How to open CNG and LPG gas station in India? How much capital do you need and what are the other expenses?
What Is a CNG and LPG Gas Station
A gas station is a place where vehicles are refueled with petrol, diesel, gas, and other such substances. If you own a vehicle, you must know that the fuel is filled at a gas station.
Scope of CNG and LPG Gas station
Nowadays, everyone has their own vehicle and the number of vehicles is increasing day by day. Therefore, there is no loss in taking a gas station franchise and the scope of the gas station business is going to increase in the future. You can open a gas station in any state of the country because vehicles are used by people in every state. This means that the demand for commodities (LPG, CNG) sold through gas stations is present in every corner of the country. LPG and CNG gas are such commodities that the demand for them never decreases and it is only going to increase in the future. This means that the gas station business is only associated with profits.
Eligibility criteria for taking the franchise of a CNG and LPG Gas Station
- Only individuals between the ages of 21 to 55 are eligible to apply for an LPG gas station franchise.
- Different companies have different eligibility criteria for granting an LPG gas station franchise. For example, some companies only grant franchises to graduates, while others also consider individuals who have completed their 10th or 12th standard.
- LPG gas station franchises are only granted to Indian citizens in India.
- Priority is given to individuals who own land for opening a gas station.
Top fuel retailing companies in India and their websites
There are many companies in India that operate in the fields of CNG and LPG gas and offer dealership and franchise opportunities for their companies. Therefore, anyone who wishes to take a franchise or dealership of a gas station can contact these companies and open their gas station.
| Company Name | Website |
|---|---|
| Indian Oil | https://www.iocl.com/ |
| Bharat Petroleum | https://www.bharatpetroleum.com/ |
| Hindustan Petroleum | https://www.hindustanpetroleum.com/ |
| Reliance Petroleum | https://www.ril.com/ |
| Essar Oil | https://www.essar.com/ |
| Shell | https://www.shell.in/ |
| Total | https://www.total.in/ |
| Adani Gas | https://www.adanigas.com/ |
| GAIL Gas | https://www.gailgas.co.in/ |
How To Apply For a Franchise In a CNG and LPG Gas Station
The companies mentioned above advertise from time to time in newspapers about providing franchises and dealerships of CNG and LPG gas stations. You can also visit the official websites of these companies from time to time to obtain information related to franchises and dealerships.
Nowadays, companies also upload information on their websites along with newspapers. If the company provides any information about providing franchises of CNG and LPG gas stations and asks for an application to open an LPG gas station in your state or city, then you can apply. Remember that you can only apply for the franchise of an LPG gas station in the same place where you have a place to open a gas station.
Type of land required for this business
Starting a gas station business requires careful consideration of the location. Gas stations can only be opened in places located on major roads where there is a significant amount of vehicular traffic.
Most gas stations are franchised by companies that own the land. If you own your own land, you may be given priority by these companies. However, if there is any dispute over the land, you cannot open a gas station on that site.
If you are renting a space for your gas station, you will need to submit related documents. If you purchase the land, make sure it meets all the requirements for opening a gas station, such as the size and location of the property. For example, a light motor vehicle (LMV) gas station needs at least 700 square meters of space and a frontage of at least 25 meters. Heavy vehicles require at least 1,500 square meters of space and a frontage of at least 50 meters. Some companies require a minimum of 1,600 square meters of space and a frontage of 35 meters to open a gas station.
In conclusion, finding the right location is critical to the success of your gas station business. You need to carefully consider the size and location of the land before making any decisions.
Investment required for the business
Every CNG and LPG company has set a diverse amount for their franchise, so your investment relies on which gas company’s franchise you are taking. However, to open a gas station for any company, you will have to invest at least one crore rupees. Apart from this investment, you will also have to incur expenses on the salaries of employees, and licenses related to opening a gas station and promoting it. Therefore, when you prepare your plan for opening a gas station, include the expenses that will come with a one crore rupee investment as well as other expenses.
Licenses and permits required to start a CNG and LPG gas station
Before opening a gas station in any country, it is necessary to obtain permission from the government and obtain licenses related to opening a gas station. Therefore, you can only open a gas station when you have all the necessary licenses related to it.
To obtain licenses related to opening a gas station, you will have to submit an application to the authority that grants such licenses. After that, if you meet the standards set for obtaining a license, you will be granted a license. Along with obtaining a license, you will also need to obtain permission from your state’s municipal corporation and fire safety office to open a gas station.
Gas Station Construction
After obtaining all the licenses related to the gas station, you can start the construction work of the gas station. You will have to build the gas station building according to the company from which you have taken the gas station franchise.
To build the gas station, you can hire a building company or builder and give them the contract to build the gas station.
There are several precautions that need to be taken when building a gas station, Tanks and pipeline lines need to be fitted into the ground to fill the gas, and if there is any deficiency in their construction, gas may leak. Therefore, you should only give the responsibility of building the gas station to a good company.
Safety Measures
There are various precautions that need to be taken for the safety of a gas station, as there are items present that can easily ignite a fire. Even a small spark can cause a fire at a gas station. Therefore, it is essential to install fire extinguishers at gas stations, so that if there is ever a fire, you can control it with the help of a fire extinguisher.
A sign or board should be placed at the gas station, warning people not to use items such as matchboxes, lighters, etc. so that people are aware that they cannot use these items at the gas station.
Before refilling a vehicle’s tank with fuel, ensure that the engine of the vehicle is turned off, as there is always a risk of a fire igniting when fuel is poured into a running engine.
Do not install any type of electricity board or meter near a gas station, as sparks can occur in electricity boards or meters, which can ignite a fire.
Regularly inspect the electrical equipment at the gas station with the help of an electrician. This ensures that if any equipment is faulty, it can be fixed in a timely manner, as faulty equipment can also pose a risk of a fire igniting.
Insurance of the Gas Station
It is very important to get insurance for your gas station, so you should also get your gas station insured by a good insurance company. If a fire breaks out at your gas station or if your gas station incurs any other damages due to some other reason, then you will receive money from your gas station’s insurance. This will help you cover your losses.
Marketing And Promotion of the Gas Station
To make people aware of your gas station, you need to take the help of promotions, and you can use various promotional tools to promote your gas station, such as:
Through a website – You can create a website for your gas station and provide information about the gas available at your gas station. With the help of a website, you can easily connect with more and more people.
Through Google Maps – In addition to advertising, Google Maps is also a good option. As people search for things near them through Google Maps, they will be able to find information about your gas station.
Through banners and posters – You can also promote your gas station through banners and posters, which can be created by a banner-making company. You can put up these banners on the roadside and provide information about your gas station to people.
Apart from these, there are many other ways of marketing that can be used to promote your gas station.
Conclusion
Understand the franchise model of CNCG and LPG gas stations and consider taking a franchise from a reputable company. Before starting a gas station, prepare a business plan related to this and make sure to learn about all aspects of the business related to CNCG and LPG gas stations. This will help you avoid any difficulties in the future.