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LPG Cooking Gas Plant Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Oil & Gas Sector

Are you about starting a cooking gas retail business? If YES, here is a complete sample LPG cooking gas plant business plan template & feasibility report you can use for FREE .

Starting a cooking gas plant is indeed one of the means of owning a business portfolio in the oil and gas industry. It is a money spinning business because of the viability of the trade. All over the world gas is being used. This is one of the reasons why it is one business worth delving into.

A Sample LPG Cooking Gas Plant Business Plan Template

1. industry overview.

A cooking gas plant is a place where both individual and small businesses that also retail cooking gas go to refill their cooking gas cylinder. It is usually more organized and bigger than the average small scale gas shops that you can find around street corners.

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In essence businesses in this industry retail cooking gas to individuals and small businesses. The Cooking Gas Plants industry over the years has experienced a modest amount of volatility. As a matter of fact, as more Nigerians switch from kerosene stoves to gas cookers, the demand for cooking gas also increase.

So also, as per capita disposable income continued to increase, some household, even people in a smaller apartment would choose to go for gas cooker even if it is camp gas as against settling for the not too pleasant coal stove or kerosene gas. Besides, in Nigeria of today it is not more economical to make use of

Just like other industry, the cooking gas plants industry has also experienced its fair share of ups and downs over the last five years. As a result of restiveness in the Niger Delta area of Nigeria and also the recent fall in global oil and gas prices.

The Cooking Gas Plants industry is indeed a very large industry and pretty much thriving in all the parts of the world especially in countries in Africa. In Nigeria alone, there are loads of cooking gas station scattered all around metropolitan cities such as Lagos, Abuja, Port Harcourt, Ibadan, Kaduna and Calabar et al.

The industry is known to employ several thousands of people. There are no cooking gas plant companies that can boast of having the lion share in the Nigeria market; the industry is pretty much open for competitions.

Although the cooking gas plants industry can be said to be a competitive industry, but it does not in any way stop entrepreneurs who are creative and financially capable to still make headway in the industry. It is indeed a profitable industry especially when the business is well located.

No doubt residential estates and busy cities with growing population is highly suitable for cooking gas plants. The catch is that if there are households that make use of gas cookers in any city, then the city would have need for a cooking gas plant.

2. Executive Summary

Blessed Cooking Gas Plant is a fully registered and licensed business venture that operates a standard a cooking gas plant in Akoka – Lagos, Nigeria. We have been able to secure all the required licensing from both the Yaba LCDA and the Lagos state government.

Our basic services and products offering to our highly esteemed customers as a standard cooking gas plant is to retail cooking gas to both individual and small businesses. We will also run a related business that will be involved in retailing gas cookers, cooking gas cylinders, gas cooker accessories and gas cooker repair and servicing workshop.

We are quite aware that in order to become the number one choice for gas cooker owners who reside in the neighborhoods where our chains of cooking gas plants will be located, we must continue to make our cooking gas plant welcoming, easy to locate and that is exactly what we will do.

We are open to the use of latest technology in the cooking gas plants industry. No doubt our excellent customer service and the range of additional complementary services we offer will position us to become one of the most preferred cooking gas plants in the whole of Lagos State.

At Blessed Cooking Gas Plant, we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity. We are in the industry to make a positive mark.

We are quite optimistic that our values and quality of products and service offering will help us drive our cooking gas plant business to enviable heights and also help us attract the numbers of clients that will make the business highly profitable.

We are a company that will be dedicated to establishing and maintaining the best practices as it relates to the cooking gas plants industry. Blessed Cooking Gas Plant will ensure that all our customers are given first class treatment whenever they visit our cooking gas plant for refill or to make enquiries.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Blessed Cooking Gas Plant is owned and managed by Mr. Linus Uchenna and his immediate family members. The business will be financed by the Mr. Linus Uchenna and his immediate family members and they will be actively involved in the day to day operation of the cooking gas plant.

Mr. Linus Uchenna has a B.Sc. in Business Administration and Management from the University of Lagos and he has well over 15 years of experience in the oil and gas industry. He will be bringing his wealth of experience to help build Blessed Cooking Gas Plant to favorably compete with leaders in the industry.

3. Our Products and Services

Blessed Cooking Gas Plant is a fully registered and licensed standard cooking gas plant that is positioned in the cooking gas plants industry in the Nigeria to maximize profits.

Aside from the fact that we will be retailing cooking gas to households and small businesses, we will also engage in other complimentary services that will help us maximize profits in the industry. These are the products and services that will be made available to our customers;

• Cooking Gas
• Gas Cookers
• Cooking Gas Cylinders
• Gas Cooker Accessories
• Gas Cooker Repair and Servicing Workshop

4. Our Mission and Vision Statement

• Our Vision is to operate chains of cooking gas plants in strategic locations all round Lagos State and in major cities in Nigeria.
• Our mission is to develop highly successful and profitable chains of cooking gas plants with state of the art facility and latest technology; a business that will not only meet the needs of her clients but also supersede their expectations.

Our Business Structure

Blessed Cooking Gas Plant is set to become one of the leading cooking gas plant business in the whole of Lagos State and other cities where our chains of cooking gas plants will be located hence the need for us to build a solid business foundation and business structure that will enable us achieve our aims and objectives.

Excellent customer service and efficiency are top priority to us which is why we will ensure that we look for applicants that match the picture of the business who want to build before hiring them. Although we will provide trainings in areas such as excellent customers services and safety as it relates to handling cooking gas et al, but we will ensure that we shortlist applicants that are customer centric.

In essence, we want to build a team, a dedicated workforce that will work together to help the organization achieve its set targets.

We will not only hire attendants that will help supervise our cooking gas plants and attend to customers need when they patronize our services, but we will also hire employees that will manage our store where we retail gas cookers, gas cylinders, gas cooker accessories and our gas cooker repair and service workshop. Blessed Cooking Gas Plant will employ customer centric and skilled people to occupy the following position;

• Chief Executive Officer
• Gas Plant Manager
• Accountant / Cashier
• Human Resource and Admin Manager
• Pump Attendant

Store Manager

• Gas Cooker Repairs and Maintenance Manager
• Truck Driver
• Security Guard

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Cooking Gas Plant Manager

• Responsible for overseeing the smooth running of the cooking gas plant
• Maps out strategy that will lead to efficiency amongst workers
• Responsible for training, evaluation and assessment of workers
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the cooking gas plant meets the expected safety and health standard at all times.

Human Resources and Admin Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and plant activities.
• Interacts with customers, and ensure that they make purchase
• Makes lists of supplies in conjunction with the cooking gas plant manager
• Assesses customers’ needs and preferences and make recommendations
• Makes lists of supplies in conjunction with the management
• Prepares inventory or purchase requisitions as needed to replenish supplies.
• Prepares inventory or purchase requisitions as needed to re – stock.

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Pump Attendants

• Mans the various cooking gas pump machines
• Assists customers as required by them especially on how to handle their gas cylinder when they are within our cooking gas plant
• Provides change for customers
• Handles any other duty as assigned by the cooking gas plant manager

Cooking Gas Repairs and Maintenance Manager

• Responsible for running our gas cooker repairs and maintenance services
• Assists customers as required by them especially when it relates to choosing the right gas cooker and accessories

Distribution Truck Drivers

• Responsible for driving the company’s distribution trucks
• Assists in loading and unloading cooking gas cylinders.
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations

Security Guards

• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly

6. SWOT Analysis

No doubt starting a cooking gas plant is indeed capital intensive especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank.

We are aware that it will require loads of cash to set up a standard cooking gas plant in Akoka – Lagos State which is why we decided to do all that is required to build a profitable business; we don’t intend to invest our hard earn money in a business that we know we are not truly cut out for.

One of the tools that are required to position us in building a successful cooking gas plant business is SWOT Analysis. We hired the services of a HR and Business consultant who is based in Lagos – Nigeria to help us conduct SWOT analysis for our company and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Blessed Cooking Gas Plant, Akoka – Lagos;

Blessed Cooking Gas Plant is centrally located along one of the busiest area in Akoka – Lagos State; our location is in fact one of our major strength. Aside from the basic service that we offer, we also offer complimentary services that most of our competitors are not offering.

So also the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon and our attendants are well groomed to handle various classes of customers; our excellent customer service culture will definitely count as a strong strength for the business.

Our perceived weakness could be the fact it is a new cooking gas plant business which is owned by an individual (a small family), and we may not have the financial capacity to sustain the kind of publicity that can give us leverage and start operating chains of gas plants in various cities in the Nigeria as planned.

• Opportunities:

We are centrally located in one of the busiest communities in Akoka – Lagos State and we are open to all the available opportunities that the city has to offer.

Our business concept also positioned us to attract people who like service and repair their gas cookers, purchase gas cookers, gas cylinder and accessories. Akoka is one of the densely populated communities in Lagos State with a handful of higher institutions, and indeed populations translate to opportunities.

One of the major threats that confront businesses all over the world is economic downturn; when the economy is bad it affects consumers spending which in turn impacts businesses negatively. Another threat that we are likely going to face to confront us is the emergence of a new cooking gas plant, small gas shop or even a filling station that retail gas within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

One of the trends in the cooking gas plants industry is that, in the bid to stay afloat in the highly competitive cooking gas plants industry, owners of cooking gas plants now go the extra mile to ensure that they make their facility welcoming and conducive for customers.

Cooking gas plants now have stores where they retail gas cookers, gas cylinders, and gas cooker accessories and also a gas cooker repair and servicing workshop within their facility so as to leverage on the opportunities around them to generate more income.

Another trend in this line of business is the opening of chains of cooking gas plant in various locations all around key cities in Lagos State and Nigeria by a licensed and registered cooking gas plant company. So also some cooking gas plant now do home deliveries as requested by their clients. With this, they can easily create loyal clientele base.

8. Our Target Market

Before choosing a location for our cooking gas plant business, we conducted our feasibility studies and market survey and we were able to identify the location that will benefit greatly from our products and service offerings which is why we deiced to settle for Akoka – Lagos State.

Essentially those who will benefit from our service offering are those who own gas cookers and small businesses that retail cooking gas and they are of course busy corporate executives, business owners, households, students and caterers et al. They are the category of people that we intend marketing our cooking gas plants services to.

Our Competitive Advantage

From our recently concluded feasibility studies and market survey, we observed that there are several cooking gas plants businesses and filling stations that retail cooking gas scattered all over the Lagos State, as a matter of fact, there are about 3 standard filling stations that retail cooking gas close to same locations as ours. This goes to show that there is stiffer competition in the industry.

Before launching our cooking gas plant we have critically studied the market and we know that we have some form of competitive edge. Our competitive advantage is that we have a standard and well – secured cooking gas plant facility that offers additional complementary services that will definitely help us attract and retain customers.

Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also the wide varieties of other complimentary services and products that we offer and of course our excellent customer service culture will definitely count as a strong strength for the business. One thing is certain, we will ensure that in future, we open our chains of cooking gas plants in various cities in Nigeria and also sell our franchise. With that our brand will be well communicated and accepted nationally.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups cooking gas plants) in the cooking gas cum oil and gas industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Blessed Cooking Gas Plant is established with the aim of maximizing profits in the cooking gas plant cum oil and gas industry in Nigeria and we are going to go all the way to ensure that we do all it takes to generate enough incomes from both our basic product and services offerings and our complimentary services. Blessed Cooking Gas Plant will generate income by offering the following services and products;

10. Sales Forecast

One thing is certain when it comes to cooking gas plant business, if your cooking gas plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Akoka – Lagos State and every city where we intend opening chains of our cooking gas plant and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the oil and gas industry cum cooking gas plant line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Lagos – Nigeria.

Below are the sales projection for Blessed Cooking Gas Plant, it is based on the location of our business and other factors as it relates to small scale and medium scale cooking gas plant company start – ups in the united states;

• First Fiscal Year-: N500,000
• Second Fiscal Year-: N1.5 Million
• Third Fiscal Year-: N2Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy adopted by Blessed Cooking Gas Plant is going to be driven basically by making available standard and safe cooking gas, gas cookers, cylinders and accessories et al, excellent customer service and provision of complimentary services.

We will work hard to build a loyal customer base; customers that will always patronize us over and over again and as well help us use word of mouth publicity to get their friends and acquaintance to patronize us. We want to drive sales via making available easy and safe to use cooking gas pumps et al.

We are quite aware of how satisfied customers drive business growth especially businesses like cooking gas plant which is why we will always ensure that our customer service and facility are top notch. Over and above, our unique selling proposition is that we have various complementary service offerings such as retailing gas cookers, gas cylinders, and gas cooker accessories and also a gas cooker repair and servicing workshop.

In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer. Part of the marketing and sales strategies that we will adopt is;

• Introduce our cooking gas plant by sending introductory letters to residence, household, caterers, merchants and other stakeholders both in Akoka and in other communities in Lagos State
• Open our cooking gas plant with a party so as to capture the attention of residence who are our first targets
• Advertise our cooking gas plant on national dailies, local TV stations and local radio station
• Promote our cooking gas plant online via our official website and all available social media platforms
• Continuously Improving the performance of our brands
• Hire the services of experts to make our brands the first choice for household and residence in Akoka – Lagos State and other cities where we will open our chains of cooking gas plant
• Delivering consistent customer experiences to all our clients; making our first impression count positively
• Make use of attractive hand bills to create awareness and also to give direction to our cooking gas plant
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places all around Akoka and environ
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our cooking gas plant.

11. Publicity and Advertising Strategy

Despite the fact that our cooking gas plant is a standard one with a wide range of other complimentary services and products that can favorably compete with other leading brands in the cooking gas plants industry, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Blessed Cooking Gas Plant.

Blessed Cooking Gas Plant has a long term plan of opening our cooking gas plants in various locations all around key cities in the Nigeria which is why we will deliberately build our brand to be well accepted in Akoka – Lagos State before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products and services but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Blessed Cooking Gas Plant;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations in Lagos State and all around major cities in the Nigeria where we intend opening our cooking gas plant
• Engage in road show from time to time in targeted communities in Akoka and environs
• Distribute our fliers and handbills in target areas in Akoka and environs
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products and services.
• Ensure that all our staff members wear our customized clothes, and all our official cars, fuel tankers and trucks are customized and well branded.

12. Our Pricing Strategy

At Blessed Cooking Gas Plant, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Lagos State – Nigeria.

Be that as it may, the management of Blessed Cooking Gas Plant has put plans in place to offer discounts for our complimentary services and products once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products and services will be same as what is obtainable in any part of Lagos State, Nigeria.

• Payment Options

The payment policy adopted by Blessed Cooking Gas Plant is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Blessed Cooking Gas Plant will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via Point of Sale Machine (POS)
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products and services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a cooking gas plant business; it might differ in other countries due to the value of their money. We know that no matter where we intend starting our cooking gas plant business, we would be required to fulfill most of the items listed below;

• The Fee for registering the business (venture) in Lagos State – Nigeria – N15,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – N30,000
• Marketing promotion expenses for the grand opening of Blessed Cooking Gas Plant – N15,000
• Cost for hiring Business Consultant – N20,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N20,000
• Cost for payment of rent for 12 month and renovation inclusive – N240,000
• Other start-up expenses including stationery and phone and utility deposits – N5,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N200,000
• The cost for Start-up inventory (cooking gas, gas cylinders, gas cookers and accessories et al) – N500,000
• Cost for store equipment (cash register, security, ventilation, signage) – N10,000
• Cost of purchase of a distribution truck (fairly used) – N850,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – N15,000
• The cost of Launching a Website – N25,000
• The cost for our opening party– N30,000
• Miscellaneous – N50,000

We would need an estimate of N2.5 million to successfully set up a standard cooking gas plant in Akoka – Lagos State. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funding/Startup Capital for Blessed Cooking Gas Plant

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as kerosene retailing business.

No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Blessed Cooking Gas Plant is a family business that is owned and financed by Mr. Linus Uchenna and his immediate family members.

We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about N1 million (Personal savings N800,000 and soft loan from family members N200,000) and we are at the final stages of obtaining a loan facility of N1.5 million from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Blessed Cooking Gas Plant is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our cooking gas and other products and services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Blessed Cooking Gas Plant will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of a facility and renovating the facility as well: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants of cooking gas: In Progress
• Purchase of delivery truck: Completed

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In 2009 the government through legislation decided that gas cylinder valves were to be standardized. Out went the company specific valves and in came the universal valve which could fit any gas cylinder irrespective of the brand . The standardization was partially in response to pressure from small independent oil marketers who felt without such a move the re was no way they could compete in a market dominated by big wel l funded multinationals.

Majority of the consumers are not aware of cross filling and other workings of the LPG industry . All they want is gas, and conveniently so.

Big oil companies have started pushing for the reintroduction of company specific valves, quoting safety concerns, revenue leakages and tax evasion by the illegal wholesalers. The government has not shown any indication of reversing the 2009 legislation . Perhaps before a blanket reversal there will be more efforts to have the ERC and other regu latory bodies like NEMA and the police reign in on cross refilling and illegal refilling. 

Meanwhile some companies have started experimenting with RFIDs to trace the movement of their cylinders; from their depot s to the consumer and back. It’s still early to determine the  success of such efforts . Other companies are using universal but self sealing valves, meaning the cylinder protects itself from refilling by other wholesalers. It will take quite some time for these measures to have any impact since many cylinders are circulating within the informal channels.

Despite all the hiccups about 95% of the oil companies who are members of the cylinder exchange pool consider the LPG business profitable. The profits and relatively high in the business will continu e to attract illegalities.

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