How to Start a Gasoline Station Business?

Posted on 25 June 2018 at 00:25

Video Credits: Spill Prevention via YouTube

gas_station

Image Credits: Sharon Lopez via Bitlanders

One of the issues identified by the officers of the Bureau of Fire Protection (BFP) in the municipality where I was previously assigned was the rampant illegal selling of gasoline and other fuel using containers other than the required by the law. Due to lack of gasoline station in the area and considering that most villages are located in the interior and remote areas, small retailers came up with the idea of selling gasoline/diesel using bottles and other similar containers. Motorcycle owners who pass by the place would patronize these retailers knowing that there is no station where they could buy from.

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Because of this, the BFP conducted an extensive operation in order to identify the individuals involved and to put a halt to their high-risk activities. Selling fuel in containers other than required by the law may cause accidental fire and illnesses due to inhalation of hazardous fumes. So much so, this activity has an undesirable effect on the environment. The personnel from the BFP conducted lectures and fora to discuss the risks of using containers other than the required by the Department Circular No. DC 2003-11-010. Following that operation and lectures was the passing of an ordinance banning the selling of gasoline in the bottles and other similar containers.

We Need More Gasoline station

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The number of vehicles is increasing every single day. Thus, the need for petroleum products is also on the rise. Putting up a gasoline station in a strategic place is a very viable business. Though it may require a certain amount of investment. If you are planning to have one, here is a guide for you...

What are the Requirements?

Start-Up Capital

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Putting up a gas station would require a working capital of 3 million pesos ($60,000.00) at the least. This is aside from other expenses we need to incur during the preparation or the construction of the station if needed. This is a big amount and ordinary individuals may not be able to raise this amount. One way of raising capital is through borrowing from banks and other financing institutions. Forming a group such as cooperative, partnership or corporation in order to raise the required capital is also a good idea.

Strategic Location

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It is important to consider the accessibility and the regular route of the vehicles in the place. The more vehicles passing the area, the more demand for fuel. You should also study the proximity of the place to other gas stations. It is always advisable to have a gas station placed in the area where the center of business takes place. Customers are also wary of filling up their fuel tank on highways where there are few people. The safety of the customers should be one of the main concerns. Visit your local government unit to discuss the chosen location to see if it complies with the Comprehensive Land Use Plan (CLUP).

Lot Area

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Most companies would require at least 1,000 sqm and an additional 35 meters for the frontage. This would allow the station to accommodate more motorists, especially during rush hours. Customers are more likely to choose filling up fuel at a convenient station. Though if you are planning to put up a smaller gas station, a 600 sqm would suffice for a mini project.

Business Permits and Licenses

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Aside from the usual business and other permits to be secured from the barangay where the property is located, DTI and other permits from the municipality, you are also required to secure an Environmental Compliance Certificate from the Department of Environment and Natural Resources (DENR). It is important to consult a legal officer in the locality where you are planning to put up the business.

Staff and Employees

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The number of employees we need to run a gasoline station depends on the volume of motorists and the length of the time of operation. If we need to operate on a 24-hour, we will need three (3) sets of workers every day.

Hours of Operation

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It depends on how many numbers of hours we plan to operate in a day. If it is not necessary to operate on a 24-hour schedule, then we can opt to be opened for 16 hours. Usually, the main consideration is the safety of the station as well as the people manning the business.

Products

What products do you need to sell in your gas station? This would include the different types of fuel you would like to sell and other services which you may want to consider.

Terms/mode of Payment

the price of petroleum products is high. in order to help, big companies offer terms for the payment of the supplies. Different companies offer different terms of payment. To get the best deal, we need to talk to different companies.

Maintenance

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As the pieces of equipment and other materials age, we can encounter problems that require the help of a technician. As a business owner, we need to undergo training in order to learn how to troubleshoot minor problems. Our staff and employees should also undergo training to gain the basic knowledge in the proper handling of the equipment they are going to use.

On the final thought...

Having a gas station would be a lucrative business. The demand for fuel is continuously increasing and there is no indication of slowing down despite the continuous increase in the price.

Here is another video that will help us learn more about opening a gasoline station business through franchising. This video is for presentation purpose only and the author does not intend to promote the company mentioned herein.

Video Credits: Francis Glenn Yu via YouTube