Fuel Business on the Side

Today's weather: High = 32 Low = 21
Partly cloudy

It all started with a few conversations with friends over lunch, and the information from these blog posts -- that is, the idea to run a litte side fuel business. I was joking about it initially, but this looks to have tons of potential if today's phone call was any indication of how much the scooter riders downtown are longing for a reliable supply of fuel. Already people are calling me up and asking for gas.

To make a long story short, a friend calls me and says, "Help, I really need fuel!! Please give me fuel." I said OK sure, I'll charge you 50 RMB for a fill-up. He didn't even flinch at that price. As it turns out, the going market price is a bit higher: about 10 RMB a liter, or roughly $1.50 a liter. Basically that means it's 60 RMB to fill the scooter tank using gasoline stored in pop bottles from the motorcycles shops.

But I've also heard rumors that the pop bottle gasoline is diluted with water.

So obviously there's already a thriving market for fuel, and there are already many players. I'd concentrate on just selling to friends and related contacts, not bothering to deal with strangers. That way, everyone can ensure they are getting a reliable supply of gasoline, it isn't watered down, and I'm only making about 50% profit margins on this little side business.

So far I've got 5 customers for this little business. I'm experimenting with different methods, including jerry cans. As of now, I've already recovered the cost of filling up the jerry can (it cost 70 RMB) and it's still more than half-full. So I can easily make a profit once this jerry can is used up, and there is still plenty more gasoline in the motorcycle tank itself for additional siphonings using a handy plastic device.

If this little side business goes well with more and more customers, I'll start thinking of ways to bring in larger supplies of fuel, using larger versions of jerry cans, and storing them underground in a safe place.

When I go back home for the summer in Canada, I'll be sure to bring along the tools I'm using for this little business and it will hopefully get a lot of laughs from friends.