PETROLPUMP DEALERSHIP Are you looking for one of the best lucrative business ideas in India? Well, with little investment you can get a petrol pump dealership which will be super profitable for you for years to come. Moreover, according to research, marketing firms of the public sector have advertised to open over 70,000 petrol pumps in the county in 2019. So, here lies the great opportunity for people who wants to start their lucrative business.
There are several oil marketing firms in India such as Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL), Indian Oil (IOCL), and Essar Oil company offers a petrol pump dealership to interested individual. There are several aspects that an individual needs to consider before getting started with this petrol station dealership. However, there are many people out there who are not aware of the process of opening a fuel station in the country.
Consequently, Government has exercised new rules to ensure transparency in the distribution of petrol pump dealership in the country, this rule consists of several steps, as per the rule, the first step involves verifying eligibility criteria of every candidate, once the candidate clears the first step, they are followed by the second step, and so on. Thus, it becomes very essential for every interested individual to be well- versed with the process of opening petrol station in the country. Below are define the process as a guide for getting a petrol pump dealership in India: HOW TO GET PETROL PUMP DEALERSHIP IN INDIA? There is a process involved in getting a petrol pump dealership franchise in India. By following the given process one can open a fuel station in the country. From eligibility criteria to investment, and so on, the candidate needs to follow given the entire for getting a license of opening gas station in India. ELIGIBILITY CRITERIA Oil marketing companies require every candidate to meet these criteria before getting into the procedure of dealership. Here is the list of criteria that you need to check out before applying for a petrol pump dealership. The candidate must be a citizen of India. If an individual is a non-resident of India i.e., NRI, then he or she should be staying in the country for a minimum period of 180 days before applying for a petrol pump dealership The age of the candidate should be around 21 to 55 years. The candidate has to provide a photocopy of the 10th mark sheet as proof for verification of date of birth.
The candidate falling under SC, ST, OBC, should have a minimum qualification of matric i.e., 10th pass, whereas the candidate falling under the general category should have a minimum qualification of higher secondary i.e., 12th pass. If a candidate wants to set up a petrol station in an urban area – he or she must have passed graduation. INVESTMENT IN TERMS OF FUND If candidates easily clear the first step then they are proceeded to the next step – fund investment. Here candidates require to make a minimum amount of fund investment. Well, the amount varies from one oil firm to another. However, in general, the candidate needs to spend a minimum amount ranging between 1 to 1.5 crore, the investment depends on the location of the land and the size of it. Now, if a candidate owns the land then he/she will be saved from investing the same. Moreover, the candidate has to deposit 50 to 60 lakhs as brand security to the oil company. However, these required fund or deposit are accepted in a certain form such as: Bonds National Saving Certificates Mutual Funds Saving accounts, Postal Scheme/Registered Company, deposits with banks Security of listed company in Demat account INVESTMENT IN TERMS OF LAND After successfully clearing the second step the candidate moves ahead to another step – land investment. The candidate requires land in the concerned area to open a petrol pump in the same. If the candidate does not own the land then he or she can have it on lease. For this purpose, the candidate has to present some documents to prove ownership of the land such as NOC ( No Object Certification) from the landowner. For setting up a petrol station in a rural area, the candidate should make sure the land is not located on state highways or national highways, but only in a rural area. And for setting up a petrol station in an urban area, the candidate should look for land situated on state highways, semi-urban areas. Once the land gets approved, the candidate might need to provide a retaining wall and compound wall with a minimum height of 1 to 2 meters as mentioned by the site.
HOW TO APPLY FOR PETROL PUMP DEALERSHIP? Usually, oil marketing firms give advertisements in the newspaper about the opening of petrol pumps across the country. While there are oil companies like Essar Oil, Indian Oil Corp Ltd (IOCL), etc have an application form on their official website. By visiting the website, interested candidates can easily apply for the petrol pump dealership franchise. So, follow the below-given steps to open a petrol pump dealership in India: Step 1 – Visit the official website of petrolpumpchayan. Step 2 – There you will find the registration option given on the home page, click on it. (NOTE: keep your registration ID and password save, you will be needing to log In.) Step 3 – Now, you will find the “Apply Now “ option, click on it. Step 4 – The application form will be open which will be comprising basic information about the candidate such as: Name: Mention your respectful name Email ID: Give your valid email id. Mobile Number: Give your existing mobile number. Company Applying For: Choose the company from the given list that you are applying for such as, Indian Oil (IOCL), Hindustan Petroleum ( HPCL), Bharat Petroleum( BPCL), and Essar Petroleum, etc. Applying For: Choose the type of dealership such as Petrol, Diesel, CNG, and LPG, etc. Investment: Fund investments are divided into five slots, starting from 10 lakhs to 25 lakhs and extending from 1 crore to 5 crores. Enter Your Location: Mention the location where you want to set up the retail outlet. Enter Your City: Mention the city where the petrol pump will be set up. Enter Your District: Mention the district of the same. Enter Your State: Also mention the state of the same. Enter Your Pincode: The relevant pincode. Enter Your Message: You can draft any message or query you want related to the dealership. Once you fill up all the details, then press on submit. The applicant is required to make a payment of Rs. 1000/- for application form along with supporting documents and affidavit. If the applicant is shortlisted then he/she will be called for the interview with a notice
period of 15 days. The applicant has to carry their supporting documents and application form along with them. LICENSE LICENSE REQUIRED: To open a retail outlet in India, the candidate has to initially acquire a license from different bodies based on his/ her location. License from Petroleum & Explosive Department District Collector NOC & its respective authority Under rural area – Gram Panchayat NOC Under urban area – comes Forest then Forest NOC Weight & measures stamping departmental approval LICENSE FEES: Rs. 18/KL for Motor Spirit (MS) and Rs.16/KL for High-Speed Diesel (HSD) for dealer-owned "B"/"DC" site Retail Outlets and Rs 48/KL for Motor Speed and Rs.41/KL for High-Speed Diesel for a company owned "A"/"CC" site Retail Outlets are the license fee for a petrol pump dealer. PROFIT MARGIN FROM PETROL PUM DEALERSHIP The revenue made by the dealer of the petrol pump depends on the type of dealership he/she has chosen. The profit margin can be better understood by analysing revenue in terms of types of dealerships. REVENUE FROM URBAN AREA PETROL PUMP:- Revenue generates from Petrol: On state highways, the average sales will be 3000 liters of petrol every day. So, the commission made per liter for the city - Rs. 3/-. Sales per day – Rs. 9000. Sales per month – Rs. 2.7 lakhs and total revenue per year – 32.4 lakhs. Revenue generates from Diesel: The average sales will be 4000 liters per day on national highways. Commission made per liter for the city - Rs. 2/-. Sales per day - Rs.
8000. Sales per month – 2.4 lakhs and total revenue per year – 28.8 lakhs. REVENUE FROM RURAL AREA PETROL PUMP:- Revenue generates from Petrol: In rural areas, the average sales will be 2000 liters every day. Commission made per liter for the rural area - Rs. 2.25/-. Sales per day – Rs. 4500. Sales per month – 1.35 lakhs and total sales revenue per year – Rs. 16.2 lakhs. Revenue generates from Diesel: In rural areas, the average sales will be 3000 liters every day. Commission made per liter for the city - Rs. 1.5/-. Sales per day – Rs. 4500. Sales per month – Rs. 1.35 lakhs and total sales revenue per year - Rs. 16.2 lakhs. CONCLUSION This article aims at providing inclusive details on petrol pump dealerships for all the interested candidates who are planning to open a petrol station in India. I hope this article helped you have a better understanding of the petrol pump dealership franchise in India. So, you can have a successful start-up.