Owning a petrol pump is one of the most profitable businesses in India. The ever increasing demand for fuel has caused the industry to boom in recent years. Moreover, the number of vehicles on Indian roads has been growing every year, thus increasing the amount of fuel consumption. India is also rapidly expanding, which naturally increases the demand for petrol pumps in the country. So, if you’re thinking of getting into the business, here’s how you can get a petrol pump licence in India.

Requirements for Petrol Pump Dealership

The basic requirement to start a petrol pump is meeting the eligibility criteria. Any person who wants a petrol pump licence should be a citizen of India and be 21 years of age or older, but less than 55 years old. Moreover, any individual who wants to get the document stating they’re a resident of India should have lived in the country for 182 days or more in the previous financial year.

An individual’s age must be validated by either submitting their 10th standard board examination certificate, secondary school leaving certificate, birth certificate, passport, or an affidavit affirming the mentioned age with their election card issued by the Election Commission of India.

Furthermore, all individuals wanting to get a licence to open a petrol pump in India must have basic education qualifications. As per their location, either urban or rural, education criteria is as follows:

  • Rural Areas: Any applicant who is SC/ST or OBC should have passed their 10th standard board examination. For applicants in any other category, passing the 10+2 level of examination is the basic requirement.
  • Urban Areas: SC/ST or OBC applicants must have a minimum educational qualification of passing a 12th standard board examination. For open category applicants, a graduation certificate from any university registered under the Act of Central or State Legislature in India is required.

Applying for a Petrol Pump in India

To apply for a petrol pump dealership in India, an individual must fulfil the basic age limit and the educational qualification criteria. The process has become online, and you can follow these basic steps:

  1. Open the official portal of Petrol Pump Dealer Chayan and click the Register Now option on the website’s homepage.
  2. Once you have registered your username and created a password, log in from the same ID and click Available Advertisement from one of the options on the dashboard.
  3. You can choose between Indian Oil, Bharat Petroleum, or HP (Hindustan Petroleum), followed by choosing the State and the nearby location to where you want to start a petrol pump.
  4. Click Apply now and select Individual or Partnership as per your choice of company. Provide all the necessary details. You will need to upload your photograph and signature before clicking Submit.
  5. Once your application is filled out, you will be redirected to a payment gateway. A sum of ₹10,000 has to be paid to finish the process.

Availing a Petrol Pump Licence

Once you have registered yourself on the Petrol Pump Dealer Chayan website, you can move on to getting the licence required to run a petrol pump in India. Applying for a licence is simple, and you shall receive the licence in approximately two days.

The licensing process can be commenced by visiting the official websites of Oil Marketing Companies (OMCs), or you can look for newspaper advertisements from OMCs. As an expansion process, OMCs send out ads where they want to set up a petrol station. To complete your application, you would need to:

  1. Purchase an application form costing ₹100 in rural areas and ₹1000 in urban areas.
  2. Fill in all the necessary details and upload the form on the official website of the chosen Oil Marketing Company.
  3. Once the licence is procured, you will need to apply for GST under your company’s name. Moreover, you will need to open a current account under the same name and timely pay GST once the business is commenced.

Minimum Investment

To start a petrol pump in India, a minimum investment of ₹12 lakhs in rural areas and ₹25 lakhs in urban areas is required. The applicant must show the ability to invest the minimum amount before starting a petrol pump. Depending on the company and location, the investment amount can also vary.

The funds for investment can be raised in one of the following ways:

  • National Savings Certificate
  • A Demat Form of shares from any listed company
  • Funds in saving accounts
  • Bonds
  • Bank Deposits

An applicant’s personal cash, jewellery, or balance in their current account will not be considered investment. Moreover, shares, mutual funds, and bonds must be attached with a valuation certificate from a Chartered Accountant.

Land Requirement for Starting a Petrol Pump

Once these basic requirements are met, the applicant can successfully apply for a petrol pump dealership. However, the next step involves a draw or a bidding process before the right applicant is chosen to commence a petrol pump business in the advertised location. Keep an eye out for newspaper advertisements and frequently visit the Petrol Pump Dealership Chayan website to know about eligible locations for starting a petrol pump.

As a basic land requirement criterion, the area should at least fall within 800 to 2000 square metres. However, one should look for the minimum land requirements advertised by the Oil Marketing Company for various locations. Sanctioned land locations as per the ads sometimes vary, so individuals must ensure that their land meets the requirements.

The land can be owned or leased. But make sure that you register the leasing period as agreed upon by the oil dealership. As an elementary criterion, the land should be easily accessible. Furthermore, the land should be developed and levelled. All the legal documents of the land should be in place for the verification process.

So, this was all you needed to know about how to get a licence for starting a petrol pump dealership in India. Feel free to drop any questions below.