Petrol Pump: Many people dream of owning a business that offers steady income and fast returns. If you have ₹50 lakh to invest and are looking for a smart business idea, opening a petrol pump could be the game-changer. This investment model has the potential to recover the entire capital in just one year while earning a monthly profit of ₹6 lakh, making it a highly rewarding opportunity.
How Petrol Pumps Generate Income
A petrol pump earns through commissions on every litre of fuel sold. Currently, the commission is around ₹3.50 per litre. For example, if a petrol pump sells 4,000 litres daily, it can generate ₹14,000 in daily earnings. Over 30 days, this results in an income of ₹4.2 lakh. With higher sales, monthly earnings can go up to ₹6 lakh or more. Regular traffic and location are key factors influencing sales volume and profit.
What Are the Investment Requirements
To set up a petrol pump, a minimum investment of ₹50 lakh is usually required. This includes land, infrastructure, and necessary equipment. If the land is already owned, costs can be significantly reduced. Oil companies like HPCL, BPCL, and IOCL issue advertisements inviting applications for setting up petrol pumps in selected areas. A non-refundable application fee and security deposit may be applicable depending on the location and company guidelines.
How Long Does It Take to Recover Investment
The business model ensures that the initial investment of ₹50 lakh can be recovered within 12 months if daily sales reach 4,000 to 5,000 litres. Consistent monthly profits of around ₹6 lakh allow quick recovery. Beyond the first year, most of the income becomes net profit, leading to long-term financial gains.
Government Support and Licensing
Petrol pump businesses require licenses and approvals from the concerned authorities, including NOC from local departments and explosive safety certificates. The government supports entrepreneurs through various schemes and sometimes offers priority to certain categories like ex-servicemen, SC/ST applicants, and women.
Tips for Choosing the Right Location
Success largely depends on where the petrol pump is located. Highways, busy roads, and industrial zones tend to bring more customers. It’s important to survey the area for traffic volume, competition, and accessibility before applying. A strategically chosen location can double daily sales, pushing profits even higher.
