Petrol Pump Business Plan

Eligibility Criteria for a Petrol Pump Business

Below are the eligibility criteria for running a petrol pump business in India

1. Citizenship – You need to be an Indian citizen

3. Prior experience in the petroleum sector is preferred, though this is not a mandatory requirement.

4. Capital – The applicant will need capital for construction, cost of land, and equipment. This is needed to start the business.

5. All required licenses and permits should be obtained from the relevant authorities before the commencement of the business.

Land Requirements for a Petrol Pump Business Plan in India

The minimum land requirements for a petrol pump business plan in India are as follows –

1. Minimum 1 acre of land

2. Land should be in the name of the applicant either as owner or on rent

3. The land should be located within 1 km of a national or state highway

License Fees for Petrol Pump Business in India

1. The applicant will need to get a license to operate a petrol pump business in India

2. The cost of the license depends on the type of fuel that will sell at the petrol pump

3. License for diesel will usually be cheaper than that for petrol

4. Separate licenses are needed to add fuels like CNG or LPG

5. The cost of a license also varies as per the state

6. Application fee is approximately Rs.1000 for retail outlets and Rs. 100 for rural outlets

7. The SC/ST/OBC category is offered a 50% discount on the application fees

8. There is a fixed fee that needs to be paid to run a petrol pump business in India. For owned land, the fee is Rs. 15 lakhs for regular retail outlets and Rs. 5 lakhs for rural retail outlets.

9. For a company-owned dealership, the fixed fee for regular retail outlets is Rs. 30 lakhs and Rs.10 lakhs for rural retail outlets.

10. The license fee, application fee, and fixed fee are non-refundable

How to Make a Petrol Pump Business Plan

1. Conduct market research - Before starting your petrol pump business, conduct market research to determine the demand for fuel in the area you are targeting. You should also research the competition and the pricing strategies of other petrol pumps in the area.

2. Obtain necessary licenses and permits - Obtain the necessary licenses and permits required to operate a petrol pump in India. This includes obtaining a No Objection Certificate (NOC) from the Petroleum and Explosives Safety Organization (PESO), obtaining a trade license from the local municipal corporation, and registering your business with the Registrar of Companies (ROC).

3. Secure funding - Starting a petrol pump business requires a significant amount of capital. You can secure funding from banks or other financial institutions by presenting a well-prepared business plan and financial projections.

4. Select a location - Choose a location that is easily accessible, has high traffic volume, and is not too close to other petrol pumps. Also, ensure that the land is suitable for constructing a petrol pump and has the necessary approvals.

5. Construct the petrol pump - Hire a contractor to construct the petrol pump and ensure that it meets the necessary safety standards and regulations. You will also need to install fuel dispensers, underground fuel storage tanks, and other necessary equipment.

6. Hire employees - Hire employees to operate the petrol pump, including cashiers, mechanics, and security personnel. Ensure that they are trained in safety procedures and customer service.

7. Develop a marketing strategy - Develop a marketing strategy to attract customers to your petrol pump. This can include advertising in local newspapers, offering discounts and loyalty programs, and promoting your business on social media.

8. Ensure compliance with regulations - Ensure that your petrol pump complies with all safety and environmental regulations. This includes regular inspections and maintenance of your equipment, proper disposal of hazardous materials, and adherence to safety protocols.

Leading Oil Market Companies OMCs

1. Oil and Natural Gas Corporation Limited (ONGC)

2. Indian Oil Corporation (IOC)

3. Bharat Petroleum Corporation Limited (BPCL)

4. Essar Oil Limited

5. Hindustan Petroleum Corporation Limited (HPCL)

6. Indraprastha Gas Limited (IGL)

7. Reliance Petroleum Limited

8. Shell India Private Limited, Essar Oil Limited, etc.