petrol pump business, How to start petrol pump business

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The petrol pump business has always helped to be one of the leading profit-making businesses, not just in India, but globally as well. This is largely because of the ever-increasing growth and resultant demands of the transportation and logistics sector.  Another obvious reason being the growing demands of the daily commute of the common man. Besides, in today’s day and age, it has almost become a necessity for a middle-class person to own a vehicle to ensure his comfort and convenience in day to day life.

In India companies providing  Petrol and Diesel dealership are as follow

  1. Hindustan petroleum corporation Ltd.
  2. Bharat petroleum corporation Ltd.
  3. Indian oil corporation Ltd.
  4. Reliance Petroleum Ltd.
  5. Essar Oil Ltd.

if you want to apply for petrol and diesel pump here are some Important website links for applying for licenses in India:


Petrol is smooth-running business in India. due to huge population transportation business is big in India and because of this reason petrol and diesel business is running power full

what is the petrol pump starting procedure?

  1. land required 1200 to 1800 square meters of land near a national highway or state highway
  2. Also, a minimum of 60 lakh Rs required to start a business
  3. You should have an Indian Citizen.
  4. Your age should be between 18 to 60 years old.
  5. You must have completed your 10th or 12th standard with valid board exams.

petrol and diesel pump idea is profitable

Lets have a look at dealer’s profit margin:- Generally profit margin for diesel is Rs 1.8 for selling 1 litre of petrol and Rs 1.2 for selling 1 litre of diesel. As you can see that this is low margin business and one can generate good profit per month by having a nice location for his/her petrol pump. Also, this profit margin varies for every dealer.

Final profit in this business depends on various other factors such as:-

  • Monthly rent to landowners if its rented property
  • Staff salary
  • Electricity bill
  • Fuel transportation expenses and loss of petrol in transportation
  • Maintenance and accounting expenses

Can we get funds from the bank for the petrol business?

Digital NBFCs are the revolutionary way of getting a business loan.

  • Large range of loan amount: Business loans of up to Rs. 2 crores are availed of. Smaller business amount loans of Rs. 50,000 are also available. A bigger loan amount would be enough to get the petrol pump started also be enough for working capital.
  • Short processing time: loan processing time is really quick. The applicant doesn’t have to wait for months on end to get the loan approved and in your account.

If you are thinking to start a petrol business, what are the chances of success?

Fuel is one of the very few commodities that you buy without looking at what you are actually buying (in comparison to say cloth, groceries etc.) The pump attendant shoves the nozzle in your car; you see the metre reading go up, something happens and the nozzle is taken out. You pay and you drive away. It all works on trust.

But for each litre of fuel that you purchase, you eventually are dispensed much lesser than 1000ml.

Meanwhile, Most Indian Petrol Pumps have underground tanks of 20000-litre capacity. There could be a number of such tanks depending on the number of products on offer and the space available underneath the pump area.

What investment required to start a petrol pump business?

To open a petrol pump in rural areas, the applicant needs to have funding of a minimum of Rs. 15 – Rs. 20 lakh. Whereas, for opening petrol pump in urban areas the investment amount can go up to Rs. 30 – Rs. 35 (if the land is self-owned). Besides cash and jewellery, an applicant can use the below-mentioned types of fund for opening a petrol pump:

  • Bank deposits
  • Bonds and shares
  • Fixed Deposits
  • Mutual Funds
  • National Saving Certificates
  • Postal Scheme
  • Saving accounts

What planning required to start a petrol pump business?

To open a petrol pump business, you should also have a good investment capacity to start with. There are two types of charges for opening petrol pumps in India:

  1. Rs 12 lakhs for ROs for rural areas and Rs 25 lakhs for ROs in urban areas, though the amount may vary from company to company.
  2. Your funds will be accepted in the below modes:
    1. National Savings Certificates
    2. Bonds
    3. Shares of listed Companies in Demat Form
    4. Mutual funds
    5. Saving account funds
    6. Bank deposits
  3. For example, Cash, jewellery, current account balance will not be considered for investment in this business.


From the above information, we come to know about the profitably in this business,

Now, why worry!

Clink on the link below for training….

hence, for more details you may also visit respected companies website given above .

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