Kerosene (HHK) Distribution And Retailing ( Surface Tanker) In Nigeria; The Feasibility Report.

Kerosene is a light fraction petroleum product refined from the raw petroleum. Kerosene is one of the lighter “distillates” in a petroleum refinery, lighter than gasoil/diesel, and often in the same mix with jet fuel (e.g., Jet A1).

House hold kerosene is generally used as fuel for cooking in Nigeria like in most developing countries.

The use of peddler truck and surface tankers are use to distribute and retail HHK in Nigeria.

The demand for kerosene is fuelled by the large percentage of low –income earners in Nigeria.

The business of distributing and retailing this petroleum commodity can be described as small/medium scale business as it requires less start-up capital & human resource requirement to be successful in this venture

An entrepreneur can start –up with N500,000 – N1,000,000 and make 10% profit monthly depends on how large and what level he/she want to play .

This report will Guide intending investors on how to start-up Kerosene distribution and retailing business in Nigeria.

Table of Contents

TABLE OF CONTENTS 1 Introduction 2 Crucial Factors in decision making for investment 2.1 key success factors 2.2 opportunities 2.3 Threats 3 Market Analysis 3.1 Government Price Regulation 3.2 Petroleum Equalization Funds 3.3 Price Mechanism 3.4 Market Demand & Supply 3.5 SUTAKED 4 Proposed Business Legal status 4.1 Registration 4.2 DPR Application & Permit 5 Project Input/Cost 5.1 Surface Tank 5.11 Surface Tank costing 5.2 Proposed Location 5.2 1Location leasing 5.3 Human Resource Requirement 5.4 Peddler Truck Capacity 5.5 Working capital 6 Financial Analysis 6.1Start –up Analysis 6.2Revenue Assumption 6.3 Project Returns 6.4 Projected cash flow 6.5 Projected income statement

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