How To Start A Petrol Pump: Step-by-Step Guide

Do you want to start a petrol pump? If yes, then this is a great opportunity for you. Because petrol selling companies have set a new 65,000 petrol pump opening target. Since then the number of petrol pumps in our country will be doubled.

Through this article, I am going to tell you how you can open your own petrol pump, what should be the eligibility for this, how much land will you need, how much will be the cost, how you can apply and how much you can earn from this.

1. What is the Eligibility Criteria?

For the opening of a petrol pump, there is only 3 eligibility.

  1. You must have Indian citizenship.
  2. Your age should be between 18 – 60.
  3. You should have a high school degree.

2. Land Requirements

The most important thing for the opening of a petrol pump is Land. If there is no any land in your name then you can also take it on rent. For this, you have to make a certificate called NOC from the owner of that land. With this, he can not move an object against you further.

If that land is in the name of a member of your family then you can still apply for the dealership of the petrol pump. If you have a farming land, then first you have to convert that land. After this, you can apply for the dealership.

If you want to open a petrol pump on the State Highway or National Highway then you must have at least 1200 to 1600 square meters of land. If you want to open in an urban area you must have at least 800 square meters of land.

How to Apply For A Petrol Pump?

In order to apply for a petrol pump, you must first go to a website called petrolpumpdealerchayan.in.

petrol pump

After the opening of this website, you have to click on the register button and fill out the form in it. A password will be sent to your email id. After that, you have to log in again with your email id and password.

After the login, you have two options. First Available Advertisement and Second Applied Advertisement. You have to click on the available advertisement.

After that, any company you want to open the petrol pump can select and apply.

  • When you click on the filter button in that form, you will get the different type of oil company like Hindustan petroleum corporation(HPCL), Bharat Petroleum Corporation(BPCL), etc. All you have to do is select the company and select which state you want to open your petrol pump.
  • As soon as you click on the View Details button you will find all the areas where the petrol pump is required. After selecting the area you have to click on the Apply Now button.
  • After that, just 40 minutes are there to fill another form. Before applying, you will get a View button that you can get the information you need.
  • After that in the lower, you will get three options in which you have to open the gas station. If you want to open yourself alone, you can click on the individual button and if you want to open it in partnership, you will have to click on the partnership.
  • To fill this form you have to pay Rs. 10000 as an application fee.
  • You must fill your basic information in order to fill the form below. After filling the entire form, you can extract its Terms and Conditions by uploading your photo and signature and submitting and processing and then clicking on the payment button.
  • After that, you have to pay Rs. 10000 as a fee. You can use any credit card or debit card for pay money.
  • After applying, the company officials will come to you for checking procedure. Those people will check your documents such as land, your location, and documents such as the NOC and the rent agreement. If they feel all are right then they will pass your application.

How Much Money Required to Open A Petrol Pump?

For this, I had to do a lot of research. I discuss with 3-4 owners about this but no one even correctly told the exact amount. But after a lot of research and talking to them, I came to know that there are two types of petrol pumps.

  1. Company Owned Dealer Operated.
  2. Dealer Owned Dealer Operated.

In the Company Owned Dealer Operated, only the land belongs to you and all the expenses or investment company does. That’s why it does not cost much.

While in Dealer Owned Dealer Operated, all the investment including land and expenses will have to do by the dealer only.

Therefore, in order to open a petrol pump, it may require around 60 lakh to 1 crore rupees. Also sometimes you may have to give some bribe to grafter. Therefore, it can cost at least 1 crore to 1.5 crore rupees. So if you have at least 60 lakhs to 1.5 crore rupees then you can apply it.

 

Read: 6 Best and Powerful Business Marketing Strategies

How Much Money Can You Earn From A Petrol Pump?

In this, all incomes will be on the commission’s base. The company does not give you any salaries in this. You get commissions on the amount of liter you sell petrol or diesel. Now let’s do a maths that how much total money you can earn from a petrol pump business.

I contacted the 3 to 4 petrol pump dealers and they all told me different commission rates of petrol and diesel. It turns out, on average, that when you sell 1-liter petrol, you get a commission of Rs. 3 and when you sell 1-liter of diesel you can get a commission of up to Rs. 2.

Accordingly, if you sell 50 thousand liters of petrol and 1.5 lakh liters of diesel in 1 month then you will have a total income of Rs. 453500.

Example:

Petrol = 50,000 litre × Rs. 3.07= Rs.153500

Diesel = 150,000 litre × Rs. 2= Rs. 300000

Now Gross income = Rs. 453500

Total Expenditure = Rs. 100000 (Including Maintenance)

Net Income = Rs. 453,500 – Rs. 100000 = Rs. 353500 (This will be your net income).

This is when you sell only 50,000 liters of petrol and 1.5 lakh liters of diesel. But if you sell more than this then your income may increase more.

What Should Be Your Plan Before Opening the Petrol Pump?

  • First, you have to know how much budget you have. If you have at least 1 crore rupees then it’s okay. If you have less money then you should make some partners.
  • After this, you have to choose your location. You have to visit the website and see where the company has made an advertisement. Buy the land at the same location or keep it on the rent. Before taking on the rent, the owner of that land has to make a NOC document which states that there is no objection to the owner of the land that a petrol pump will be made on his land.
  • The next step is you have to apply for the petrol pump dealership on the company’s website, in which you will also have to deposit a fee of Rs 10000.
  • After applying some company officials will come to you for checking the land and documents. If they all feel right then those people will pass your application.
  • You may also have to pay some bribe to open a petrol pump.
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Author

My name is Manoj Prasad and I am the founder of this website(Trendinwealth.com). I always love to learn new things through different sources and whenever I get time, I shared those new things with my friends, family and with you.

1 Comment

  1. Ashok Chaudhary Reply

    Very useful tips you have given in this topic.
    Always i like to read and learn this kind of knowledge.
    Thanks.

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