Start A Petroleum Products Haulage Business - Business Ideas

Updated: September 15th, 2022
Start A Petroleum Products Haulage Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Petroleum products haulage businesses focus on guaranteeing a continuous supply of these products. Petroleum products can be transported via rail, trucks, tanker vessels, and pipeline networks.

Transportation of petroleum products is a lucrative business venture. To meet the demand for oil and other petroleum products, haulage companies must invest significantly.

Starting a petroleum products haulage business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell petroleum products, or selling petroleum products online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$2.81B
starting costs
$18.3K
gross margin
10%
time to build
720 days

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$252

Business Formation Fees

$600

$5,400

Equipment & Supply Expenses

$63

$700

Vehicle Expenses

$2

$10,004

Retail Business Expenses

$0

$3,150

Inventory Expenses

$0

$5,000

Training & Education Expenses

$0

$2,000

Website Costs

$13

$215

Advertising & Marketing Costs

$75

$2,486

Software Expenses

$0

$225

Successful Businesses

Business URL Rank

CSP Daily News

cspdailynews.com

90,883

Commercial Vehicle Loan, Deposits, Working Capital & Business Loans

stfc.in

137,474

MoPNG

petroleum.nic.in

242,792

Successful Exploration Starts Here

aapg.org

325,503

Department of Infrastructure and Transport (DIT)

dpti.sa.gov.au

398,851

Petroleum Service Company

petroleumservicecompany.com

414,529

InvestmentMap

investmentmap.org

582,739

JF Petroleum Group

jfpetrogroup.com

863,458

PetroChoice

petrochoice.com

1,193,520

Empire Petroleum

empirepetroleum.com

1,248,700

Callon Petroleum Company

callon.com

1,284,950

Pros & Cons

Pros Description

Rewarding work

Starting a petroleum products haulage business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Daily physical activity

Petroleum Products Haulage Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Face to face interaction

If you are the type of individual that thrives on human interaction, then this is the business for you! With a petroleum products haulage business, you will be hands-on with customers and or employees every day.

Strong Demand & Relatively Recession Proof

The demand for petroleum products haulage business is increasing year over year and the business is known to be relatively recession proof.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Low margins

The gross margins for your petroleum products haulage business are typically around 10%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the petroleum products haulage business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Lack of benefits

With a petroleum products haulage business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Isolation

Often times, as a petroleum products haulage business, you typically work alone and do not have much face-to-face interaction with other team members.