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 2020. After this, the number of petrol pumps in India will double.
The petrol pump is a long-established business in India. And the business is also a lucrative venture for small business entrepreneurs.
Now you can see the business model has changed to a certain extent. The fuel station also offers other value-added services to the consumers. Local demographics is something on which the entire business depends.
Starting a petrol pump is not that much easy. Availability of Locations with sufficient space for operation. Additionally, there are several conditions that you must comply with. Let us these conditions in detail.
How to Start a Petrol Pump Business
If you are having a question, how to start a petrol pump business? Here is the answer in this article; Petrol pump firms have always been thought of as one of the primary profit making companies, not only in India but internationally too. This is largely due to the ever-increasing expansion and consequent requirements of their transport and logistics industry. Another obvious reason being the rising needs of the everyday commute of the frequent man. In any case, in the current day and age, it’s become a ness city to get a middle-class individual to get a car to make sure his comfort and advantage in day to day life.
Petrol Pump Business Plan
If you are planning to start Petrol Pump then you have to draw Petrol Pump Business Plan. here we have given a detailed business plan.
1) First of all, you have to check how much money you have available, it’s fine
2) Check the location on the official site and find which location has listed on your area.
3) Buy land or 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 or you can be a DODO Business(Dealer Owned Dealer operated)
5) After that, the company officer will come for inspection and check your land, documents, and location. For DODO the next step is getting Licenses.
#1. Petrol Pump Investments
Petrol Pump Investments? This is a very important question that wants to start this business. In India, there are only 3 conditions to start a petrol pump.
Investment Required to Start Petrol Pump
What is the investment required to start petrol pump? To start a gas pump, the applicant must demonstrate the capability to commit a minimum of Rs.25 lakhs in the event of regular petrol pumps and Rs.12 lakhs in the case of rural gas pumps.
Money in savings accounts, deposits with Bank/Registered Companies/Postal Schemes It’s important to note that cash, jewelry, etc. for which possession cannot be established will not be considered. Additionally, the balance in the account won’t be considered. For shares, mutual funds, and bonds, just 60% of their value will be considered. Obtain the valuation certificate for the resources from a Chartered Accountant.
- You should have an Indian Citizen.
- Your age should be between 18 to 60 years old.
- 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.
Investment Required to Start Petrol pump
In this Business, you should have a convenient investment capacity initially. There is a need of around a cash of 50-60 Lakh.
You should have the ability of a minimum Rs 25 Lakh in the case of a normal pump and Rs 12 Lakh in the case of rural petrol pumps.
Some forms of Investments in Funds which are Acceptable:
- Funds in savings accounts, deposits with Bank/Registered Companies/Postal Schemes
- National Savings Certificates, etc
- Shares of listed Companies in Demat Form
- Mutual Funds
It’s important to note that cash, jewellery, etc. for which the owner will not be establishing and will not be considered.
The current account balances will not be considered. For shares, mutual funds and bonds, only 60% of the value will be considered. The valuation certificate for the assets must be obtained either from a Chartered Accountant.
There are two types of Dealer who handles the Business
- Company Owned Dealer Operated (CODO)
- 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.
So if you have at least Rs 60 lakh, then you can easily start a petrol pump business and apply for it.
#2. Petrol Pump Requirement
If you want to start a petrol pump on a state highway or a national highway, then you should have look requirements 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.
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.
#3. How to Apply for Petrol Pump Licenses
The First step is to look for the release of an open advertisement by the petroleum company.
Commonly the companies publish the advertisements in all leading newspapers and on official websites of the concerned company.
You will be getting the whole information from these advertisements or notifications about the location/s where the company proposes to set up a petrol pump.
Now if you are surely ready for business then apply for the license for the opening petrol pump in the desired state/ city/ town/ area.
Important website links for applying for the licenses in India:
Now see for the product from where you will get it:
Further companies petrol pump dealership all over India and selling petroleum product in India
Related Business Ideas
5 Petrol and Diesel dealership in India:
- Hindustan petroleum corporation Ltd.
- Bharat petroleum corporation Ltd.
- Indian oil corporation Ltd.
- Reliance Petroleum Ltd.
- Essar Oil Ltd.