Check License Eligibility to Open a Fuel Station

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.

Petrol pump

It is quite easy to apply for petrol pumps in India. But several individuals who are willing to invest in such do not have sufficient knowledge regarding the qualifications, license-obtaining process, registration, etc. Here are the basic steps which are to be performed to apply for petrol pumps in India-

  • Step-1: Login to the official site of Petrol Pump Dealer Chayan
  • Step 2: Create an account by filling out the form on the home page and getting registered
  • Step 3: Login through the personal ID and password, available advertisements would appear on the dashboard
  • Step 4: Select the desired state, nearby area, and name of the company
  • Step-5: From the drop-down box the option of individual or partnership is to be selected and the documents asked are to be submitted along with a signature, and photo
  • Step-6: The individual would be directed towards the payment gateway. A payment of 10,000 is to be done to finish the process.

License Eligibility to Open a Fuel Station in India

As per the new method applicants are compared for the purpose of fulfillment of some requirements. All applicants who meet the eligibility requirements are chosen for the next phase, in which the dealer is chosen through a drawing of lots or a competitive bidding process. Thus, eligibility requirements are now crucial in deciding who will be the gas station dealer. The basic eligibility to obtain the license includes-

  • According to Income Tax regulations, a person must be an Indian citizen and a resident of India. An individual must have spent at least 182 days in India during the preceding fiscal year to obtain the resident of India document.
  • Additionally, the applicant must be between the ages of 21 and 55. A copy of the applicant’s birth certificate, 10th standard board certificate, passport, age affidavit, certificate of secondary school graduation,or identity card issued by the election commission must be submitted as proof of the applicant’s age.

Click here to get Petrol Pump Business plan in India 

Educational requirements-

All candidates applying for a position at a gas station must have a basic education. SC/ST or OBC applicants for rural gas stations must have completed at least the 10th grade, while all other applicants must have completed at least the 10+2 level of examination. If applying under an open category, the applicant must have passed an exam at least at the 10+2 level for rural gas stations. 

For applicants under the open category who are not from rural areas, the applicant must hold a degree from one of the universities recognised by an Act of the Central or State Legislature of India, from any other educational institution recognised by an Act of Parliament, or from a university that has been designated as a Deemed University. 

Therefore, it demands a Graduate in any discipline, Company Secretary, Chartered Accountant, Cost Accountant post, or Diploma in Engineering for open category applicants outside of rural areas.

Further certain certificates and permissions are also needed in order to run the business such as location certificate, No Objection Certificate (NOC) from Licensing Authority, Approval from (MCD) the Municipal Corporation Department & Fire Safety Office, Certification and NOC from related authorities.

Where to Apply for Obtaining the Petrol Pump License?

Applying for a license to operate a gas station is simple and typically takes less than two days. First, a candidate must go to the Oil Marketing Companies’ official website or consult the newspapers, where OMCs frequently place advertisements for the installation of gas stations in various places.

Here is a step-by-step tutorial on obtaining a license for a gas station:

  • Step 1: They must purchase a form (100 for rural areas and (1000 for metropolitan areas) and complete it completely
  • Step 2: Applicants must upload all necessary paperwork to the official oil company website
  • Step 3: After receiving a license, a candidate must receive a GSTIN number for the payment of GST and a current account in the name of their gas station.

List of various leading Indian OMCs are- Bharat Petroleum Corp. Ltd. (BPCL), Hindustan Petroleum Corp. Ltd. (HPCL), Indian Oil Corp. (IOC), Oil and Natural Gas Corp. Ltd. (ONGC), Reliance Petroleum Ltd., Shell India Private Limited, etc

The Minimum Investment Required to Obtain the License and Set Up Petrol Pump Business

For a standard gas station, the applicant must demonstrate the ability to invest a minimum of 25 lakhs, and for a rural gas station, 12 lakhs. The following forms of investment funds are possible:

  • Money held in savings accounts, deposited with banks, registered businesses, postal programs, national savings certificates, etc. Bonds, Demat Form Shares of Listed Companies, and Mutual Funds

It’s vital to remember that money, jewelry, etc., whose ownership cannot be proven, will not be taken into account. Additionally, the current account balance won’t be taken into consideration. Only 60% of the value of shares, mutual funds, and bonds will be taken into account. Ask a Chartered Accountant for the asset valuation certificate.

Land Requirement for Petrol Pump Dealership

When choosing gas station merchants, a key factor is land. The candidates are initially divided into the two groups listed below:

  • There should be land beside the highway
  • Applicants must own or have a long-term lease on a suitable piece of land in the vicinity of the posting.
  • Applicants with a firm offer for the purchase or long-term rental of a suitable piece of land.

The applicant must submit a variety of documentation to demonstrate ownership of the Land or intent to purchase based on the aforementioned classification. The land’s size must meet the specifications listed in the advertisement. 

If the applicant is chosen for the gasoline pump dealership, he or she must develop the land up to the road level by cutting/filling it with good earth and compacting it layer by layer in accordance with accepted engineering procedures. A retaining wall and compound wall with a minimum height of 1.5 meters that is developed with consideration for the site conditions are required from the chosen application.


Though, it is quite easy to set up petrol pumps in India, but it requires a lot of investment to set up a business like this. Applicants who meet these requirements will be permitted to move on to the next phase when the final choice is chosen through a drawing, a lottery of lots, or a bidding procedure.

Further the educational qualification of passing the 10 and 12 standard as per the above mentioned required and the citizenship of India is must as per the income tax rules. Vakilsearch is engaged in providing such type of information by which detailed requirements about petrol pumps in India can be availed.

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