Petrol Pump Dealership in India - Petrol pump is unquestionably the most profitable business in India. To start a petrol pump business in India, the individuals are required to be citizens of India as per the taxation rules. Also to obtain its license, the education qualification of 10+2 for the general category and 10th standard pass for reserved categories is to be followed.
Introduction
Petrol Pump Dealership in India – Setting up a petrol pump in India presents a lucrative business opportunity for investors. However, the process involves several steps, from qualifications and licensing procedures to land requirements. Unfortunately, many potential investors lack adequate information on these critical aspects.
This comprehensive guide aims to shed light on the fundamental steps to apply for petrol pumps in India, covering aspects such as licensing eligibility, educational requirements, and the minimum investment needed. Let’s delve into the intricacies of establishing a petrol pump business.
Step-by-Step Guide to Apply for Petrol Pump Dealership in India
Setting up a petrol pump involves a systematic application process. Here are the fundamental steps to guide potential investors:
- Visit the Petrol Pump Website:
- Begin the process by visiting the official website of Petrol Pump you wish to open a franchise under.
- Create an Account:
- Complete the registration form on the homepage to create an account.
- Log In and View Advertisements:
- Log in using your personal ID and password to access the dashboard, where available advertisements are displayed.
- Choose State, Area, and Company:
- Select your desired state, nearby area, and choose the company name from the dropdown options.
- Submit Required Documents:
- Choose between individual or partnership, and submit the necessary documents, including a signature and photo.
- Payment Gateway:
- Proceed to the payment gateway where the application fee is required to be paid to complete the process.
License Eligibility and Requirements
Obtaining a license to operate a fuel station involves meeting specific eligibility criteria. The criteria include:
- Indian Citizenship:
- Applicants must be Indian citizens and residents of India, spending at least 182 days in the country during the preceding fiscal year.
- Age Criteria:
- Applicants must be between 21 and 55 years old. Proof of age can be submitted through documents such as a birth certificate, 10th standard board certificate, passport, age affidavit, or secondary school graduation certificate.
- Educational Qualifications:
- Educational requirements vary based on categories:
- SC/ST or OBC applicants for rural gas stations must have completed at least the 10th grade.
- Other applicants must have completed at least the 10+2 level.
- Applicants from the open category in non-rural areas must hold a degree from a recognized university or equivalent.
- Educational requirements vary based on categories:
- Certificates and Permissions:
- Various certificates and permissions, including a location certificate, No Objection Certificate (NOC) from the Licensing Authority, and approvals from relevant authorities, are essential for business operations.
Where to Apply for the Petrol Pump License
Applying for a petrol pump license is a straightforward process. Candidates can follow these steps:
- Purchase Application Form: Purchase the application form, costing ₹100 for rural areas and ₹1,000 for metropolitan areas.
- Complete Form and Upload Documents: Fill out the form and upload all required documents on the official oil company website.
- Receive License: After approval, candidates receive a license and must obtain a Goods and Services Tax Identification Number (GSTIN) and open a current account for the petrol pump.
| Major oil marketing companies (OMCs) in India include Bharat Petroleum Corp. Ltd. (BPCL), Hindustan Petroleum Corp. Ltd. (HPCL), Indian Oil Corp. (IOC), Oil and Natural Gas Corp. Ltd. (ONGC), and others. |
Minimum Investment Required
For a standard petrol pump, applicants must demonstrate the ability to invest a minimum of ₹25 lakhs, while for a rural petrol pump, ₹12 lakhs is required. Acceptable forms of investment include funds in savings accounts, bonds, shares of listed companies, and mutual funds. It’s essential to note that ownership must be provable, and only a portion of the value of shares, mutual funds, and bonds is considered.
Land Requirement for Petrol Pump Dealership
Land is a crucial factor when selecting petrol pump dealers. Applicants are classified based on land ownership or a long-term lease:
- Land Beside the Highway:
- Applicants should own or have a long-term lease on land adjacent to the highway.
- Firm Offer for Land Purchase or Rental:
- Applicants must submit documentation demonstrating ownership or a firm offer for the purchase or long-term rental of suitable land.
The land’s size must meet specified requirements, and upon selection, candidates must develop the land following engineering standards.
FAQs
How many petrol pumps are there in India?
As of September 2021, there were over 69,000 petrol pumps in India.
Who owns petrol pumps in India?
Petrol pumps in India are owned by public sector oil companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. Private companies are also allowed to own petrol pumps.
What are the different types of fuels sold at petrol pumps in India?
The different types of fuels sold at petrol pumps in India include petrol, diesel, compressed natural gas (CNG), and liquefied petroleum gas (LPG).
What are the safety measures at petrol pumps in India?
Petrol pumps in India are required to follow various safety measures such as installing fire extinguishers, maintaining proper ventilation, and ensuring that customers do not smoke or use mobile phones while refueling.
What are the payment options available at petrol pumps in India?
The payment options available at petrol pumps in India include cash, credit/debit cards, and digital wallets.
What are the working hours of petrol pumps in India?
Petrol pumps in India are open 24 hours a day, 7 days a week.
What are the regulations for setting up a petrol pump in India?
The regulations for setting up a petrol pump in India include obtaining a license from the Petroleum and Explosives Safety Organization (PESO), complying with safety and environmental regulations, and meeting the land and infrastructure requirements.
What are the challenges faced by petrol pump owners in India?
The challenges faced by petrol pump owners in India include fluctuating fuel prices, competition from neighboring petrol pumps, and compliance with safety and environmental regulations.
How can consumers find the nearest petrol pump in India?
Consumers can find the nearest petrol pump in India using various mobile apps and websites such as Google Maps, Indian Oil's Fuel@IOC, and Bharat Petroleum's SmartDrive.
The Takeaway
Petrol Pump Dealership in India – While setting up a petrol pump in India is a promising venture, navigating the intricate application process is crucial. Eligibility criteria, educational qualifications, and minimum investments play a vital role in determining successful applicants. Understanding the land requirements and following a systematic application process, as outlined in this guide, will pave the way for aspiring petrol pump entrepreneurs. By providing comprehensive information,
Vakilsearch aims to empower individuals with the knowledge needed to embark on a successful petrol pump business journey. For our expert assistance, request a callback today!
