Investing in Petrol Station


If you are thinking of buying a petrol station presently, you might just be few steps away from financial freedom. Simply take into consideration a few things you should know before you make the purchase. Buying a service station can be a bit more complex than many other types of issues due to environmental or franchise variables. They can also be a great investment if structured properly.

State of the Market

Nigerian economy has remained largely driven by the oil and gas sector and will remain so for much a longer time if the happenings in the politics of governance remain unchanged.

The oils and gas downstream sector is one of the most popular businesses that people generally desire. They are (relatively) easy to operate and can be a good investment for the right owner. The demand for Petrol station will remain high – even if the price of oil continues to fluctuate. If there is a major shift to “green” energy in the future people will still require local and accessible centres to fuel their vehicles.

Compare Prices

Do not just grab the very first offer simply because you have been counselled on the double digit profit in such investment. If you are in the market for a petrol station either for sale or lease please ensure that you make fair comparisons. It is important to compare prices from many offers. The selling prices of petrol stations as well as return on investment can vary widely so take a close examination of all the facts.

Ask important questions like:

– Are the premises leased or owned?
– What other factors are influencing the price or profitability: convenience store, car wash, café, etc.

A petrol station can be a great investment but please be sure to make sure your comparisons are on par.

What to Look for in a Petrol Station for Sale

LocationTraffic & accessibility are the keys here. An ideal situation may be one on a major highway with little or no competition. A busy street with good access from several directions is also highly desirable.

Convenience StoreA large convenience store will attract traffic. The bigger the better, in fact. Generally, all things being equal – a service station with a large convenience store will attract more customers than a similar one that has a small convenience store.

Neatness What shape is the gpetrol station for sale in? Is it clean? Is it attractive and welcoming or is it run down, dirty and needing of some significant changes? This is important. A petrol station that is clean and welcoming will attract more traffic.

Neighbourhood If crime is a concern for you (and it should be) some neighbourhoods are more prone to crime than others. Oil businesses can be targets for criminals so choose your location wisely.

Further Issues

Environmental Issues Consult with an expert regarding the environmental issues surrounding a petrol station business for sale. You may encounter issues such as contamination, tank lining and remediation. If there is an environmental issue to contend with you will want to know before you buy the business. Clean-ups can cost you millions of naira. Investigate if there is any pending or past law suits or actions taken as a result of environmental issues. The new owner of a petrol station may be held liable.

Road Construction Check with the town planning authorities to see if there is any major road work planned for the street that the Petrol station is on. Road construction can cause serious financial issues for a petrol station business if it prevents customers from coming to you.

Franchise or Independent?

If you buy a franchised Petrol station business under the flag of one of the major companies then you typically will buy your products from them. Independent Petrol stations are not necessarily held to one supply source but they can sign agreements with distributors to get pricing breaks on product purchases.

Buying a filling station business for sale can be a great investment. It is important to also remember that buying a petrol station is not necessarily a “hands off” investment – contrary to what some people may think. It involves a lot of hands-on work to make it a success. A gas service station business is like most other small businesses in that books needs to be kept, employees need to be managed and proper planning must be in place to make it a success.


The above checklist is to guide all parties properly in the bargaining process. For the seller, our guide here will enable you put your property in a proper shape to attract good offers from buyers.

For a discerning investor, our guide will also help you see not just the property offered for sale but also the hidden potentials in it. As well, the knowledge you have acquired will also straighten your bargaining ability and enable you cut cost as appropriate.

It is very important to do thorough investigation and to consult with legal, accounting and environmental experts before you make the purchase. We hold ourselves available, please contact us

Contact Palydom now or email us at, for a FREE, No Obligation consultation regarding any of your property related issues or requirements.

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