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This branch is managed and administered by Branch Managers as there are to deal with the
sale of fuel and generally, supervise the nearby PAT stations by supporting retail sales.
However, wholesale sales start from depots in Dar es Salaam, Tanga, or Mtwara and are sent
through owned or hired trucks to transport fuel to the customer in up countries.
Many times, customers prefer to take the fuel using their own truck ex-depot however this
option is also very safe because transfers the risk at the depot.
Looking for wholesale or retail customers is not a small matter, it is something that requires
time and money. Usually, you can't reach a customer through a phone and understand each
other, customers like to be visited and request order so that you will be able to sell your products
and get money.
Difficult customers are those who buy with cash and who often are price sensitive and run
petrol stations most of them look for a good price in the market, and regular customers are
those who have credit facilities with the company and which it is not easy to lend to everyone.
Our trip this time was targeted to reach customers in the southern region of Tanzania, especially
new and old stations that are strategically located on the road, and by the power of Allah, we
managed to visit a big number of them. However, we started from Iringa, Mafika, Makambako,
Mbeya, Sumbawanga, Mpanda, Songea, Tunduru, Masasi, Mtwara, Lindi, and Tanzania Coast.
MARKET OBJECTIVE
To identify general sales, market characteristics, and new marketing trends in all regions of
Tanzania’s south and southern highlands for Petroleum Products and services. This survey
includes those that relate to DIESEL, PETROL, AND KEROSENE sales in the region. In
particular, the study is sought to characterize the trend of the wholesale petroleum market,
consumer accounts, cooperate accounts, and petrol service stations in the Region.
METHODOLOGY
For this task, PETROAFRICA MARKET TEAM compiled and analyzed relevant market
study reports by physically visiting the petroleum dealers in the region: the Public Petrol
station owners, retail cooperate accounts, private credit, and cash accounts.
THE TEAM
This study result is a successful combined effort of Team Leader Mr. Abdulaziz -B2B
Manager and Abdirahman Yusuf – Marketing Manager Mbeya branch.
FINDINGS
Our survey reveals that over 5 out of 15, available stations are under construction. As more
players join the market, competition increases, and these make increases the number of
customers for bulk sales.
Nevertheless, we meet some challenges whereby we were able to meet a few numbers of
directors or owners who run the station rather we met a big number of station managers and
collect less information about the business. Another challenge is that few of the station
managers were able to give their directors numbers and left us with only their numbers.
Southern regions are the regions that deal with large farming activities and they use vehicles to
transport their harvests to other Tanzania cities regions, other region like Ruvuma involves in
coal mining activity such that they require much diesel fuel for daily operations. Generally, all
petroleum products are required in the area but the most fast-moving product is diesel then
followed by petrol, kerosene does not move well but it’s always good to stock in order to attract
all customers because out-of-stock normally discourages most customers.
However, the mostly to targeted customers were privately owned service stations, consumer
accounts and cooperate accounts which are in the region since most of the petroleum companies
run their own stations or have dealers and they strictly monitor the supplies.
CUSTOMER CHARACTERISTICS
Most of the dealers of petroleum products who own the petrol station buy fuel straight from
Dar es Salaam, they have their own trucks to transport fuel to their location.
The customers here are very price sensitive and they will always purchase from the lowest
supplier in the market and they purchaser in cash.
Further to this the customer care so much about loading time, when they have agreed with the
supplier and deposited money in the supplier account, they actually need the truck to be loaded
the same day without fail since they highly depend on the truck to arrive early so as to avoid
out of stock cases.
There are quite a good number of Service stations in the whole region starting from Iringa,
Ruvuma- Songea, Mbeya, Rukwa- Sumbawanga, Mtwara and, Lindi, we have privately owned
service stations and Petroleum Company-owned service stations that are operated by dealers.
Most of the dealers who are running Petroleum company’s service stations also have their own
private station so you may find that one person owns more than three stations in the whole
region plus the one that he is running as a dealer.
MAIN COMPETITORS
The main competitors in the region are the meager petroleum companies coz all the large
petroleum companies in Tanzania are having petrol service stations in the southern highland of
Tanzania namely TOTAL, ORYX, PUMA, OILCOM, CAMEL, LAKE OIL, but apart from
this we have privately owned companies that have dominated the petroleum industry for quite
a number of years that is ASAS PETROLEUM, OILCOM-TAWAKAL, these companies have
clients that are with them all these years and they only fuel at their stations.
However, the Advantage that we have over the others is that we always have a fuel truck that
goes to the Mbeya region and Songea region after we open our station so we might have cash
sales to the retail service station that may be needing a small quantity of fuel as they wait for
their trucks to come from DSM, for instance when a client in Iringa, Namtumbo needs like
10,000 liters diesel to avoid his station running out of stock we can divert our truck and sell
him one compartment as he waits for his own truck from DSM, but this must be cash business.
The southern regions market is high potential due to the fact that they have a large consumption
of petroleum products that is not satisfied, the number of petroleum privately owned stations,
the company owned and other suppliers do not satisfy the market since the consumption is
bigger than the supply, the region also is bordered by 3 countries all the countries nearby
provinces depend on fuel supply from southern highlands of Tanzania the people cross to
Tanzania to buy fuel, also the activities in the region itself depend on fuel inside the region so
you find that the fuel supply does not satisfy the market.
The recommendation is that in dealing with the customers who need to buy fuel from us it will
be good if they pay cash before supply and for those who are at least trusted we should collect
post-dated cheques for credit supply with sign contract. However, customers that are new and
require credit facilities should bring BG for credit supply.
PETROL SERVICE STATIONS THAT WERE VISITED IN THE MARKET SURVEY
27 MOGAS MAKAMBAKO
13 OILCOM MBEYA
15 GAPCO MBEYA
16 JM PETROL MBEYA
STATION
17 MILO STATION MBEYA
20 MANJI MBEYA
21 DAIMA MBEYA
22 MANYANYA MBEYA
5 SERENIVA MPANDA
COMPANY LIMITED
6 GBP SERVICE MPANDA
STATION – MPANDA
RUKWA
NJOMBE
9 GAPCO NJOMBE
RUVUMA
LINDI
1 KINJEKITILE LINDI
FILLING STATION
2 LAKE OIL LTD - LINDI
MNAZI MMOJA
PETROL STATION
3 LAKE OIL LTD- LINDI
MATOPENI LINDI
4 NAJMA PETROL LINDI DIRECTOR KASIM 0715 668 669
STATION – LINDI ABDALLAH
5 ORYX OIL LINDI
COMPANY LIMITED
– MNAZI MMOJA
6 ACER PETROLEUM LINDI
(T) LIMITED
7 AHMED R. BONGI – LINDI DIRECTOR AHMED BONGI 0713 387 776
KING J PETROL
STATION
8 BUTI LA ZUNGU LINDI
SERVICE STATION
9 FOUNTAIN LINDI
PETROLEUM LTD –
LINDI SERVICE
10 GAPCO (T) LTD- LINDI
LINDI PETROL
STATION
11 LIVE FUEL AND LINDI
SERVICE STATION
12 LAKE OIL LIMITED – KILWA
PWANI