How to start Petrol Pumps? It is a profitable business ideas

How to start petrol pumps in India means what are the process of license clearance. The government has imposed certain rules and regulations to ensure transparency in the allocation of petrol pumps in the country.

how to start petrol pumps

In this selection process, two rounds of selection should made.

Only if someone qualify for the first round, he / she is allow to participate in the second round.

In this article we publish detailed information about the whole process of opening a new petrol pump in India.

For start petrol pumps in India need some eligibility

How to start petrol pumps in India is question so the first step is eligibility for the start up. We give what are the eligibility in the business of petrol pump in India are below.

  1. Applicant must be an Indian national and stay in India for at least 180 days if he / she is a non-resident Indian and is an NRI.
  2. The age of the applicant must be between 21 and 55 years (the applicants are excluded from the freedom fighter category).
  3. To provide proof of age, the applicant should enclose the photocopy of the 10th mark sheet.
  4. If an applicant resides in the village and belongs to the SC / ST / OBC category, it is necessary to pass the 10th, but the applicants in the general category must be the 12th pass.
  5. If someone wants to open a petrol pump in urban areas, he / she must graduate.
  6. In the case of freedom fighters, the minimum eligibility criteria do not apply.

Somebody clear the first step or eligibility then the second step is investment and place of investment.

Investment for Start up petrol pumps in India

In this business, you must have a strong investment potential at the start. Minimum of  50-60 lakhs is required.
 For a typical pump you should have at least Rs 25 lakh and to start for rural petrol pumps at lies Rs 12 lakh.

Land check up for start up

Land is the main criterion for selecting petrol pump dealers.  The applicant must have a piece of land in the area or you can lease it for at least the time (indicated in the notification). 

The applicant has to produce a variety of documents to prove ownership of the land.
 Oil marketing companies inspect the location before petrol pumps are allowed.  Companies want to see if the location helps them generate more sales or not.

Financial capability

To ensure your financial capability is compulsory for eligible your business. If you have much cash or jewels will not consider prove your capacity through below criteria.

1. Bonds

2. Mutual Funds

3. Saving accounts, deposit with banks or Registered Company or Postal Scheme

4. National Saving Certificate

5. Share of listed companies in demat account

Only 60% of the value of Mutual Funds, bonds and shares will be considered for eligibility criteria.

Two type of dealership is there

  • Company Owned Dealer Operated (CODO)
  • Dealer Owned Dealer Operated (DODO)

In a company-owned dealership, the sole land is yours and the company will cover all investments and expenses.  You don’t have to spend much on this.
 At a dealer-owned dealership, all your investments, expenses, and land will be yours.  Accordingly, to open a petrol pump, you need to have Rs 60 lakh to Rs 1 crore.

Apply for petrol pumps license

Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited are the major diesel and petrol dealers in India. 

These companies distribute petrol pumps to dealers across India and sell petroleum products.

 This article focuses on how to get a petrol pump license in India, what process needs to be completed and how much investment is needed to open a petrol pump.

Most important petroleum companies web link

Hindustan petroleum corporation limited

Bharat petroleum limited

Essar petroleum

Indian oil corporation

The application fee is Rs 1000 for regular retail stores and Rs 100 for rural retailers.  SC / ST candidates will get 50% discount on application.
 The applicant must pay the application fee through the Demand Draft.  The application fee is non-refundable.  An applicant can apply for only one place.
 If the land is owned by the dealer, applicants will have to pay a fixed fee of Rs 15 lakh for regular retail outlets and Rs 5 lakh for rural retail outlets.

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