Complete Process To Open A Petrol Pump In India
According to the latest news reports, there are around 64,624 petrol pumps in India. In addition to these numbers, the three public sector oil marketing firms, namely the Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Indian Oil Corp (IOC) have also advertised to open 78,493 more petrol pumps in India. Therefore, there are several opportunities to open a petrol pump in India.
In India, the Petrol Pump business is considered a lucrative one. But very few people have an idea on how to start a petrol pump in India or how to get a petrol pump license easily. It is very important to know about all the eligibility criteria before applying for the process. As per the latest rules, an applicant should pass the first stage of the prefixed criteria to be eligible for the second stage.
In this article, we will talk about the complete process to open a petrol pump in India in a detailed manner.
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How to Start a Petrol Pump? - Required Criteria
Before starting the complete process to open a petrol pump in India, the applicants must go through the following eligibility criteria carefully. An applicant will only be considered for the process if he/she meets all the following eligibility criteria:
The First Step for the Eligibility Process:
The applicant who is applying for the petrol pump license must be an Indian citizen as well as a resident of the country. But if the applicant happens to be a Non-Resident Indian i.e. NRI then he/she must live for at least 180 days in India before applying for the process.
The applicant should be aged between 21 years to 55 years (except for the families of freedom fighters).
He/She must have their birth certificate or proof of their date of birth. For example, a photocopy of the 10th mark sheet.
For applicants belonging to the SC / ST / OBC category, the minimum educational qualification should be 10th pass while for the applicants belonging to the General category, the minimum qualification required is 12th pass.
If an applicant wishes to open the petrol pump in an urban area, a minimum graduate degree is required for being eligible. However, for the freedom fighters, there is no such eligibility criteria regarding minimum qualification.
Second Step for the Eligibility Process:
The applicants who clear the first eligibility step will be processed further for the second step, i.e., the minimum fund requirement procedure. Although the exact amount to open a petrol pump varies throughout the country, a minimum of Rs.15 lacs to Rs.20 lacs will be spent on land required for a petrol pump in rural areas. While for the urban areas, the minimum land cost may be around Rs 30 lacs to 35 lacs.
Apart from jewellery and cash, the applicant must also know that the required money can also be provided in the form of mutual funds, bonds, National Saving Certificates, share of listed companies in Demat account, saving accounts or deposits with Banks / Postal Scheme/Registered Company.
How to Get Petrol Pump License in India? - the Eligibility Process
A new eligibility criterion has been formulated in order to maintain transparency during the allotment process of the petrol pump licenses. As per the new formulated process, the applicant must check the pre-established eligibility criteria and must fulfil all those criteria to fit in the process of license allotment. If you are wondering about how to get a petrol pump license easily, then you must fulfil all the eligibility requirements.
All of these eligibility criteria play an important role in the selection process. If an applicant fails to fulfil the first step of the eligibility process, he/she will not be allowed to process for the next step.
Given Below are the Eligibility Criteria for Getting a Petrol Pump License in India:
He/She must be an Indian citizen and a resident of India.
The age of the applicant must be between 21 years to 55 years (Exception: The freedom fighters who fall under the CC2 category)
The minimum education requirement/qualification for rural Retail Outlets (ROs) should be 10+2 by a Board / University.
The minimum education qualification for regular retail outlets should be Graduation / Chartered Accountant (CA) / Company Secretary (CS), Cost Accountant and Diploma in Engineering.
For the CC1 and CC2 category candidates, the minimum education requirement is 10th pass (for rural Retail Outlets) and 10+2 pass (for regular ROs). However, there is no minimum education requirement for CC2 category freedom fighters.
Petrol Pump License Cost in India
According to the current news, the petrol pump license cost in India for dealer-owned Retail Outlets is reported to be INR 18/KL for Motor Spirit and INR 16/KL for High-Speed Diesel. For corporation owned site Retail Outlets the petrol pump license cost in India is INR 48/KL for Motor Speed and INR 41/KL for High-Speed Diesel.
How to Get a Petrol Pump Dealership in India?
Usually, the public Oil Marketing Companies (OMCs) such as the Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Indian Oil Corp (IOC) give several advertisements for setting up new petrol pumps at different locations in the country. These advertisements are mostly found in newspapers or websites. Hence, the interested applicants can easily apply for a dealership online for opening a petrol pump in his/her desired state/city/region.
Since the number of applications for petrol pump dealerships is generally high, the oil marketing company often announces the name of the winner through a lottery system. One who wins the lottery has to submit all the required documents to the oil company.
After getting the petrol pump license, the applicant will have to open a current account in the name of his/her petrol pump. He/She must also get the GSTIN number in order to pay the GST.
Hence, it can be seen that the application process to get an Indian Oil Petrol Pump Dealership is a very complex process. Apart from fulfilling these criteria, one must also invest enough money for the land requirement. Given below is the Indian Oil Petrol Pump Dealership Cost in India.
Indian Oil Petrol Pump Dealership Cost
The petrol pump application fees in India is Rs.1000/- for regular retail outlets and that for rural retail is Rs.100/-. A 50% concession on the application fee will be provided to the applicants belonging to the SC/ST categories. The application fees for opening a petrol pump is non-refundable and an applicant can apply only for one particular location, i.e., either rural or urban.
An applicant will have to pay a non-refundable amount of Rs.5 lakhs for a rural retail outlet and Rs.15 lakhs for a regular retail outlet if he/she happens to own land in the concerned area.
But in the case of Corporation Owned Sites, a non-refundable amount of Rs. 10 lakhs must be paid by the applicant for rural retail outlets and for that of regular retail outlets, an amount of Rs.30 lakhs must be paid.
FAQs on How To Open a Petrol Pump In India?
1. What is the minimum area of land required for the Indian oil petrol pump?
Before opening a petrol pump, the applicant should also provide some eligible documents to prove the ownership of the land. Failing this, the applicant will be removed from the process. The location of the land required for the Indian oil petrol pump plays a very important role for oil marketing companies. As preferred by these oil marketing companies, the location must be near a residential locality or in any nearby busy market areas. The applicant can also find land near state/national highways in order to increase the sale.
Usually, a minimum land area ranging from 800 square meters to 1200 square meters is considered sufficient for opening a petrol pump.
2. Who can open a petrol pump in India?
Any citizen of India who is currently residing in the country and meet all the steps of the basic eligibility criteria can open a petrol pump in India. Even any Non-Resident Indian (NRI) can also open a petrol pump, but he/she must live for a minimum of 180 days in India before applying for the process.
3. What is the minimum Indian oil petrol pump dealership cost for rural retail outlets?
The minimum dealership cost required for opening an Indian Oil petrol pump in the retail outlets is Rs. 5 lacs. But if the land is owned by any corporation site, the dealership cost can be Rs.10 lakhs for rural retail outlets. Apart from this, a minimum application fee of Rs.1000 must be paid by the applicant during the process. The fee taken is non-refundable. However, the applicants belonging to the SC/ST categories will get a 50% concession on this application fee.
