How to Start a Petrol Pump Business in India [2023 Guide]

How to start a petrol pump business in India, establish a petrol pump in your own name, company dealership, investment, profit, license, registration, marketing, and all.

If your dream is to become the owner of a petrol pump, then it is the right time to start. The desire of people who establish petrol pumps can be fulfilled very soon. At present, many private oil companies are starting approximately 5,000 new petrol pumps across the country.

How to Start a Petrol Pump Business in India

How to Start a Petrol Pump Business in India

  1. Company Dealership: You need to decide which oil company you want to take the dealership from. You can choose from major oil companies such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
  2. Investment: You need to have sufficient funds to start the business. The investment required can vary depending on the location and size of the petrol pump.
  3. License: You need to obtain a license from the Petroleum and Explosives Safety Organization (PESO) to start a petrol pump in India. You also need to obtain other necessary licenses such as the Trade License, Fire Safety Certificate, and Pollution Control Certificate.
  4. Location: You need to select a suitable location. The location should be easily accessible and visible to motorists.
  5. Registration: You need to register with the local authorities and obtain all necessary registrations such as GST registration, PAN card, and bank account.
  6. Marketing: You need to market it to attract customers. You can use various marketing strategies such as advertising in newspapers, hoardings, and social media. We will discuss all the things in brief, If you want to start it in India, then you need to be aware of the following plan and information because this will be the basis on which you can start it.

Cost and Dealership Rules

It is important to note that the initial investment required for this is at least 50 lakh rupees.

At present, private oil companies such as Reliance, Essar, Shell, etc. can soon start their retail outlets in the country. Here is some information about it:

Essar Oil Dealership

Essar Oil plans to open more than 2,000 petrol pumps across India in the next 12 to 15 months, having already opened over 800 within a year. As per their plan, Essar Oil had announced its intention to open 4,300 outlets by March 2017, and the work is still ongoing for this. Therefore, the company is focusing on all outlets simultaneously.

Eligibility for Petrol Pump Dealership

For instance, we are taking the example of Esser here, If you want to take a dealership of Essar Oil petrol pump, first you will have to meet some necessary requirements, which are as follows: The applicant must have a space of 800 square meters to obtain Essar’s dealership. If you want to open your petrol pump on a highway, then it is mandatory to have a space of at least 1200 square meters along the highway.

Where to Get an Application for a Petrol Pump Dealership

To obtain a dealership from this company, you need to submit an application form to the company. This application form is available in both Hindi and English languages on the official website of this company. However, if you wish, you can also submit the online form on the website. The necessary links for both these processes are given below.

To obtain the retailer form of the Essar Oil Company, visit its official link: [Link]

The most noteworthy aspect of this dealership is that its process is transparent, thus minimizing the possibility of corruption. The company has not adopted the tender process for the dealership. After applying, representatives of the company will survey your location. If your land meets their requirements, you will receive the dealership within a month.

Petrol Pump Dealers Facilities

Every company wants its product to be used more than its competitors. Therefore, Essar Oil will assist its dealers in every way possible to ensure that its customers face no issues. Essar Oil will provide the following help to its dealers:

  • The company will provide ample technical and engineering support to set up the outlet.
  • The best thing is that Essar will handle the design and branding of your outlet. So, there is no need for you to spend any money on branding.
  • To increase sales at the outlet, the company will acquaint the dealers with new technologies.
  • The company will provide free training to the dealer’s employees, and from time to time, it will offer promotional schemes to its dealers.

Petrol Pump Dealership Rule and Cost 

The company will lease your 800 or 1200-square-meter space for 30 years. The amount to be invested by you for the dealership will be determined by the company itself, which may depend on the location of your space.

Legal Documents Required for Petrol Pump Dealership

To operate your outlet smoothly, you need to obtain a license for selling petrol, register for sales tax, and complete other legal formalities. However, the company will provide you with complete assistance in all these tasks.

Reliance Oil Petrol Pump Dealership

In this matter, Reliance is also not behind in the competition. Reliance is also planning to open a total of 1200 petrol pumps. In 2008, considering the subsidy being provided by the government-owned oil companies, the company had shut down around 1400 petrol pumps. However, due to the recent decision to de-control diesel prices, Reliance has re-opened around 20% of its closed petrol pumps. Over time, Reliance plans to establish all of its petrol pumps and also provide dealership opportunities.

For more information, you can visit the official website of Reliance.

IOC (Indian Oil Corporation) Petrol Pump Dealership

IOC has invited applications for a total of 320 petrol pumps with good locations. Therefore, all those who have a good location can take the dealership of this company. These 320 petrol pumps are located only in Western Uttar Pradesh. According to information received from IOC, at least 2,000 more petrol pumps will be opened by this company across the country.

For more information on this company’s dealership, visit the official link of the company.

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