Just How Profitable Is Cooking Gas (LPG) Business?

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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

Co-Op post

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.

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