How to Open a Petrol Pump in India?
The petrol pump business is unquestionably one of the most profitable ventures both in India and abroad. As a result, there are several individuals willing to invest in this business but lack the knowledge to do so.
If you are one of the individuals wondering how to open a petrol pump in India, here is a detailed discourse for your reference.
How to Apply for a Petrol Pump in India?
If an applicant wants to know how to apply for a petrol pump, then here are some basic steps to perform the same online:
- Step 1: Visit the official portal of Petrol Pump Dealer Chayan.
- Step 2: Click on the “Register Now” option on the homepage and fill in a form to create an account.
- Step 3: Log in with your personal ID and password and click on “Available Advertisement” on the dashboard.
- Step 4: Select your desired company’s name and local state.
- Step 5: Select a nearby area and click on “Apply Now”.
- Step 6: You have to select “Individual” or “Partnership” from a drop-down box.
- Step 7: Provide all required details, upload a photo and signature, and click on “Submit”.
- Step 8: Finally, you will be redirected to the payment gateway, where you have to pay ₹ 10,000 to finish the process.
Who Is Eligible to Open a Petrol Pump in India?
Individuals wondering how to open a petrol pump need to meet the following eligibility parameters to qualify -
- Applicants have to be Indian citizens with valid identity cards.
- If the applicant is an NRI or Non-resident Indian, then he/she has to live in India for at least 180 days before applying for a petrol pump.
Applicant’s age must be between 21 to 55 years.
Where to Apply for a Petrol Pump Business Licence?
The process of applying for a license for how to open a petrol pump is easy and can take less than two days.
Firstly, an applicant has to visit the official website of the Oil Marketing Companies, or they can refer to newspapers where OMCs generally give out advertisements to set up petrol pumps throughout different locations.
Here is a step-by-step guide to getting a petrol pump license –
- Step 1: They have to buy a form for ₹100 for rural areas and ₹1000 for urban areas and have to fill in all the details.
- Step 2: Applicants have to upload all required documents on the official website of their chosen oil company.
- Step 3: After obtaining the license, an applicant has to retrieve a GSTIN number to pay GST and open a current account with their petrol pump’s name.
Minimum Funds Required to Open a Petrol Pump
An applicant must have a good investment strategy and capacity to open a petrol pump business in India.
Also, an applicant can follow these steps to learn how to start a petrol pump and the basic investment needed.
1. Applicants have to spend around ₹12 lakhs for ROs for rural areas and र25 lakhs for ROs for urban areas, which can vary from company to company.
2. Funds will be accepted in these modes that are given below:
- National Savings Certificate
- Mutual Funds
- All shares of listed companies in Demat Form
- Savings accounts funds
- Bank deposits
Note that personal cash, jewellery and current account balance will not be considered an investment in this business.
Minimum Land Requirement for Opening a Petrol Pump
Petrol companies generally issue advertisements about sanctioned land locations.
Therefore, an individual must ensure that their land falls under that category before proceeding with an application.
Hence, an applicant looking for how to get a petrol pump dealership must meet the following land criteria -
- Applicants must either own the land or lease for the period agreed upon by the oil dealership.
- This land should be easily accessible and should be developed and levelled.
- All legal documentation of this land must be in place for the verification process.
Depending on its location, this land area should be at least between 800 sq. meters to 2000 sq. meters.
Educational Requirement to Open a Petrol Pump in India
Follow the points given below to know about educational qualifications to open a petrol pump:
- For general category applicants, it is mandatory to have a 12th pass certificate and a 10th pass certificate for SC/ ST/ OBC.
- Applicants must have an educational qualification from universities registered under the Act of the Central or State Legislature in India, any other educational institution under a Parliamentary Act, or a Deemed University.
- If an applicant wants to open a petrol pump in an urban area, then they must have a Graduation/ Chartered Accountant/ Company Secretary/ Cost accountant/ Diploma in Engineering.
- Also, an applicant must have a minimum qualification of 10+2 for the C1 and C2 categories.
The petrol pump business is one of the most profitable businesses these days with loads of opportunities coming up in future.
Applicants eager to open a petrol pump must go through all eligibility requirements mentioned above and also must look into all prospects through which they can accumulate funds in order to open a petrol pump.