How Much It Cost To Build A Petrol Station In Uganda
A petrol station is an establishment beside a road selling fuel for motor vehicles.
How Much It Cost To Build A Petrol Station In Uganda
Oil and gas is on a high demand in Uganda, this is due to the rapid increase in the number of vehicles, high population growth, rapid development of cities like Kampala, Mbarara, Gulu, Lira, Fort portal, Masaka, Hoima and many others.
So there is still need for construction of new petrol stations in different parts of Uganda.
The average cost of starting a Petrol station in Uganda is 500,000,000 Ugandan shillings.
The 500 million Ugandan shillings is just an average cost, the cost can be greater or lesser depending on a number of factors.
There are several factors that determine the cost of construction of a petrol station business in Uganda
The reality is that some of the factors may or may not apply to you, because the business model and the kind of business a person wants to build would also affect the overall cost of the business.
The factors that determine the cost of petrol station construction in Uganda include;
Petrol stations can be constructed in different parts of Uganda ie. Central, Northern, Eastern or western region. In all these regions there is still potential need for service stations or petrol stations.
Petrol station business works well in areas along the main road where vehicles are entering or leaving the city, town or urban area.
Most of the petrol stations a constructed on main roads but there are these roads which connect to the main roads, they are often under looked but they also have good potential for construction of petrol stations.
Look for a location with the target market. Urban places, near town centers, and trading centers are some of the best places to start petrol station business.
This land may be rented, bought or lazed; this depends on one’s capital.
2. The land level to the road level.
The site where the land level is above the road level, has to be leveled to flash with the road. The site where land level is below the road level has to be filled with murram soil to level with the road.
This eases the entry of vehicles before and after taking fuel. When the entrance and exit are not well leveled vehicles will find difficulty to come at your station mostly the heavy and loaded trucks.
Heavy and loaded trucks will not take fuel from your station because it is difficult and dangerous for them to enter and leave the station.
I believe you shouldn’t miss out on these heavy trucks because they take a lot of fuel. Fuel taken by one heavy truck may be equivalent to that taken by five small vehicles.
The process of levelling the site takes money in Petrol station construction hence has to be put in consideration.
3. Acquiring licenses.
For a petrol station to be constructed and operated in Uganda has to acquire all the necessary licenses and these include;
- Licenses from the ministry of Health.
- Licenses from the fire Department. This ensures the safety of employees at the petrol station and the consumers’ safety, mostly businesses that deal with food.
- Register your petrol station name with Uganda Registration Service Bureau (URSB)
- Register with the local authorities to get a trading license or operating permits, reach out to the town council or municipal or city council depending on your location. ministry of local government
- Register with Uganda Revenue Authority for tax purposes. You will be given a Tax Identification Number (TIN) that will be like your account number.
- The process of acquiring licenses usually takes time so it is advisable to proceed with other steps below when working on the licenses to save time.
Still you go through the processes of obtaining permits with aid of the contracted company to help you out.
if You contract us (KK Petroleum Solutions) we shall help you out smoothly through the all process
4. Buildings to be built at the petrol station.
This depends on client options, some clients usually need a supermarket, service bay, offices, restaurant and some even build flats at a petrol station. This leads to a serious increase in the cost of construction of a petrol station.
So when planning for buildings you need at a petrol station yo have to consider the capital you have.
- Size of land.
The size of land also affects the cost of construction of a petrol station. Most stations are constructed on a plot of 100 feet by 100 feet. Some clients provide land which is twice bigger than that. This leads to an increase in the costs of construction of a petrol station.
We a petrol station is constructed on a big plot of land also boosts sales because it provides enough parking for vehicles ie. for customers using the service bay, restaurant, supermarket and many services at a station. It also enables large trucks to easily turn before after fueling. So you should consider a large plot of land for higher sales.
The standard plot of land for petrol station construction in Uganda is 100 feet by 100 feet (100 X 100) feet, In meters it is 30.5 meters by 30.5 meters but it may vary in dimensions
- Size and number of Fuel Tanks to be installed.
The bigger the size of fuel tanks the higher the cost.
An average station uses two fuel tanks of 20,000 liters, one for Diesel and the other for Petrol, though sometimes we prefer making that of Petrol bigger. This is because in most parts of Uganda the consumption of Petrol is higher than diesel. Petrol is consumed by private vehicles and motorcycles which are on a rapid increase in Uganda.
Also, some clients install fuel Tanks which are more than two, this enables them to have enough fuel stock hence avoiding fuel shortages
- Number of Fuel pumps and dispensers to be installed
An average petrol station uses two fuel pumps. Other stations have more than 10 fuel pumps.
The brands of fuel pumps and dispensers. Different brands of fuel pumps cost differently; some are expensive than others.
This leads to an increase in the overall cost of starting up a petrol station
- Size and Quality of Petrol station Canopy/Shade
When constructing a petrol station, the size of canopy has to be considered depending on the fuel pumps to be installed, the design of a forecourt and the capital available.
A big and nice canopy costs much compared to a small one but makes the petrol station to look nice and attractive to customers.
Consider a canopy of high quality with strong steel structures which is durable, though it is expensive to one with less strong structures
7.Location of Site
In Uganda construction materials cost differently depending on your location. For example, bricks are more expensive in Kampala as compared to Mbarara, Fort portal, Hoima, Kasese etc.
So, the cost of construction a petrol station in different parts of the country may differ.
For more information about petrol station startup and construction reach out to KK Petroleum Solutions. KK Petroleum Solution is the leading Petrol station construction company in Uganda