Petrol Pump Business Plan

Overview

Starting a petrol pump business in India can be a great way to get into the country's rapidly growing economy. However, as with any business, it is important to have a solid plan in place before getting started.

Eligibility Criteria for a Petrol Pump Business Plan in India

To be eligible for a petrol pump business plan in India, there are a few key criteria that must be met:

• The applicant must be an Indian citizen
• The applicant must have a valid PAN card
• The applicant should ideally have some prior experience in the petroleum sector, though this is not mandatory
• The applicant must have the required investment capital to start the business. This includes the cost of land, construction, and equipment
• The applicant must obtain all necessary licenses and permits from the relevant authorities before starting operations.

What Are the Land Requirements for a Petrol Pump Station Business Plan in India

In order to start a petrol pump business in India, you will need to have a minimum of 1 acre of land. The land must be owned by the applicant and should be located within 1 km of a national or state highway. In addition, the land should have a frontage of at least 50 m on the highway.

How to Start a Petrol Pump Business in India

To set up a petrol pump business in India, you will need to obtain the following:

• A valid retail license
• An authorisation certificate from the oil company you wish to supply fuel from
• No Objection Certificate (NOC) from your local municipality or panchayat
• Permission from your state pollution control board.

After you have obtained the necessary permits and approvals, you will need to find a suitable location for your petrol pump. The site should have enough space to accommodate the storage tanks, pumps, and other equipment required for the business. It should also be located in a high-traffic area to ensure that there is a steady stream of customers.

Once you have secured a location, you will need to purchase the necessary equipment and supplies. This includes storage tanks, pumps, hoses, and other accessories. You will also need to arrange for fuel delivery from the oil company you have chosen to supply your station.

Once everything is in place, you can start marketing your new business to potential customers. Make sure to promote any special offers or discounts that you may be offering. You can also use online platforms such as social media to reach a wider audience.

License Fees for Various Fuels

Assuming you have all the other permissions in place, the next step is to obtain a license for your petrol pump. The cost of this license will depend on the type of fuel you intend to sell at your petrol pump. For example, a license for a petrol pump selling only diesel will cost ₹2 lakh, while a license for a petrol pump selling both petrol and diesel will cost ₹4 lakh.

If you want to add additional fuels to your station, such as LPG or CNG, you will need to obtain separate licenses for each fuel type. The cost of these licenses will vary depending on the state in which your petrol pump is located. For example, a license for an LPG gas station in Maharashtra costs ₹15 lakh, while the same license in Gujarat costs ₹20 lakh.

You can find out more about the specific fees for each type of fuel by contacting your state's licensing authority.

Documents Required to Start a Petrol Pump Station Business in India

• A valid license from the Indian Oil Corporation (IOC) or any other oil marketing company
• A No Objection Certificate (NOC) from the Fire Department
• An NOC from the Pollution Control Board
• A trade license from the Municipal Corporation
• An electricity connection and a water supply connection
• Insurance for your petrol pump station premises and equipment.

Why Vakilsearch?

Vakilsearch has a team of experienced and professional chartered accountants who can help you with all the financial aspects of your business plan.

Vakilsearch also has a team of legal experts who can help you with all the legal aspects of setting up your petrol pump business in India.

FAQs on Petrol Pump Business Plan