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:

Team Digit

Government companies	Private Companies
Indian Oil Corporation Limited (IOCL)	Reliance Industries Limited (RIL)
Bharat Petroleum Corporation Limited (BPCL)	Nayara Energy Limited
Hindustan Petroleum Corporation Limited (HPCL)	Gulf Oil Corporation Limited
ONGC Petro Additions Limited (OPaL)	Cairn India
Oil India Limited	Shell India

If you are one of the individuals wondering how to open a petrol pump in India, here is a detailed discourse for your reference.

Read on!

Apply for a Petrol Pump Dealership
Eligibility to Apply
Where to Apply?
Licence Fees and Minimum Funds Required
Minimum Land, Educational, Certificates and Permissions Required
Types of Petrol Pumps
How Do Petrol Pumps Operate?
List of Oil/Petrol Companies in India
Frequently Asked Questions

How to Apply for a Petrol Pump Dealership 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.

What is the Licence Fees for the Petrol Pump Business in India?

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.

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:

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.

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.

Certificates and Permissions Required for Opening 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:

The applicant should then get a No objection Certificate ( N.O.C) from the Licensing Authority.
It is crucial to obtain the necessary permission from the Municipal Corporation Department.
It is important to obtain a Fire Safety Office Certification and the No Objection Certificate from the concerned bodies.

What are the Different Types of Petrol Pumps?

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

Self-Service Pumps: The customer pumps the fuel themself and pays either at the pump or inside the station.
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.
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.
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.

How Do Petrol Pumps Operate?

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.

List of Oil/Petrol Companies in India

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

Indian Oil Corporation Limited (IOCL): Being India’s largest petrol company, IOCL has enormous numbers of refineries, pipelines and retail outlets.
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.
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.
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.
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.
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.
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.
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.
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.
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.

FAQs about Starting a Petrol Pump Business in India

All

Can an applicant add land details after saving their application form to open a petrol pump?

Yes, an applicant can add land details till their application status has not reached the following stages:

Pending for payment
Payment made and submitted

Do I need to submit a hard copy of the application form submitted to the Office of the Oil Company?

No, applicants need not have to submit any hard copy as this entire process is online.

How much investment is required to open a petrol pump

Depending on location and infrastructure, opening a petrol pump in India typically requires an investment of ₹15-30 lakh.

What is the eligibility criteria for applicants?

Depending on location and infrastructure, opening a petrol pump in India typically requires an investment of ₹15-30 lakh.

What is the eligibility criteria for applicants?

Applicants must be at least 21 years old and meet the educational qualifications set by the oil company.

Is owning the land mandatory if I want to open a petrol pump?

Yes, you need to either own or lease land that complies with the specifications of the oil company.

What is the minimum land area required?

Typically, 800-1200 square metres in urban areas are required. Requirements may be larger in rural areas.

How long will it take for the approval process to be completed?

The entire process may take a few months, including document verification and site inspections.

Does the oil company provide training for the new dealers?

Yes, most oil companies provide training programs for new dealers.

What are the infrastructural requirements for a petrol pump?

Infrastructure requirements include fuel storage tanks, dispensing units, retail outlets, and office space.

Can I operate a petrol pump as a partnership?

Yes, with the necessary legal documentation and approvals partnerships are permissible.

What is the typical profit margin for petrol sales?

Profit margins typically range from 1-3% per litre sold.

Are there any reservation quotas for dealership applicants?

Yes, there are quotas for SC/ST, OBC, women, and ex-servicemen.

What are the safety measures that need to be implemented?

Regular maintenance, compliance with fire safety regulations, and employee training are essential in order to maintain safety.

Is it possible for me to add convenience store services in my gas station?

Yes,in fact most of the gas stations these days come with convenience stores, ATMs, car wash services among others to generate other revenues.

Which environmental regulations must be kept in mind while opening a petrol pump?

Environment regulations that must be kept in mind are storage of fuel, control of spillage and the disposal of wastes.

What are some of the maintenance requirements for a petrol pump?

Some maintenance guidelines that need to be followed include checking dispensing units, ensuring safety compliance, maintaining proper hygiene, and inspecting underground storage tanks regularly.

Is there a role for digital payments at a petrol pump?

Definitely! Digital payments are encouraged at petrol pumps. Most petrol pumps accept various forms of digital payments that include: credit/debit cards, UPI, and mobile wallets.

Can I apply for a petrol pump near highways?

Yes, oil companies frequently seek applications for petrol pumps along highways. This might require additional facilities such as eateries and rest areas.

What is the criteria for deciding the location for a new petrol pump?

Locations are determined based on traffic density near the area, proximity to existing pumps, market potential, and future growth prospects.

Is there a specific format for submitting the application?

Yes, each oil company has its own designated format for applications. These formats can be downloaded from their official websites.

What are some of the common reasons for rejection of a petrol pump application?

Rejection of a petrol pump application may happen when the documentation is incomplete, land is unsuitable, non-fulfillment of eligibility criteria, or due to lack of financial capacity.

Is it possible to transfer my petrol pump license to someone else?

Transfer of a license is generally not allowed without the consent of the oil company.

What are the safety requirements for operating a petrol pump?

Safety requirements for operating a petrol pump include regular maintenance of equipment, adhering to fire safety norms, and ensuring proper training for staff.

As a petrol pump dealer what are my responsibilities?

Responsibilities of a petrol pump dealer include ensuring safety, maintaining stock, looking after operations on a day-to-day basis, and delivering professional service to its customers.

Is environmental clearance mandatory for setting up a petrol pump?

Yes, environmental clearance from the local pollution control board is mandatory.

What is the role of oil companies in the petrol pump application process?

Oil companies are responsible for inspecting applications, advertising vacancies, and selecting dealers.

Is it possible for an existing petrol pump owner to apply for another outlet?

Yes, existing owners can apply for another outlet. However, this will require meeting additional criteria set by the oil companies.

Can I apply for a petrol pump in a rural area?

Yes, you can apply for a petrol pump in the rural area. Oil companies have separate criteria for setting up petrol pumps in rural areas.

How can I expand my petrol pump business?

You can expand your petrol pump by forming partnerships, setting up additional outlets, and investing in technology that improves efficiency.

Is it possible to participate in government or corporate fuel programs?

Yes, petrol pumps can participate in government and corporate fuel programs.

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

Table of Contents

How to Apply for a Petrol Pump Dealership in India?

Who is Eligible to Open a Petrol Pump in India?

Where to Apply for a Petrol Pump Business Licence?

What is the Licence Fees for the Petrol Pump Business in India?

Minimum Funds Required to Open a Petrol Pump

Minimum Land Requirement for Opening a Petrol Pump

Educational Requirement to Open a Petrol Pump in India

Certificates and Permissions Required for Opening a Petrol Pump

What are the Different Types of Petrol Pumps?

How Do Petrol Pumps Operate?

List of Oil/Petrol Companies in India

FAQs about Starting a Petrol Pump Business in India

Can an applicant add land details after saving their application form to open a petrol pump?

Do I need to submit a hard copy of the application form submitted to the Office of the Oil Company?

How much investment is required to open a petrol pump

What is the eligibility criteria for applicants?

What is the eligibility criteria for applicants?

Is owning the land mandatory if I want to open a petrol pump?

What is the minimum land area required?

How long will it take for the approval process to be completed?

Does the oil company provide training for the new dealers?

What are the infrastructural requirements for a petrol pump?

Can I operate a petrol pump as a partnership?

What is the typical profit margin for petrol sales?

Are there any reservation quotas for dealership applicants?

What are the safety measures that need to be implemented?

Is it possible for me to add convenience store services in my gas station?

Which environmental regulations must be kept in mind while opening a petrol pump?

What are some of the maintenance requirements for a petrol pump?

Is there a role for digital payments at a petrol pump?

Can I apply for a petrol pump near highways?

What is the criteria for deciding the location for a new petrol pump?

Is there a specific format for submitting the application?

What are some of the common reasons for rejection of a petrol pump application?

Is it possible to transfer my petrol pump license to someone else?

What are the safety requirements for operating a petrol pump?

As a petrol pump dealer what are my responsibilities?

Is environmental clearance mandatory for setting up a petrol pump?

What is the role of oil companies in the petrol pump application process?

Is it possible for an existing petrol pump owner to apply for another outlet?

Can I apply for a petrol pump in a rural area?

How can I expand my petrol pump business?

Is it possible to participate in government or corporate fuel programs?

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