The process of Petrol Pump opening : Eligibility Criteria

For  opening of a Petrol/Diesel Pump in India a person has to fulfill the following eligibility criteria employed by public sector /private sector is as under-----

The First Step of the process of Petrol Pump : Eligibility Criteria:-

1. The applicant must be an Indian citizen and if he/she is Non-Resident Indian, i.e. NRI then he must live in India for at least 180 days before applying for a petrol pump or retail outlet.

2. The age of the applicant should be between 21 and 55 years (some relaxation for freedom fighters’ family).

3. The applicant shall enclose a photocopy of the 10th mark sheet as proof of date of birth.

4. The applicant of the SC / ST, / OBC category shall have a 10th pass, while for the general category, he/she must have a 12th pass.

5. Applicant must be graduate if he/she wants to open a petrol pump in urban areas. 

.  The criteria of minimum qualification is not applicable in the case of freedom fighters.

Second Step of the process;

If somebody gets clearance in the first stage, then he/she enters the second stage.

Minimum Fund requirement;

Exact expenditure on petrol pump opening can’t be the same throughout the country. But generally, the applicant will have to spend minimum Rs 15 to 20 lacs to open a petrol pump in rural areas while for urban areas this cost may be around Rs 30 to 35 lacs.

At the same time, it should also be kept in mind that these rupees should be in this form; Apart from Jewellery and cash, the money can be in the form of;

1. Mutual Funds

2. Bonds

3. Saving accounts, deposits with banks / Postal Scheme/Registered Company

4. National Saving Certificates

5. Share of listed companies in Demat account

Investment and Fees

To open a petrol pump business, you must have a good investment capacity to start with. There are two types of charges for opening petrol pumps in India:

Rs 12 lakhs for ROs for rural areas and Rs 25 lakhs for ROs in urban areas, though the amount may vary from company to company.

Your funds will be acceptable in the below modes:National Savings Certificates  BondsShares of listed Companies in Demat Form  Mutual funds  Savings account funds  Bank deposits

Cash, jewellery, and the current account balance will not be considered for investment in this business.

Land Requirement for Petrol Pump:-

The applicant should have landed in the concerned area or he/she can take it on lease for a minimum time period ( as mentioned in the notification). 

Note: The applicant has to produce some documents to prove the ownership of the land.

The location of the petrol pump is very crucial for oil marketing companies. Companies prefer the that are near residential locality, busy market areas or on the state/national highway because they want to increase sales.

Normally, an area of 800 square meters to 1200 square meters is sufficient to open a gasoline pump. ग्रामीण क्षेत्रों के लिए, संपत्ति की न्यूनतम लंबाई और चौड़ाई कम से कम 35×35 मीटर होनी चाहिए।

Land should be preferably leveled, more or less at Road level, in one contiguous lot. The plot should be free from overhead high Tension power line, product/water pipeline / canals / drainage / nullahs / public road / railway lines, etc.

Application Fees for Petrol Pump

The application fee is Rs.1000/- for regular retail outlets and Rs.100/- for rural retail. The applicants belonging to SC/ST categories can get a 50% concession on the application fee.

The application fee is Rs. 100 for petrol pumps in rural areas and Rs. 1000/- for other retail outlets.

Note: The applicant can apply only for one location, I.e. either rural or urban area.

Fixed fee for retail outlets:- 

If the applicant owns land in the concerned area, he/she has to pay Rs. 5 lakhs for rural retail outlet and Rs. 15 lakhs for a regular retail outlet. This fee is non-refundable for both locations.

How to Apply for a Petrol Pump Dealership:-

Generally, the Oil Marketing Companies (OMCs) give advertisements in the newspaper or on their website to set up petrol pumps at various locations in the country.

Interested candidates can apply online for a license to open a petrol pump in the desired state/city/region.

If the oil marketing company receives a large number of applications, then it announces the name of the winner through the lottery system. The winners of the lottery have to submit the related documents to the oil company.

Note: After getting the license for the petrol pump, the applicant will have to get the GSTIN number to pay GST and open a current account in the name of the petrol pump.

So in this way, you read that the applicant has to go through a very complex process to get the license for a petrol pump. If an applicant becomes eligible for the petrol pump, then he needs a lot of money, which is not an easy task for every person. But if the applicant gets the license; it’s a win-win situation for the coming generations too.

The franchisee needs to obtain statutory clearances, NOCs, and permissions such as explosives licenses, retail sales licenses, sales tax registrations, etc. in the name of Nayara Energy.

It is profitable to own a petrol pump. As we all know, a petrol station is open 24 hours a day, seven days a week, and you may easily make a profit of 2 to 2.5 rupees per litre on petrol and ₹1.80 to 2.40 rupees per litre on diesel. The profit ranges from ₹1 to 2 lakh rupees per month.