[SIZE=6]Fuel stations don’t make much money[/SIZE]
We all complain about the price of fuel, but it’s government taxes that make up a significant chunk of it.
The government takes almost 58 bob from every liter of fuel you purchase
Yes. Then there’s the cost of the fuel itself and delivery. Retailers try to make about 4-5p per litre, but out of that they have to pay staff, business rates and corporation tax.
Then Franchise costs as well
58bob ni mingi…
That’s covered on delivery cost.
Lets hope things can change when we start producing oil. In some countries especially in the gulf, people dont think twice about buying V12 6 liter Bi turbo engines because with the price of fuel there, he will be spending less on fuel than a Kenyan trying to fuel his bodaboda
Employed entrepreneurship.
Oil retailers only make Ksh 3.89 per litre
Not immediately. If at all we start producing oil, depending on the agreement, Tullow will have to recover its costs first and source the best prices for its oil on the international market.
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Any fuel dealer from top to bottom will make between 3 and 10 shillings. Say now you sell 20,000 liters a day and make 5 Bob. That’s 100,000 per day. 3m per month. Toa operating costs hata 1m. You have a cool 2m.flat Tatu hizo.
how many litres does a fuel station sell in a day on average? anyone with the figures?
This is true… it may not seem like much money per liter but these guys work on volumes. So, literally, at the end of the day, they make good cash.
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Nope. Averagely franchised petrol stations sell 150K Liters per month.
Wacha zako.
On average most motorists fuel around 1k per day.
That means with 20,000 liters a day - the station fuels approximately 2500 vehicles.
Hii ni ngumu.
This is plausible.
Hehehehe, anybody in this business will tell you, kama hauna your big car to do your deliveries then margins will reduces drastically.
You can sell around 5,000 litres in a day, a very good good day.
Weka 3.89 profit. Problem is if eg Shell brings you the fuel. They charge you 1 shilling per litre for transport. So to that 3.89 profit toa 1 shillings.
They, petrol stations, operate big sales turnover but very little profit margins. Government is earning more than you the business person. Na that 3.89 shillings will be subjected to corporation tax end of year na say half goes to staff as salaries then tena kuna PAYE to be subjected.
Yeah, margin is fixed by ERC. 10bob per litre. over 95% ni taxes and levies.
The owner can make alot of money in the black-market( those who do it call themselves “watu wa shamba”). All people in the ‘adulterated’ fuel business have all the legal compliance documents/licences from ERC, KPC etc to buy, sell and transport the commodity. All one needs is a discrete yard, willing sellers(tanker drivers), siphon and dilute the product with kerosene by a ratio of 1:10 (anything on top of that, cars start acting funny). The diluted fuel goes to Rwanda /whatever. The undiluted stuff(if one wishes) is resold at the owners decoy filling station / at a wholesale price to other people.
Before the ban,the ‘Illegal’ diesel was going for 75sh and unleaded approx 87sh. (minimum purchase volume 5000 sh).
Things are getting harder though.Apparently, the spike in the price of kerosene(at par with diesel) is to curb this very lucrative activity.
Boss ten bob uwezi get… 4 shillings retailers profit
6 shillings importers. Petrol station makes around 4 shillings per litre if its your car went to fetch the fuel from the depot.