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One of the most profitable ventures in India is the petrol pump business, especially when it’s located near a highway or in a busy city. With the growing demand for vehicles, the petrol pump industry might witness further revenue in future. Therefore, opening a petrol pump business in India can be a promising opportunity for you. Want to find out how to open petrol pump? Then, this article is for you. We’ll explain to you how to open a petrol pump in India from scratch, and guide you through the license and documents required for setting up a petrol pump.
Those fulfill the requirements mentioned below can open petrol pump in India:
Applicant must be minimum 21 years of age & maximum 55 years of age
The applicant must be an Indian citizen. If the applicant is an NRI, they must have stayed in India for more than 182 days
They must have birth certificate proof i.e., 10th class mark sheet
For the General category, the applicant should be 12th pass. However, for SC/ST/OBC category, the applicant should be at least 10th pass
The applicant should be a graduate for starting a petrol pump in an urban area.
For freedom fighters who fall under the CC2 category, there is no minimum education criteria.
In case of self-owned land, the minimum investment amount is Rs. 12 – Rs. 15 lakh for dealerships in rural areas.
In case of self-owned land, the maximum investment amount is Rs 20 – Rs. 25 lakh for dealerships in urban areas.
Business area/location chosen for opening a petrol pump should not be in blacklisted or excluded zones.
The applicant should not have a criminal record, and not be a defaulter in any business loan.
Starting any kind of business, even buying a petrol pump dealership, requires some money. The amount of funds you spend on starting a petrol pump will have a big impact on how successful your business will turn out to be in the future. In addition to cash, the following sources may provide possible funding for opening a petrol pump:
Saving accounts
Bonds and shares
Fixed deposits
Mutual funds
National Saving Certificates
Postal saving schemes
Bank deposits
You must carefully choose the land where you want to open petrol pump. Based on the type of petrol pump you want to set up, the land requirements vary. A petrol pump in an urban area has different requirements from that of a petrol pump on the national highway or rural retail outlet (RRO).
The land requirement for opening a petrol pump in a rural area is 800 square meters for a single dispensing unit and 1200 square meters for two.
The amount of land needed to open petrol pump in an urban location is 500 square meters for a single dispensing unit and 800 square meters for two.
1200 square meters for a single dispensing unit and 2000 square meters for two dispensing units is the minimum land requirement for opening a petrol pump on a national highway.
Make sure that while you choose your land, you opt for a land that is located strategically and the vehicles can easily access it. Moreover, you must ensure the land complies with the regulations of the oil marketing company you want to associate with.
In addition to this, you must have all the necessary documents available for land, such as land ownership or lease agreement, which are required to be submitted during the application process for petrol pump business.
Make sure you acquire all the required documents for opening a petrol pump business. These requirements documents are mentioned below:
A Valid License from an Oil Marketing Company
A No Objection Certificate (NOC) from the Fire Department
An NOC from the Pollution Control Board
A trade license from the Municipal Corporation
An electricity connection and a water supply connection
Insurance for your petrol pump station premises and equipment.
Obtaining a petrol pump license is a mandatory requirement for opening a petrol pump. For this, oil marketing companies give out ads on their official website or newspaper to open petrol stations across different locations in India.
The following steps must be taken by interested candidates: purchase an online form for Rs 100 (rural areas) or Rs 1000 (urban areas), fill it out accurately with information about personal ID, mark sheets, and land details, and upload the necessary documents on the website of the selected oil firm. Following license approval, the applicant must open a current account in the name of their gas station and receive a GSTIN in order to pay GST.
Additionally, the candidate must obtain a PESO license for their petrol filling station. This license is issued by the Petroleum and Explosives Safety Organization. PESO is a mandatory licensing program for the oil and gas industry in India. By obtaining a PESO license, the applicant will ensure compliance with the regulations of the Petroleum and Explosives Safety Organization.
You might want to avail business loans for setting up or managing your petrol pump business. Many banks and NBFCs can provide you a business loan, but you must opt for such a loan from a financial institution that offers low interest rates.
It is an attractive business opportunity to open petrol pump in India. However, you must plan carefully, do your research and ensure your compliance with rules and regulations of the Government and Oil Marketing Companies. Make sure your petrol pump is located at a place which witnesses good traffic and that you have all the required licenses and permits.
If you need assistance in obtaining a PESO license, connect with Registrationwala consultants. We’ll help you to get this license from the Petroleum and Explosives Safety Organization effortlessly.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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