Just How Profitable Is Cooking Gas (LPG) Business?

The profitability of this business depends entirely on your customer acquisition and retention efforts. This is how the LPG gas business works.

You purchase gas from wholesalers at Ksh100/- per kilo of gas (price may vary) and sell for as much as Ksh154 per kilo. Thus 13KG gas will cost you Ksh1300 and you will re-sell it at Ksh2000 thus making Ksh700 profit. The 6KG one will cost you Ksh600 and you will in turn retail it at Ksh1000 making profit of Ksh400.

On a good day you can make sales of Ksh10,000 with a net profit margin of about Ksh2,000. A bad day is when you make sales of less than Ksh5,000.

Final Word

Cooking gas business is a good retail business in Kenya provided you find a market where prices are stable and quality of gas is not compromised. Unlike other business where you need to be involved on a day-to-day basis, this one can be operated remotely as long as you hire a good shop attendant.