Petrol pumps have always been the leading profit-driven business not only in India but all over the globe; the increase in growth of the automobile and logistics sector leads to more consumption of petrol. In today’s age, petrol is the need of every common man to ensure convenience and comfort in daily life.
Petrol pump owners greatly contribute to the rapid growth of the country’s economy. Owning a petrol pump in today’s age is the safest and most feasible business model to adopt because there is almost zero chance of failure in the Petrol pump business. Oil companies all over the world generate enormous opportunities for people and encourage them to become part of the petrol pump business.
In today’s module, we’ll be educating readers about the most lucrative Petrol Pump Business Plan and easy steps to take from scratch to a full-fledged petrol pump, and also we will figure out how much investment is needed to start a petrol pump in India. Stay Tuned!
How to Start Petrol Pump Business: Easy Steps to Follow
Starting a petrol pump in India is profitable, but a bit challenging business, the government of India has set up certain criteria to meet before starting a petrol pump in India. The conditions are-
- A person must be a citizen of India / More than 182 days for NRIs
- Minimum age 21 years and maximum age 55 years
- License and permits from the concerned authorities
- Education qualifications – 10+2 in rural areas and Graduation in urban areas
- Minimum investment of 15 lakhs in rural areas
- Maximum investment of 2 crores in urban areas
- Birth certificate proof
In case you have met all the above requirements, then follow these easy steps below to commence your petrol pump.
Plan and Strategize
Preparing yourself with a productive business plan and strategies – is the first step towards the success of you as a petrol pump owner. Your petrol pump business plan is the roadmap to your goals. In this planning phase, predict all the upcoming challenges and find their solutions. Do add the following points while designing your petrol pump business plan.
- Create a budget and make a cost estimate for sales, operation and hiring of staff.
- Keep an eye on cash flow and Return on investment (ROI).
Although the petrol pump business does not require huge planning, it is already a basic need of people. Hence it will work.
Get the Land
Starting petrol pumps in India requires a minimum of 1 acre of land, which, most of the time, petrol companies finalise. Before selecting, make sure you have chosen the right category of land. The land has to be either owned or leased by the person taking the dealership; also, make sure the land must be developed and easily accessible from the road.
Investment and Funds
In order to start a petrol pump, you must possess a good investment capacity. The cost of starting petrol pumps differs in urban and rural areas. One can generate 2-3 Rs direct profit per litre. The cost of setting up in urban areas would be nearly Rs 2 crore, whereas in rural areas it would be nearly 25 lakhs.
(Note: The cost of dealership may vary from dealer to dealer)
Be prepared with financial capital, and if not, then don’t worry OneNDF is always ready to help you in terms of finance and credit. Take Petrol Pump business loans at competitive rates with flexible repayment tenure from India’s leading lenders. Read Article: Catering Business Plan
Get the License and Permits
This is one of the most crucial and difficult steps involved in the whole process from beginning to end; on an initial basis, try to obtain a petrol pump license from different oil companies using their websites you can also apply to the Ministry of Petroleum and Natural Gas portal.
Fill up all the required details like Name, Address and Contact details and also upload the required documents. Once you are completed with the registration, wait for the response and let the ministry and companies do the background check.
Once you get the license approved, now it’s time to apply for other licenses and authorisations, such as
- GST registration and obtaining GST-IN
- Permission from Municipal Corporations
- Fire safety permission
- NOC from concerned authorities like the state pollution control board
- A Valid retail license
Hire the Manpower
Maintain a separate catalogue of people who are needed to operate/Manage the petrol pump business smoothly. Petrol pumps don’t need big staff unless they are doing it on a big scale. In the initial days, you can hire these people.
- Petrol pump Manager
- 8-10 people for on-ground operations
- 2-3 people as cleaning staff
Marketing and Promotion
The petrol pump business generally does not require marketing and other promotional tactics, branding will be done by a franchise company whom you are getting associated with, and most importantly, petrol is a basic need nowadays for people. Hence people will come to you directly.
Make sure your staff is well-behaved, and you are providing fine quality thick petrol because most of the petrol pumps nowadays are involved in cheating their customers by giving inferior quality fuel.
Conclusion
Everyone knows that investing in petrol pumps is the safest and most remunerative business model, the model that doesn’t need marketing or any kind of planning but has to meet certain eligibility criteria before starting up. No specialised skill or knowledge is required. In today’s write-up, we have analysed “How to start a Petrol Business in India” and also the cost which one needs to spend.
If you live in a city, then be prepared with at least 2 crores or more and if you are a rural area resident, then you’ll need at least 30 lakhs. Contact OneNDF for easy credit and finance requirements in the shortest possible time and with low-interest rates. You can generate a free credit report and check your eligibility for loans.
Petrol Pump Business Plan: Frequently Asked Questions
Q.1 Is a petrol pump a profitable business plan?
Petrol pumps are the most lucrative business model with very less risk involved. One can easily make 2-3Rs profit per litre of petrol and 1.80 -2.40 Rs per litre of diesel.
Q.2 Why are petrol prices getting high?
- High Taxes
- Exchange rate distribution
- Refining costs
- Transportation charges
- No government subsidies
Q.3 Which country has the cheapest fuel?
Venezuela has the cheapest fuel in the whole world.
