Cooking gas is becoming an increasingly popular fuel for cooking. This is not difficult to see why.
Liquified Petroleum Gas (LPG) is environmental-friendly, much cheaper and cooks meal faster. The market for this product is growing by the minute as even rural areas are shifting from using kerosene and firewood.
Cooking gas business is a viable business as evident on every street corner. Often times I wonder how they make their profit seeing the intense competition. The good news remains as more homes embrace this fuel, more customers arise.
Estimates for starting a mid-size cooking gas business is about ₦400,000-₦500,000. Though setting up shop in highbrow areas may involve higher rent. Also, you must have the basic skills needed for the business such as how to fill gas, how to change valves etc. These skills are gotten by learning from someone in the business. A month should be okay to get the basics but a period of 3-6months is better.
What you need to start
To start cooking gas business you will need the following;
- Gas cylinders (preferably, 12.5kg, about 20 pieces)
- Long hose
- Regulator (gas corks, 3-4 pieces)
- Industrial scale
Most homes use the 12.5kg gas cylinder so it is better to get this variant first. You may, however, choose to buy one or two bigger-sized gas cylinders. An industrial scale is used to weigh the gas after filling. Having one is optional but it is sure to draw customers when they can see they are getting exactly what they are paying for. I once had a gas supplier that undersupplied the needed weight of gas. We noticed the gas was finishing faster and confronted him to either deliver well or we stopped buying from him. He changed. Having an industrial scale puts integrity in your cooking gas business. Even when customers are not there, make sure to deliver the weight paid for. Honest business still pays.
A 12.5kg cylinder is sold between ₦6,000-₦12,000 depending on the quality and previous usage.
Cooking gas plants are more like wholesalers of cooking gas, while your business is the retail end. It is from cooking gas plants you buy in bulk and sell to customers. It is important to have your store close to a cooking gas plant. This is to save money on transportation. Spending as low as ₦150 to transport a cylinder will help you save money and give more competitive pricing to customers.
Also, consider cheaper means of transportation where available.
Location and marketing
Your cooking gas business should be in a good location, easily accessible to customers. Marketing for this business is mainly through word of mouth. Visit homes, families and friends in your vicinity to tell them about your service. Offer to give sell at cheaper price than the competition if you can. You can also type and print small flyers and share.
As you grow in the business you will have some customer’s phone numbers. Send them goodwill messages during celebration periods. These little acts may just be what knocks the competition off.
Consider home deliveries
One way to stand out in this business is to do home deliveries. We all like comfort and can even pay extra to get it. These days, cooking gas suppliers are doing home deliveries at no extra cost. The guy who sells gas in my area sometimes carries it on his shoulders for deliveries close by. This may be stressful physically but it serves his business.
The other day, I saw a branded bus supplying cooking gas. The bus was painted with the brand name and contact information of the business. There are cheaper alternatives to supply gas. One example is using a bicycle. Our previous gas supplier had a bicycle. He made sure to properly tie the gas to the bicycle to avoid it falling off.
Safety and other best practices
Perhaps the biggest danger in cooking gas business is the flammability of the product. Safety measures should be employed to reduce the possibility of fire explosions. Be quick to detect and stop any gas leakage. Where you refill gas should be as far as possible from any fire source. Smoking, bush burning, waste burning should be avoided in the vicinity. Get a fire extinguisher and keep it where it is easily accessible. Fire is your enemy. Fire is everybody’s enemy. Fire does not want your business to succeed.
Profit
Average profit on every 12.5kg gas cylinder is ₦500. Therefore, it is possible make at least ₦20,000 every month by selling 10 cylinders every other week. Depending on location and marketing, the profit margin is expected to be much higher.
Expansion, sales of associated items
If you have extra capital at start-up, you may include the sales of related items. These items include empty cylinders, gas burners/cookers, hoses, regulators etc.
Every new business has its peculiar challenges. Starting a cooking gas business is no different. With perserverance and putting the customer first, this business has the potential to grow and bring in good income every month.
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DEAR SIR I HAVE WENT TO OIL AND GAS TRAIN BUT NO MONEY TO START PLS SIR IN WISH AREAR YOU CAN HELP ME SIR I PROMISE BY THE GRACE OF GOD I WE NOT FAIL YOU THANKYOU SIR
Hi Kehinde,
Have you considered requesting a loan from your bank?
pls do u have a proposal that i can use to back it up for banks and friend loans. Thanks
Sir,iam a registered in Nigeria Oil&Gas plant Maintenance/Installation Professional,how can i secure loan to set up a gas plant in my area?Thanks,Ofremu Napoleon.
Hello, where can I get the required training for cooking gas? I want to start up this business
Sir what are the requirement from the bank before the can given a loan to start this business
Good day Sir,
I have been trying to get trainings in cooking gas refill. Can you please help me in this area or possibly with referrals to where i cam get training. I don’t mind paying so far i can get quality training.
Thank you
Please sir how do one get loan to open cooking gas station. I have seen a good site but no money to carry the project. Please I need help.
pls can I start with about 4 nos of 12.5kg cylinders as I have limited cash of about 60,000
For loan to start an LPG refill plant, email your proposal and request to info@edvgas.com.ng or call victor @ 08167435683
Am interested in LPG business, kindly connect me to where I can get the basic training….
Can one get a training materials to read instead of physical appearance because some people doing the business are not ready to teach
Thanks for this wonderful tips.
Where / how can I get reading training material for starting LPG cooking gas business?
Training on how to start gas filling business
How to start hawker gas supplying business
Hello please I would love to get basic training on this business sir. Thank sir I am from sapele delta state Nigerian this is my number 0808 321 7628
Good afternoon sir. #sir can i use 50\60k to establish a Gas business in my street here in Abias State (Aba)
I am graduate of Architecture from the university of Ilorin and I just got introduced to the LPG business. I am presently undergoing training at a firm here in Ilorin and I’ve seen the mouthwatering opportunity in the business. The only challenge I’m facing now is how to get started, I don’t have the capital, what do you suggest I do?
I meed a proposal
Comment Text*thanks for the info sir, please sir where can i get the training in lagos
Thank you sir for this information, am interested in this business, but some one told me that , I must register, before I can start the business?
Plss how can I get the basic training for this business, dis is my contact plss contact me for any information 08058982191
Hello sir, I am interested in this business how to start, and where can I get this training .
I am Interested in starting up the LPG biz but the person selling at our area Sanyo Ibadan said I need to register with DPR first and also get trained before I could start the business
I’m satisfied with the information that you provide for me and thanks for this.
Well I am training for the cooking gas business right,. I just want to know the requirements for the registration of the business.
Please sir, I have passion of investing in the business,but really want to confirm some of the official registration or duties one will expect to get before starting it. Also want to confirm if there’s means you can assist me by putting me through how to go about be it, either by having ebook about, and other essential personal advice on how to start. Thanks, and expecting your response.
I would like to start a LPG Supply Business. I need guidance. Can you please contact me on zimmazula@gmail.com.
Thank you
I am trained now for the gas business. What I need is money to set up the business. Pls how can I get loan instantly for the business. I have gotten a suitable space I can start up the business, right now I need money to start. How can I get a loan for it? Pls contact me on 09014822387
Please sir illustration in how to start gas filling business
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