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

If you are interested to start your own petrol pump business, then this can be a golden opportunity for you. Because petrol pump companies have set a target to open 65000 petrol pumps by the end of 2019. After which the number of petrol pumps in India will double.

What is the Eligibility To Start A Petrol Pump In India?

This is a very important question who wants to start this business. In India, there are only 3 conditions to start a petrol pump.

  1. You should have an Indian Citizen.
  2. Your age should be between 18 to 60 years old.
  3. You must have completed your 10th or 12th standard with valid board exams.

So, you must have the above 3 requirements if you want to start a petrol pump business in India.

How Much Land Will be Required To Open a Petrol Pump?

The most important thing to open a petrol pump is Land. If you do not have any land in your name, then you can also take land in lease. For this, you have to get a No Objection Certificate(NOC) from the owner of the land, which means that your owner has no objections to open petrol on this land.

Even if your land is in the name of a family member, you can still apply for a petrol pump dealership.

If you have agricultural land, first you have to convert that land into the land to start a petrol pump. After that, you can easily apply for a petrol pump dealership.

If you want to start a petrol pump on a state highway or a national highway, then you should have at least 1200 to 1800 square meters of land. And if you want to open a petrol pump in an urban area, then you must have at least 800 square meters of land.

How to Apply Dealership For Petrol Pump Online

  • To apply a petrol pump business online, you have to visit a website called petrolpumpdealerchayan.in.
  • After that click on the Register Now button, fill the form, and create your account.
  • Login again by entering your email id and password after successfully creating your account.
  • On your dashboard, a button Available advertisement will be shown in front of you.
  • After clicking the Available Advertisement button, select the company name and state where you want to open a petrol pump.
  • Now you will be able to see which place the company wants to open the petrol pump in your selected state.
  • Choose your nearest area where you want to open the petrol pump and click on the Apply Now button.
  • Now you will be given 40 minutes to fill the form. I will recommend you to read the Brocher before applying.
  • Select Individual or Partnership radio button. You will be asked to pay a fee of Rs.10,000.
  • After that fill your personal information carefully, upload your photo and signature and click on submit button.
  • After that, a payment page will be open where you can pay the fee amount through your debit card, credit card or net banking.

How to Apply Dealership For Petrol Pump Offline

If you don’t want to apply for the dealership online then you can directly contact the company offices. Here all the Divisional Offices/Territory Offices/Regional Offices are listed. Select the company from the dropdown menu.

You will get the company name, divisional office, address, contact number, and state. So you can also directly call on the contact number and tell them that I have land and I want to apply for the dealership for your company.

Therefore, this is the way where you can directly apply for a dealership.

How Much Money Require To Start A Petrol Pump

I talked to the owner of a lot of petrol pumps, but no one has told me openly that I can tell how much money exactly needs for starting a petrol pump business. But after talking to them, I came to know that there are two types of petrol pumps.

  1. Company Owned Dealer Operated (CODO)
  2. Dealer Owned Dealer Operated (DODO)

In Company Owned Dealer Operated, the only land will be yours and all the investments or expenses will be done by the company. You don’t have to spend much on this.

In Dealer Owned Dealer Operated, all your investments or expenses and land will be yours. Accordingly, to open a petrol pump, you should have between 60 Lakhs to 1 Crore rupees. You may also have to give bribe someone to start a petrol pump business. Due to which this expenditure can increase to about 1.5 crore rupees.

So if you have at least Rs 60 lakh to 1.5 crores rupees, then you can easily start a petrol pump business and apply for it.

Also See: 5 Pro Tips To Invest In a Mutual Fund

How much Money Can You Make From A Petrol Pump Business

All income comes on petrol pump business is on a commission basis. In this, you don’t get any salary from the company. You get a commission on the liter you sell petrol or diesel.

I went to many petrol pumps and talked about it, but everyone told me different commission rates on petrol and diesel.

But if I take out an average, then you get a commission of Rs.3 for selling 1 liter of petrol. While selling 1 liter of diesel, you get a commission of Rs.2.

So according to this, if you sell 70,000-liter petrol and 150,000-liter diesel in 1 month then you can make an income of Rs.422,000.

Income Breakdown(Prediction)

Petrol: 50,000×Rs.3 = Rs.150,000

Diesel: 150,000×Rs.2 = Rs. 300,000

Gross Income = Rs. 450,000

Total Expenditure = 100,000 (Including Maintainance and Staff Salary)

Net Income: 450,000 – 100,000 = Rs. 350,000

This is when you sell only 50,000 liters of petrol and 100,000 liters of diesel. But if you sell more than this, your income also becomes very high.

What Should Be The Steps To Start A Petrol Pump Business

  1. First of all, you have to check how much money you have available. If you have 10 million or more, it’s fine. But less than that, you should start this business in partnership.
  2. Check the location on the official site which is Petrolpumpchayan.in and find which location has listed on your area.
  3. Buy land or took the land on lease. Don’t forget to take NOC from the owner of that land.
  4. Now apply for a dealership on the company website and pay the fee of Rs.10000.
  5. After that, the company officer will come for inspection and check your land, documents, and location.

Manoj Prasad

My name is Manoj Prasad, founder of Trendinwealth.com and Trendinwire.com. I graduated in Information Technology from Mumbai University. I always try to learn new things in the Tech field, Business, and Finance. Wherever I get experiences and knowledge, I keep trying to share with you.

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