How to Open a Petrol Pump in India

Post 001 - How to Open a Petrol Pump in India (New)

Fuel sector is one of the core industries in India which plays a significant role in influence the decision-making of all other sectors. Fuel consumption in India has increased by 10.7% to a 16 year high in 2016. So the petrol pump business is considered as the most profitable business in India as it is one of the best business ventures. Getting a license to open a petrol pump is not an easy process. You have to follow many guidelines and formalities just to open a petrol pump in India. Many people don’t know about the detailed procedure to get petrol pump license and want to open a petrol pump in India. This article deals with the full procedure to open a petrol pump in India. It is just to get petrol pump dealership to open a petrol pump in India.


Learn how to Open a Petrol Pump in India

Many companies of petrol pump run in India like Essar petrol pump, Indian oil petrol pump, reliance petrol pump, Bharat petroleum. For the whole procedure of Bharat petroleum dealership, Essar petrol pump dealership, Indian oil petrol pump dealership and reliance petrol pump dealership, you can start with the following article.

Licensing Procedure:

  • A new eligibility criterion has been formulated for allotting the petrol pump licenses.
  • The first step is to check the pre-established eligibility criteria.
  • It is important to fit these criteria because only then you will be selected in the second round.
  • Where a dealer is selected by drawing the lots or a bidding process.

Eligibility Criteria:

  • Applicant has to be an Indian citizen and a resident of India.
  • The age of applicant must be between 21 to 55 years (Except Freedom Fighters under CC2 category)

Educational Qualification for rural Retail Outlets (ROs):

  • Minimum education requirement is 10+2 by a Board / University.

Educational Qualification for regular retail outlets:

  • Minimum education qualification is Graduation / Chartered Accountant (CA) / Company Secretary (CS), Cost Accountant and Diploma in Engineering

Educational Qualification for applicants of CC1 and CC2 category:

  • Minimum education requirement is a 10th class for rural Retail Outlets and 10+2 for regular ROs.

Educational Qualification for freedom fighter under the CC2 category:

  • Minimum education norm is not applicable.

Minimum Fund Requirement:

  • For regular retail outlets, minimum fund requirement is 25 Lakhs.
  • For rural retail outlets, minimum fund requirement is 12 Lakhs.
  • The fund can be available in the form of Saving accounts, deposit with banks / Registered Company / Postal Scheme, Share of listed companies in Demat account, National saving certificate, Bonds, Mutual Funds.
  • Only 60% of the value of shares, mutual funds and bonds will be considered for eligibility criteria.


Land Requirement:

  • The land is important for selecting petrol pump dealers.
  • Applicant should have a land in the area where the land can be your own or you can take it for long lease for a minimum time period.
  • To prove the ownership of the land, the applicant has to produce different types of documents.
  • Rural Retail Outlets: Location is in rural areas but not on the national highways or state highways.
  • Regular Retail Outlets: Retail outlets which are on national highways, state highways, urban and semi-urban areas

License Fee for Petrol Pump:

The license fee for petrol pump is

  • INR 18/KL for Motor Spirit
  • INR 48/KL for Motor Speed
  • INR 16/KL for High-Speed Diesel for dealer-owned “B” / “DC” site Retail Outlets
  • INR 41/KL for High-Speed Diesel for a corporation owned “A” / “CC” site Retail Outlets.

Application Fee for Petrol Pump

  • The application fee is INR 100/- for rural retail outlets.
  • The application fee is INR 1000/- for regular retail outlets.
  • The application fee is non-refundable.
  • You have to pat the application fee in the form of DD.
  • SC/ST candidate can get 50% concession on the application fee.
  • One applicant can apply for one location only.

Application Fee in the case of Corporation Owned Sites:

  • Applicant have to pay a non-refundable bidding amount of
  • INR 30 Lakhs for regular retail outlets.
  • INR 10 Lakhs for rural retail outlets.

Application Fee in the case of Dealer Owned / Company leased sites:

  • Applicant have to pay a non-refundable fixed fee of
  • INR 15 lakhs for regular retail outlets.
  • INR 5 lakhs for rural retail outlets.

How to Apply for a Petrol Pump Dealership

  • To set up a Petrol Pump on a particular location, Oil Marketing Companies sometimes publish an advertisement.
  • The applicant can also submit an application online before the last date.
  • You have to submit the hard copies of required documents.
  • Some companies such as Essar petrol pump, Indian oil petrol pump, reliance petrol pump, Bharat petroleum has a Retail Outlet Franchisee inquiry form on their official website.

Links of some of the companies are given below where the applicant can fill the application form:

IOC Petrol Pump
Hindustan Petroleum
Essar Petrol Pump
Bharat Petroleum


Conclusion of how to Open a Petrol Pump in India

All possible and latest information about the petrol pump licensing is covered in this article. Sometimes OMCs upgrade their requirements and procedure and that would not be a huge change so for that we’ll do updates. Essar petrol pump is a unique one so most of the people search for the Essar petrol pump dealership. The petrol pump dealership is now should be easy to get by reading this article to share this article for others.

Source of how to Open a Petrol Pump in India

The source helped to write this article of how to open a Petrol Pump in India is given at the end. Must share this article with others to get more info about this and comment if any query.


Also Read: Keep Your Pocket Safe from these GST Rates Item Wise List

Author: Manish

Giving for people to get the exact truth and reality. Inspired by the reality and the power of truth, it’s been my idea to aware as many as I can about the truth and reality which is hidden or if can’t come forward. I’ve been researching for the exact related and genuine material for my post since a long.

One thought on “How to Open a Petrol Pump in India

  1. My family members always say that I am wasting my time
    here at web, however I know I am getting know-how every day
    by reading thes pleasant articles or reviews.

Leave a Reply

Your email address will not be published. Required fields are marked *