site construction can commence.

The Department of Petroleum Resources (DPR) will visit the site once construction is complete for inspection and certify the design is consistent with proposed plans submitted. They will also witness and sign off on all integrity tests conducted at the plant; following which an operating license will be issued. The process takes about 2 years or more end-to-end. The integrity of the plant itself is a function of the competency and technical capability of both the client and the contractor.

The requirements enumerated above do not preclude foreign investors. It’s a standard operating procedure for both local and foreign investors. For investors, it is imperative they partner with local experts with good industry knowledge, technical knowhow and experience; and who is also versatile with the relevant stakeholders.

Factors to Consider before Starting a LPG Business

Startup Capital – Before starting a LPG business, one must consider the startup capital required for that business. According to experts (people who are already in the business) with a capital of ₦300,000 you can conveniently start one and be able to buy more than 20 cylinders, rent a shop, and buy the initial products. The location however determines the cost of the shop. Locating your business in a highbrow area will cost you more money when compared to a location in a lowbrow area but the cost will be well worth it.

Training – It is important to get attached to any experienced retailers or even depots for about six months to learn the important rudiments of the LPG business. You need to learn how to refill the cylinder, how to transfer, how to change valve. And everything necessary that you must know about the business. You also need to know where and how to buy cylinders.

If you decides to learn in a smart way, you can learn from any of those retailers you see by the roadsides and if you are smart enough, you can get all the knowledge you need there. In anyway, it may take you as much as six months to complete your apprenticeship.

Rent a Shop – The next thing after training is completed and the required knowledge acquired is to go get a shop. The class of people that use cylinder gas cooker are more in the urban area. Almost every part of Lagos is good for the business but some places are better than the others.

Marketing – It is of high importance to employ appropriate marketing strategy to create awareness of your business to people and also to increase your profitability and stay afloat. A business that refuses to engage marketing strategies is doomed for failure and can fold up in no time. It is good to maintain good relationship with customers and show empathy to their needs. Know your customers and find how best to deal with each customers. It’s not just about making sales (one-off sales) but about ensuring “repeat purchases” where the customers comes back after the first time to buy and continues coming back to buy from you. This is what guarantees a business of continuous existence in perpetuity (all other things being equal).

Pricing – As much as possible, offer the lowest of prices. Do not run at a loss or add a high profit margin. Consumers seek to minimize cost as much as possible and would buy from the shop with the lower price. If your prices are too high, customers will run from you. Don’t be too greedy for gain

Competition – After the business has been set up and is running, it is necessary to keep taps on your competitors. Study their moves, and strategize on how to do better than them.

Health and Safety Precautions in LPG Business

The most important health and safety issue in the operations of LPG is the operators – these are the people operating the filling plant. Qualified gas operators are scarce to a large extent in Nigeria to run an LPG plant. Hence, staff hired have little to no training or experience in running an LPG plant. One can decide to have a series of trainings both formal and informal, both on the job and off the job, to ensure our operators are at their best – it really is safer to run a poorly constructed LPG facility with competent operators than to run a properly constructed LPG facility with incompetent operators. The operators come first and are the most important factors even before the facility itself. So just to summarise, the highest significance where safety is concerned are the operators, adequate training and then the quality/ standard of the facilities.

Precautions to be taken when handling a Gas Cylinder.

It is important for one to be very careful when handling gas as it is highly inflammable. The following precautions should be taken when handling gas cylinder:

Gas cylinders should always be placed in a vertical position, unless stated otherwise by the manufacturer.

Cylinders should be restrained securely to prevent them from falling over.

Ensure that the cylinder valves are always tightly closed.

Ensure that the valve is protected by a valve cap to prevent any damage if the cylinder is dropped.

When loading or unloading the cylinders, never drag, drop or roll the cylinder as these can cause major physical damages to the cylinders.

Ensure that the cylinders are always kept in a well-ventilated warehouse with regards to the manufacturer’s ambient temperature standard.

Ensure that the cylinders are always placed on wooden pallet and not on a bare floor.

Prevent direct physical contact among cylinders in storage.

Why one should not be scared to Owning a LPG Business

Pressure vessels (including LPG tanks) are designed and built to sustain their physical integrity under the elements of nature (rain, sunshine etc). People are often discouraged to own and operate LPG skid plants mostly due to the explosive nature of the gas which might be perceived as a threat to lives and properties. However, there are cogent and verifiable reasons why these concerns should not discourage you from owning and operating an LPG skid plant in any location of your choice.

1. Before an LPG skid plant can be sited and installed in a given location, Department of Petroleum Resources (DPR) must carry out a proper Environmental Impact Assessment (EIA) in accordance with the international best standard, followed by calibration test, pressure test and facility integrity test to ascertain the safety compliance limit of the LPG infrastructure. A DPR certificate is issued once all the necessary standards are met.

2. An LPG skid plant comes with a Pressure Relief Valve (PRV) which serves as a vent for built-up pressure. Under a high external temperature (due to a nearby fire incident for instance), the Pressure Relief Valve (PRV) releases the excess pressure fast to prevent the rupturing of the vessel (tank or cylinder).

3. An LPG skid plant has a wall thickness of about 15cm. This serves as a fire and pressure resistance, preventing the rupturing of the vessel (tank and cylinder) under a high and prolonged fire incidence.

4. In accordance with international best standard, an LPG skid plant is filled up to about 85% capacity in order to provide enough space for the thermal expansion of the contained gas when the surrounding temperature increases.

In light of the above, investment in the growing LPG market is the most prudent decision anyone can make, especially as the LPG market in Nigeria is worth over #37 billion annually with about 50% return on investment.

Risks Associated With Running an LPG Business

Having an operator

The biggest risk one would face when running a LPG business is the risk of having an operator who is not knowledgeable enough. Therefore it is of high necessity and importance to conduct initial and ongoing trainings of staff to ensure one has the right operators. Adequate training and competence in plant operations can be said to be the single most important safety factor.

Fire explosion

The highly inflammable nature of liquefied natural gas makes fire explosion a very common risk in the LPG business. However, this risk can be mitigated or even avoided by being at high alert at all times to quickly detect leakages in gas cylinders as these are the major cause of explosion. One also needs to buy good fire extinguisher that can be very handy in time of minor fire outbreak.

Government regulation

Government regulation is another risk in the LPG business. Government is not stable and their regulations and policies are subject to changes in future. Should government decide to increase the price of LPG today, some consumers may find it difficult to take and have to go back to using kerosene or firewood. If that happens, you loose some customers and your sales will drop. However, government is always trying to reduce the price of cooking gas in other to encourage the usage and discourage deforestation.

Government Policies and Incentives on LPG Business

The Federal Government of Nigeria recently declared her intention to inject up to 10 million gas cylinders into the market to help improve safety and deepen cooking gas utilization. The cylinder injection will start under the first phase in 11 pilot states and FCT, with two states from each of the geopolitical zones. The states are Lagos, Ogun, Bauchi, Gombe, Katsina, Sokoto, Delta, Bayelsa, Ebonyi, Enugu, Niger and the Federal Capital Territory. The cylinders will be injected through the marketers. The marketers will be responsible for the cylinders and the exchange will take place in homes and not in filling stations.

The implication of this is that going forward, individuals will no longer own cylinders but cylinders will be owned by the marketers who will ensure that they are safe for usage. This will better guarantee the safety of the users of gas and the society at large. Hence, an opportunity is created for smart entrepreneurs to venture into LPG business as marketers.

The government not only seeks to promote household consumption of LPG gas but to increase LPG usage in agriculture, transportation and manufacturing in order enable the country to reduce CO2 emission by about 20% and create millions of jobs for Nigerians.

The government was targeting the conversion of 45% of about 4 million vehicles in the state to autogas over a four-year period in partnership with marketers.

The government at different levels are pursuing cleaner energy sources for cooking, transportation and power generation.

The Federal Government is working towards opening micro gas distribution channels across all local governments areas in the country.

By Taiwo Olowu, ACA

To learn more how we can help you achieve your vision on starting a business like this, please reach us now on 08023200801, email [email protected] or send us a detailed request by completing our enquiry form

Facebook Comments

Related posts:.

2 thoughts on “Starting a Liquified Petroleum Gas (LPG) Business in Nigeria”

Please, I want to know more about setting up small size cooking gas plant in Nigeria, especially budgetary estimates including securing regulatory approvals.

Please call 08023200801

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Matthew Ogagavworia & Co is a Professional Services firm that helps clients in Audit, Tax and advisory.

We use a holistic, science-based approach combining , numeracy, training, consulting, coaching, and diagnostics to help you get the results you want.

• Company History
• Leadership Team
• Partners / Clients

Error validating access token: Sessions for the user are not allowed because the user is not a confirmed user.

Gas Station Business Plan Template & Guidebook

Starting a gas station business can seem like an intimidating journey, but with the right template and guidance, anyone can become a successful business owner. Get the ultimate #1 Gas Station Business Plan Template & Guidebook to help you understand the process and create a plan that will get you on the road to success.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Gas Station Business [11 Steps]
• 25 Catchy Gas Station Business Names:
• List of the Best Marketing Ideas For Your Gas Station Business:

How to Write a Gas Station Business Plan in 7 Steps:

1. describe the purpose of your gas station business..

The first step to writing your business plan is to describe the purpose of your gas station business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a gas station business:

The mission of XYZ Gas Station is to provide a reliable, friendly and convenient fuel source for our customers in the local community, while ensuring safe and secure transactions, competitive prices and a variety of product offerings.

2. Products & Services Offered by Your Gas Station Business.

The next step is to outline your products and services for your gas station business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your gas station business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your gas station business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your gas station business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a gas station business?

• Gasoline Dispening System
• Payment Processing System
• Computers, Cash Registers and/or Point of Sale (POS) System
• Security Cameras and Related Equipment
• Air and Water Dispensers
• Advertising Signage
• Fuel Storage Tanks and Related Equipment
• Fuel Delivery Truck and Accessories
• Permits for Storage, Dispensing, and Selling of Gasoline/Petroleum Products from Local or State Government Authorities.

5. Management & Organization of Your Gas Station Business.

The second part of your gas station business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your gas station business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Gas Station Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a gas station business varies based on many different variables, but below are a few different types of startup costs for a gas station business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your gas station business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your gas station business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your gas station business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Gas Station Business Plans:

Why do you need a business plan for a gas station business.

A business plan is necessary when starting any type of business, including a gas station. A business plan helps to define the scope and objectives of the venture, identify target markets, set detailed financial goals, and create a roadmap for achieving those goals. Additionally, a business plan serves as a valuable tool for seeking capital from potential investors or lenders.

Who should you ask for help with your gas station business plan?

You should start by consulting a business adviser, accountant or small business specialist to get expert advice on how to create an effective business plan. You may also want to seek the advice of people in the industry who are familiar with the gas station business. They can provide insights into successful strategies and best practices.

Can you write a gas station business plan yourself?

Yes, it is possible to write a business plan for a gas station yourself. However, it can be quite a complex and time-consuming process. It is recommended to consult with experts who specialize in the subject and have experience in business plan writing. An expert can work with you to identify the key elements of your business plan, develop strategies, and complete the necessary financial projections. Additionally, they can provide guidance on any relevant regulations or requirements that may apply in your area.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Hardware Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

LPG Business Review

Weather forecast, operating and setting up an lpg plant in nigeria: an interview with teryima denen toryila.

Tell us about your journey towards the LPG industry.

After the compulsory 1 year of national service, I began my career in the telecommunications industry with Celtel Nigeria, where I was involved in the coordination and supervision of retail activation programs as well as the sales and distribution of SIM cards. I moved to the air conditioning industry as a HVAC engineer for Technoton Limited where I was involved in a lot of engineering projects and gained increased knowledge on gases. Thereafter I moved to Banner Energy, where I worked as an Engineer on its LPG projects.

I joined Oando Marketing, one of Nigeria’s leading indigenous downstream companies (now known as OVH Energy Marketing) as an LPG Development Officer tasked to provide market intelligence and develop new business channels for its LPG sales. Having made significant impact in the business, I transitioned to becoming the LPG Technical and Operations Supervisor where I coordinate LPG plant projects, oversee plant operations, and monitor strict adherence to health and safety practices across the company’s 18 LPG plants nationwide.

What is your most notable experience/achievement?

I have had several notable accomplishments in my career; probably my most notable achievement was my first LPG engineering project when I had to install 10 LPG plants comprising entirely new systems (that I had little or no clue about), new (first of its kind) in Nigeria at that time. I had approximately 2 days to prepare before mobilizing to site, so I spent that entire time studying the systems and manuals amidst high expectations from my employer to deliver on the project within very close time lines. I successfully delivered on the project and have gone on to deliver on over 20 LPG projects since then.

Setting up an LPG Plant:

What is the timeline for setting up an LPG filling plant in Nige ria? (From the planning phase to operation)

The timeline for setting up LPG plants differs; it typically takes about 2 years depending on the approval process. Let me walk you through the approval process for better understanding. One needs to go through town planning approval, followed by an Environmental Impact Assessment (E.I.A.) of the site. Nigeria typically has 2 seasons in a year – the wet (rainy) season and the dry season; the EIA must be conducted for both seasons. Then you get a fire department approval, acquire a police report, and commence full engineering, design & procurement assessment which will be submitted to the Department of Petroleum Resources (DPR), along with a written application and all documents mentioned earlier. DPR will visit the site to be sure it fulfils all requirements for the construction of an LPG plant. Should the site meet these requirements, DPR will approve and issue you an Approval to Construct (ATC).

Once approval is given, you can then commence the equipment acquisition and site construction. The Department of Petroleum Resources (DPR) will visit the site once construction is complete for inspection and certify the design is consistent with proposed plans submitted. They will also witness and sign off on all integrity tests conducted at the plant; following which an operating license will be issued. The process takes about 2 years or more end-to-end. The integrity of the plant itself is a function of the competency and technical capability of both the client and the contractor.

The requirements enumerated above do not preclude foreign investors. It’s a standard operating procedure for both local and foreign investors. For investors, it is imperative they partner with local experts with good industry knowledge, technical knowhow and experience; and who is also versatile with the relevant stakeholders.

What does it cost to set up an LPG plant in Nigeria? The standard/ stipulated fees vary depending on the size of the facility amongst other sundry expenses. A breakdown of the estimated costs would be:

• Town Planning Approval : N200,000 (USD656.28)
• Fire Service Approval: N100,000 (USD328.14)
• Police Report: N50,000 (USD164.07)
• Environmental Impact Assessment (need to engage a consultant, depends on consultant and must be a ministry of environment certified consultant – function of location – this could typically cost you (N2 – N5 million) (USD6562 – USD16407)
• DPR Approval: N20,000 per 100MT capacity (e.g. 200 MT – 40 thousand Naira) (USD131.26) All in all, without the environmental impact assessment, it will cost roughly around half a million Naira for all the approvals. When looking at construction costs, the major expense comes from equipment which are imported from Europe and America, but in more recent years, a large amount comes in from Asia and this would cost something in the neighbourhood of about N250 million (USD820,347 )for everything.

What does the LPG distribution network in Nigeria look like? (Where does the plant get its gas from and how is it distributed from there) How do Secondary Distribution Points fit into the mix?

Nigeria is one of the largest producers of LPG in Africa. The NLNG plant on Bonny Island produces significant amount of LPG but was designed primarily for exports. It was expected that the local refineries would meet local demand but unfortunately, that is not the case. So, this means the NLNG plant is required to provide for local demand as well. (The NLNG plant is located off the coast of Port Harcourt Nigeria with most storage facilities in Lagos).

Currently Nigeria has an 8000 MT and 4000 MT storage (the 4000 MT has recently been expanded to 9000 MT), another 1000 MT and 4000 MT which would make it all in all about 25000 MT worth of LPG storage capacity in Lagos. Recently another 10,000 MT storage facility was completed in December 2016 in Calabar. There is also another 8,000 MT facility on verge of completion at Port Harcourt. Most of these storage facilities are coastal storage facilities, so when the vessel brings the LPG from NLNG facility, they are docked in Lagos and then from Lagos it discharges the LPG into these facilities, which are then loaded onto road tanker trucks which distribute the gas across the country.

We are thinking that the dynamics should change within a year or so with new coastal facilities that will come online in Calabar and Port Harcourt, hopefully, they will be receiving more vessels in the other parts of the country as well.

In-country distribution via the road network in Nigeria is not so ‘beautiful’, it’s not like you have in Europe and America, it’s a different terrain. Most of the LPG distributed must go by road and it is a real challenge. We have a lot of inland storage facilities in Nigeria, most of them are of 1000 MT storage capacity and not connected by pipeline. So, if you needed to move a 1000 MT from the coastal storage depots to the inland storage depots that would take about 50 trucks to fill it up. It would have been a lot easier if we had them linked up by pipeline.

There are a lot of moderately sized LPG filling plants across the country. Nigeria has about 350 of these across the country (within 50 MT – 100 MT storage capacity). From NLNG to coastal storage depots, it goes via trucks to the LPG inland storage depots and LPG filling plants and from there it goes to the secondary distributors (cylinder sellers who take from the filling plants), who then distributes to the end users and maybe to tertiary distributors.

So for the filling plants, are these all secondary distribution points? Do they do their own filling and distribution to the retailers?

Actually I would say that we have 2 kinds of secondary distribution and with regards to the filling plants, I would call them primary distributors and not secondary distributors. The filling plants are the ones who supply the secondary distributors with gas for their cylinders. The secondary distributors fill a thousand cylinders or thereabout and distribute directly to end users. There is a new set of secondary distributors in Nigeria (these guys are the second type) – they own filling plants of their own which are mini plants, these are 1 MT – 5 MT storage capacity which are typically installed in gas stations. So they normally buy in bulk from primary distributors (the filling plants) about 1 -2 MT using bobtail trucks which they in turn fuel to end users from gas stations.

The primary distributors (the gas plants themselves) also distribute to end users. So for me, if my cylinder is empty, I can take it, drive to any filling plant, walk into it, pay for the gas and get the cylinder filled – there is not much restriction in Nigeria. So you can go to a primary distributor and buy it directly from him or could give a call to a secondary distributor who would bring the gas to your home or you could even bring the cylinder to the nearest gas station where you fuel your car and buy from the new kind of secondary distributor who is filling from a small skid plant or mini plant.

What is the current penetration of filling plants across the country? Is there still much room for growth?

Well… Nigeria is on the verge of an explosive growth of the LPG industry. I don’t think there is any market in the world that has the kind of potential like you have in Nigeria. The market is thirsty for serious investment and investments are coming in gradually. Over the past year, we’ve had about 15,000 MT of new storage capacities. The per capita consumption in Nigeria is among the lowest in West Africa.

Nigeria has a population of about 170 million people according to the latest estimates and LPG penetration is only about 5%. The figures for LPG use in Nigeria in 2015 only stood at about 400,000 MT for a population of 170 million people – this is merely a scratch for a population that size. Nigeria has potential for LPG industry to 5 million MT per annum, so we are doing less than 10% of what we could be doing. So really, there is a lot of potential and room for investment. It seems to be much more saturated in places like Lagos which is a cosmopolitan city where literacy and education is high. Typically, the average person in Lagos uses LPG daily but you also have to consider looking at the rural parts of Nigeria which is completely not supplied with LPG. So, if anybody looks at that, the potential its really, really, huge, I repeat, I don’t think there is anywhere in the world that has the kind of potential for LPG goods and i nvestment like Nigeria.

Operating an LPG Plant

What are the most important health and safety issues that need to be monitored during operation of an LPG filling plant?

I think for me, from my experience, the most important part of the operations, is the operators – the people operating the filling plant. There is really, to a large extent a scarcity of qualified personnel available in Nigeria to run an LPG plant. So typically when you are hiring staff, they have little to no training or experience in running an LPG plant. So the biggest risk you face, is having an operator who is not knowledgeable enough. The need to conduct initial and ongoing trainings cannot be over emphasized to ensure one has the right operators. In my opinion, the highest risk involved and the single most important safety factor is adequate training and competence in plant operations.

For our operations we make sure that we have a series of trainings both formal and informal, both on the job and off the job, to ensure our operators are at their best – it really is safer to run a poorly constructed LPG facility with competent operators than to run a properly constructed LPG facility with incompetent operators. The operators come first and are the most important factors even before the facility itself. So just to summarise, the highest significance where safety is concerned are the operators, adequate training and then the quality/ standard of the facilities.

What sort of operation costs are involved in running an LPG plant? Would you be able to give a ballpark figure/ rough estimate of the monthly costs involved in operating a plant?

After staff costs, the most expensive part of operation is power. In Nigeria, we don’t have good public power supply so you would spend about 20 – 30% of your total cost on power which must be run on diesel – these are stand-alone generators running the plant. Let me give you an example, we have a 100 MT LPG facility that fuels about 15 MT a day. To operate the plant, we have about 14 staff members – 8 operate filling machines and the sorting / carrying cylinders, a plant manager and admin staff and about 2 security officers. The average cost of manpower is about 1.2 million Naira (USD 3937) per month.

Without staff cost, we would spend about N180,000 (USD590.65) for diesel (power), N120,000 (USD393.77) for diesel cost, N60,000 (USD196.88) public power cost (which is not reliable). LPG equipment rarely breaks down if you perform your regular maintenance, daily checks, monthly checks, and quarterly checks and with that we rarely need to buy spares, we don’t spend much on spares. So typically, it’s just the cost of servicing equipment and the generator which will amount to about N200,000 (USD656.28) in a month. Other costs would include a supply of consumables, seals, etc. – typically for a plant in Nigeria – the turnover would be about 250 MT in a month and spend about 2 million naira a month and which about N1.2 million (USD3937) goes to Staff cost. All in all, it costs about N2 million (USD6562) to fill out about 250 MT of LPG every month.

Why is diesel used for power and not LPG itself?

LPG can be used, it just has not been explored. Typically, a lot of industries in Nigeria are all powered by diesel, even our homes and our offices. Diesel is readily available. You could say an LPG generator could be easily installed and piped from your main storage to a smaller storage to supply an LPG generator but unfortunately there are not many LPG generators in the country now, they are only just starting to come in. The thing is most of these types of generators have been designed for propane and not for butane which is what is generally used in Nigeria. I am sure though that as the market grows, we may be able to explore butane powered generators and engage more manufacturers who might be able to provide butane powered generators. A big part of it, is also due to cost – the cost of diesel, slightly cheaper than cost of LPG. It might be cheaper to run on diesel than LPG.

Moving Forward

What needs to be done to improve the overall LPG  distribution network and growth of the LPG industry in  Nigeria?

Infrastructure – we need infrastructure across the LPG value chain. I’ll give you an example of the typical way things work in Lagos. When an LPG vessel comes into Nigeria, we only have one LPG facility with a dedicated jetty in Lagos. All other facilities (about 5 of them) are connected to a major jetty that also receives other petroleum products. Most petroleum products imported into Nigeria (other than LPG) have a higher demand than LPG, so preference is given to petrol, aviation fuel, diesel and then LPG. So, you may have an LPG bearing vessel having to wait for several days.

Jetty expansions would help facilitate demand for LPG in the country. Facilities outside Lagos could also go a long way in improving access to LPG. Also, the transition of LPG from coastal storage depots to inland storage depots which is done typically by road (which are not in good condition) forestall the distribution process. Perhaps we could consider using rail or most preferably link the inland storage depots via pipeline – it would help the supply of LPG in Nigeria. .

Most importantly, cylinders – the typical Nigerian is not able to afford the initial cost of cylinders. Investing in the provision of LPG cylinders especially for rural communities will aid the growth of LPG use in Nigeria. I think that if we take from the lesson learned from India, Indonesia, Brazil and all countries that have grown their LPG industries significantly, you will realize that the governments of these countries made significant investment in providing this infrastructure. If we can have half that level of commitment and investment from the government, I am sure Nigeria can very easily grow their LPG industry by more than a 1000% over the next 5 – 6 years. I am so confident about that because of the amount of potential we have in this country.

Despite the multi-faceted challenges in Nigeria’s LPG industry, this sector will thrive following proper assistance from the government, tactical strategies, and operational efficiencies as it’s a cleaner, healthier and more affordable energy source.

The views expressed in this publication are solely mine and does not represent the position of my employer .

(LPG Business Review)

Teryima Denen Toryila

• Share this Post:

Leave a reply Cancel

Your comment (required):

Name (required):

Email (required):

LATEST ISSUE

Previous issues, twitter update, feature event, upcoming event.

• Federal Government Through The Department of Petroleum Resources Has Plans To Ensure That There is Deep Penetration of LPG in All The Rural Communities of Nigeria
• NLNG Supplied 275,000MT of Liquefied Petroleum Gas (LPG) To The Domestic Market in 2019
• LPG Penetration Will Increase From The Current 7.5 Million Cylinders To 10 Million Cylinders Yearly
• Dacia Has Introduced an LPG Option In The UK
• A 27 Million Dollar Opportunity in Nigeria