The number of vehicles in the country has increased tremendously. Owning one or two vehicles in every household is now commonplace. Consequently, the demand for petrol and diesel is also steadily increasing. If you want to start your own business, opening a petrol pump can generate a good income. A minimum investment of ₹15 lakh is required to open a petrol pump.
Opening petrol pumps is the responsibility of petroleum companies. They issue licenses. They periodically issue advertisements for opening petrol pumps in new areas. Government and private oil companies such as BPCL, HPCL, IOCL, Reliance, and Essar Oil issue licenses for petrol pump dealerships in the country.
Eligibility Criteria for Opening a Petrol Pump
Certain eligibility criteria must be met to open a petrol pump. The applicant must be at least 21 years old and at least 60 years old. Regarding educational qualifications, applicants from the General category must have passed 12th grade. Applicants from SC/ST/OBC categories must have at least passed 10th grade. If you want to open a petrol pump in urban areas, applicants must be graduates. It’s also important to note that only Indian citizens can open a petrol pump.
How much land is required for a petrol pump?
To open a petrol pump, you need 1,200 to 1,600 square meters of land. You can start this business on your own land or on rented land, but the land must be located on a highway or main road as per the company’s standards.
How much does it cost to open a petrol pump?
The cost of opening a petrol pump depends on the area where you’re opening it. If you’re opening a petrol pump in a rural area, you must have a minimum balance of ₹12 lakh in your account. However, if you’re opening a petrol pump in a city or town, the cost can reach up to ₹25 lakh. This cost includes expenses such as license fees, infrastructure, and deposits.
Process of Obtaining a Petrol Pump License
Whether in a city or village, it’s mandatory to obtain a license before opening a petrol pump. You need a license from various government and private petroleum companies. You can apply for a petrol pump dealership online by visiting the official websites of oil marketing companies. Alternatively, you can contact the relevant Indian Oil Retail divisional office/field officer regarding opening a petrol pump. Companies issue advertisements, after which dealerships are allotted through a lottery system or bidding.
The Mathematics of Commission and Earnings from a Petrol Pump
Opening a petrol pump doesn’t earn you a salary, but rather a commission. Your commission is determined by the amount of petrol and diesel you sell each day. Diesel saves you ₹1.5 to ₹2 per liter, while petrol earns you ₹2 to ₹3 per liter. The more petrol and diesel you sell, the more you earn. Factors that directly impact your monthly income include location, number of customers, and daily sales.