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How to Start an LPG Supply Business?

Case Information

LPG, which stands for Liquid Petroleum Gas, has become an essential necessity for most households. Before delving into this business venture, it's crucial to consider the following points:

 

1. Select the Right Location for Your Cooking Gas Business.

2. Understand and Adhere to Regulations Governing the Sale of Cooking Gas.

3. Prioritize Safety Measures and Precautions.

4. Learn Effective Management Techniques for Your LPG Retail Business.

 

These are the steps you need to follow when starting the LPG gas supply business.

 

Steps to Start Your LPG Gas Supply Business:

 

1. Get the necessary information about the industry.

·Consider factors such as how cooking gas is measured, where to buy it, common challenges in the LPG industry, quality identification, handling of gas cylinders, filling procedures, types of gas, and factors affecting local retail prices.

2. Put together a comprehensive business plan.

·Despite the apparent opportunity, a well-written business plan is essential for tracking goals, making informed decisions, assessing competition, and understanding the bigger picture as your business grows.

3. Acquire the necessary licenses.

·Obtain the following licenses to operate your LPG distribution business legally: ERC retail license, fire license, business permit, weight and measure certification, and a KRA certificate.

4. Get the right equipment for your LPG distribution business.

·Purchase LPG cylinders (which are property of oil marketing companies), a metallic cage, a fire extinguisher, and a digital weighing scale. Cylinders come in various sizes (3 kg, 6 kg, 13 kg, 15 kg, 25 kg, 45 kg, 50 kg), with the 6 kg size being popular.

5. Find an ideal location.

·Choose a location with potential customers, ensuring accessibility and convenience.

6. Identify the market niche for your business.

·Recognize the existing demand for cooking gas and strategically position your business to avoid intense competition.

7. Arrange for transportation and staff.

·If delivering gas to customers, acquire a suitable vehicle (truck, van, or motorcycle) and employ messengers for cylinder delivery.

8. Invest in marketing and advertising.

·Utilize various forms of advertising, including billboards, stickers, pamphlets, posters, and online classifieds, adopting aggressive strategies and attractive discounts.

9. Determine pricing.

·Set competitive and area-specific prices for gas cylinders.

10. Focus on excellent customer service.

·Ensure prompt and efficient service to maintain customer satisfaction.

 

While if you dont have enough money for build a complete LPG supply station, you can choose LPG Skid Station. It is an integrated equipment that integrates LPG storage tanks, pumps, motors, pipelines, valves and filling equipment. Skid mounted stations can fill cylinders with LPG like large LPG stations , or they can fill LPG tankers with LPG. So, with an investment of $15000 to $20000, you can start a cooking gas filling station. Product detail: LPG Skid Station Detail

 

If you have interest for more details, please contact us:

WhatsApp: +86 132 5639 3715(Chloe Lee)

Email: lijinpei@c-jsec.com