How to Apply for a Petrol Pump in India in 2025?

The petrol pump business is unquestionably one of the most profitable ventures both in India and abroad. As a result, several individuals are willing to invest in this business but lack the knowledge to do so. To open a petrol pump in India, you need to obtain licences and franchises from public and private sector Oil Marketing Companies (OMCs).

Here are a few key companies you can apply for opening a petrol pump:

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.

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.

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.

Any operators intending to undertake the business of Petrol Pump in India must obtain a licence. The price of the licence varies depending on the type of fuel which will be sold through the petrol pump. Normally, the licence fee paid for Diesel is cheaper compared to the one for Petrol. 

For the sale of other fuels such as CNG or LPG, a separate licence is needed. The fees also depend on the state and choice of licence type.

• The fees for applying for this licence has been estimated at ₹1,000 for urban areas and ₹100 for rural areas. SC/ST/OBC categories are charged 50% on the application fees.

• To run a petrol pump business in India, a fixed amount of charge is needed as capital. For owned land, the fee is ₹15 lakh for regular retail outlets and ₹5 lakh for rural retail outlets.

• In case of a dealership owned by a company, the fixed fee for regular retail outlets is ₹30 lakh, and ₹ 10 lakh for rural retail outlets.

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:

• Bonds
• 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.

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.

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.

It is crucial to acquire specific certificates and permissions in order to start a business of a petrol station. The following are the key requirements for starting this business:

1. The applicant should then get a No objection Certificate ( N.O.C) from the Licensing Authority.

2. It is crucial to obtain the necessary permission from the Municipal Corporation Department.

3. It is important to obtain a Fire Safety Office Certification and the No Objection Certificate from the concerned bodies.

There are several types of petrol pumps to cater to different needs:

1. Self-Service Pumps: The customer pumps the fuel themself and pays either at the pump or inside the station.
2. Full-Service Pumps: Such pumps are where an attendant pumps fuel into the car and examines the oil. However, they tend to be more expensive since you get a lot of conveniences from using them.
3. Fleet Fueling Pumps: Some of these are for commercial use and are preferred by companies with a fleet of vehicles. These provide several fuel choices and intricate tracking of fuel consumption.
4. Mobile Fueling Services: These are trucks which have fuel tanks that ferry the fuel to where it is needed, more specifically to busy personnel or companies who have little time to ferry the fuel themselves.

A petrol pump operation involves both mechanical and electrical systems, however, they are primarily operated electronically. In this pump system, when a nozzle is immersed in the fuel tank, and the trigger is pulled, a pump situated at the underground storage tanks of the station pumps the fuel through a hose into the car’s fuel tank. 

Flow metres measure the amount of fuel dispensed, and the cost is calculated based on the price per litre or gallon. Current inventions have also included methods through which people can pay at the pump by charging through credit card. Safety mechanisms prevent overflows and spills, ensuring a safe refuelling process.

Here’s the list of leading petrol companies in India:

1. Indian Oil Corporation Limited (IOCL): Being India’s largest petrol company, IOCL has enormous numbers of refineries, pipelines and retail outlets. 
2. Bharat Petroleum Corporation Limited (BPCL): BPCL is a prominent petrol company owned by the government of India. It excels in aviation fuel and owns numerous refineries, pipelines and outlets.
3. Hindustan Petroleum Corporation Limited (HPCL): HPCL is one of the largest state owned companies in India. It has two very vital refineries in Mumbai and Visakhapatnam. It continues to expand its outlets throughout the country offering better quality of products and services.
4. Reliance Industries Limited (RIL): Dr Mukesh Ambani led RIL runs one of the largest refining hubs in Jamnagar, Gujarat through Reliance Petroleum Limited adding to India’s petrol production capacity to a considerable extent.
5. Nayara Energy Limited: Nayara Energy is a 50:50 joint venture with Russia’s Rosneft. It has a big private sector refinery situated at Vadinar, Gujarat.
6. Gulf Oil Corporation Limited: The Gulf Oil is a part of the Hinduja Group and it deals with the lubricants and fuels for automobiles. They are known for their quality and innovative solutions among the consumers and industries.
7. ONGC Petro Additions Limited (OPaL): OPaL has one of the largest petrochemical complexing hubs with diversified petrochemical products and plays a crucial role in the industry.
8. Cairn India: Cairn India is one of the premier oil and natural gas exploration and production companies, focusing on exploration and development of reserves in the western and the northeastern part of the country.
9. Oil India Limited: Oil India Limited is a public limited company incorporated in 1959 that deals with exploration, development, and production of oil and gas resources.
10. Shell India: Operating in India and owned by Royal Dutch Shell, Shell India provides its customers with good-quality fuels, outstanding customer care, and energy efficiency and innovation management.