The petrol pump business is undoubtedly one of the most profitable ventures both in India and abroad. As a result, many individuals are willing to invest in this business, but they lack the knowledge to do so. To open a petrol pump in India, you need to obtain a license and franchise from public and private sector oil marketing companies (OMCs).

Here are some of the major companies you can apply to open a petrol pump:

How to apply for petrol pump dealership in India?

If an applicant wants to know how to apply for a petrol pump, here are some basic steps to apply online:

Step 1: Visit the official portal of Petrol Pump Dealer Selection.

Step 2: Click on the “Register Now” option on the homepage and fill a form to create an account.

Step 3: Log in with your personal ID and password and click on “Available Advertisements” on the dashboard.

Step 4: Select the name of your desired company and the local state.

Step 5: Choose the nearby area and click on “Apply Now”.

Step 6: You need to select “Individual” or “Partnership” from the drop-down box.

Step 7: Provide all the required details, upload a photo and signature, and click on “Submit”.

Step 8: Finally, you will be redirected to the payment gateway, where you need to pay ₹10,000 to complete the process.

Who is eligible to open a petrol pump in India?

People thinking of opening a petrol pump must meet the following eligibility criteria to qualify –

The applicant must be an Indian citizen with a valid identity card.

If the applicant is an NRI or Non-Resident Indian, he must have resided in India for at least 180 days before applying for a petrol pump.

The applicant must be between 21 and 55 years of age.

Where to apply for a petrol pump business license?

The process of applying for a license to open a petrol pump is easy and can take less than two days.

First of all, the applicant has to visit the official website of the oil marketing companies, or they can refer to newspapers where OMCs usually advertise to set up petrol pumps in various locations.

Here is a step-by-step guide to get a petrol pump license -

Step 1: They have to buy a form for ₹100 for rural areas and ₹1000 for urban areas and fill in all the details.

Step 2: Applicants have to upload all the required documents on the official website of their chosen oil company.

Step 3: After getting the license, the applicant has to obtain a GSTIN number to pay GST and open a current account in the name of their petrol pump.

What is the license fee for petrol pump business in India?

Any operator wishing to start a petrol pump business in India must obtain a license. The price of the license varies depending on the type of fuel sold through the petrol pump. Generally, the license fee paid for diesel is cheaper than that for petrol.

Separate licenses are required for selling other fuels such as CNG or LPG. The fee also depends on the state and the choice of the type of license.

The fee to apply for this license has been estimated at ₹1,000 for urban areas and ₹100 for rural areas. SC/ST/OBC categories are charged 50% on the application fee.

To run a petrol pump business in India, a certain amount is required as capital. For owned land, the fee is ₹15 lakh for regular retail outlets and ₹5 lakh for rural retail outlets.

In case of a company-owned dealership, the prescribed fee is ₹30 lakh for regular retail outlets, and ₹10 lakh for rural retail outlets.

Minimum Land Requirement for Opening a Petrol Pump

Petrol companies generally release advertisements about the approved land locations.

So, a person must ensure that his land falls in that category before applying.

So, an applicant interested in getting a petrol pump dealership must fulfil the following land criteria –

Applicants must either own the land or lease it for an agreed period by the oil dealership.
This land must be easily accessible and must be developed and levelled.
All legal documents of this land must be present for the verification process.
Depending on its location, this land area must be at least between 800 sq m to 2000 sq m.