How to Start Petrol Pump Business in India – Willing to open a petrol pump station in India? Owning a petrol pump is one of the best business venture options nowadays. But getting its license from oil companies is not as easy as making a cup of tea! There are many formalities, guidelines and procedures to open a station. But don’t worry. You have searched the right page as we are going to provide you with complete information under one ‘roof’.
Requirements to open a petrol pump station in India : Following are the eligibility requirements for individual applicants:
- You must be an Indian citizen and a resident of India as on the date of affidavit.
- Age of individual applicant must be 21-55 years (except for Freedom Fighter under CC2 category).
- Minimum educational qualification required for rural ROs is 10+2 examination conducted by a Board/University. For candidates belonging to CC1 and CC2 category, minimum education required is Class 10th and Class 10+2 examination conducted by a Board/University for rural ROs and regular ROs respectively. However, this norm of minimum education is not applicable to freedom Fighters under CC2 category.
- Minimum fund requirement is Rs. 40,00,000 and Rs. 75,00,000 respectively for rural ROs and regular ROs. This fund can be in the form of savings accounts, deposits with bank/registered companies/postal schemes OR bonds OR shares of listed companies in Demat form OR mutual funds OR National Savings Certificates, etc. Please note that only 60% of the certified value of Shares, Mutual funds & Bonds will be taken into consideration for eligibility purpose.
- All applicants must possess suitable piece of land in the area mentioned in advertisement. You may either own it or have it on long term lease for minimum time period as specified in the notification.
Investment Requirement : To start a petrol pump, the applicant must show the ability to invest a minimum of Rs.40 lakhs in case of regular petrol pumps and Rs.75 lakhs in case of rural petrol pumps. The funds for investment can be in the following forms:
- Funds in savings accounts, deposits with Bank/Registered Companies/Postal Schemes
- National Savings Certificates, etc
- Shares of listed Companies in Demat Form
- Mutual Funds
Land Requirement: Land is a major criteria in the selection of petrol pump dealers. The applicants are first classified into two groups as follows:
- Applicants having suitable piece of land in the advertised location/area either by way of ownership / long term lease.
- Applicants having Firm Offer for a suitable piece of land for purchase or long term lease.
Disclaimer: The information provided in this article is accurate to the best of our knowledge. Any modifications can be made later by the companies. Readers are advised to use their own judgment skills.
Official websites :