What is the Complete Process to Open a Petrol Pump in India?

Thinking of how to open petrol pump? Let’s go a little bit further. The Government had made a few rules and regulations to make sure that there is enough transparency in the entitlement of every single petrol pump in all of India.

So the selection process for opening a petrol pump in India are having 2 sections if approved. Hence if somebody is certified in the very first round it is only then the person will be authorized to get through with the second round. So in this blog we will discuss in detail with respect to the complete process of getting a new petrol pump opened in India.

Hindustan Petroleum Corporation Limited, Indian Oil Corporation Ltd and Bharat Petroleum Corporation Limited are one of the prime or in simpler words the epitome of the companies that is into dealing of petrol in India. Also these companies decide which petrol pumps which sell petrol products or diesel products across the country.

So with the help of this blog we will deliberate how the licensing procedure can be carried out in order to obtain a license. This procedure needs to be completed following the below guidelines. How it could be done and what amount of money as an investment is needed to open a petrol pump.

According to the recent numbers that rolled in from the experts and analysts there are 63,660 petrol pumps, wherein majority of these pumps fall under the public sector organizations. On the other hand 27,370+ of these pumps are in association with IOCL (Indian Oil Company Limited, while the other 14,580+ are in union with the BPCL (Bharat Petrol Pump Company Limited) and the remaining 15,280+ are in kinship of the HPCL (Hindustan Petroleum Company Limited)

What may be the probable reason behind India erecting the deliberated Petrol reserves?

Around the corner there is a contemporary qualifying rules that have been implemented to push the transparency of the licensing procedure. To show how transparent it is with respect to the procedure, you need to qualify for the first step of precondition certifying that the admission will be granted in the second stage.

So come on let’s have a closer and detailed look on the first as well as the second phase of the selection process

Qualifying for the eligibility criteria: The first step of the process

This is the steps useful how to apply for petrol pump

1. The person or individual who is applying should be an Indian inhabitant. And just in case if she/he is a NRI (Non Resident Indian) then he should be staying back in India for no less than 180 days which is 6 months.
2. The individual’s or the applicants age should be somewhere between the age group of 21 to 55 years (In case the applicant is a freedom fighter category are free from this condition).
3. For the purpose of running a check of the appropriate age proof, the individual is supposed to submit a Xerox copy of the SSC mark sheet.
4. If in case any individual who is applying is residing in village or remote area and falls into the category of ST/OBC/SC then it is mandatory for them to be at least educated till SSC. But if the same applicant does not fall into the same category then he should be a pass out from HSC.
5. The condition is completely different for the ones who wish to open a petrol pump in the city then he/she must be a graduate.
6. When a freedom fighter is applying for the same, the criteria for the education is not at all applicable or exempted from the condition.

In what way, the National Highways are named in our country?

Qualifying for the eligibility criteria: The second step of the process

So if anyone gets a clearance in the first criteria of edibility he/she is now into second stage.

What will be the least amount for the purpose?

For instance when a petrol pump is opened in the remote areas the least amount of funds needed is Rs 12 Lakh. And if the opening is to be done in the city then the costs may just double up as the amount needed would be Rs 25 Lakh. The procedure of how to open petrol pump in India is quite length though.

Simultaneously, one thing to remember is that the amount should be in the below form

Besides the cash and jewelry, the funds can also be in the form of

1. Mutual Funds
2. Bonds
3. National Saving Certificate
4. Share of listed companies in the DEMAT account
5. Saving accounts, deposit with banks / Registered Company / Postal Scheme

On the other hand just the 60% value of the so called mutual funds, shares and bonds which will be preferred for being qualified for completion of eligibility criteria

The need of real estate

The most important thing for opening a petrol pump is the selection of the land for the petrol pump owners. For the individual it is a must to have a piece of land or real estate in the area or if just in case of not having any land one can also take it on lease for the least period available. There will be a need to produce all sort of documents in case of having a land in possession

The companies that market and deal in oil checks the location right before the petrol pumps are being proposed. These companies need to run a check on the location whether the location will be able to generate sufficient sales of petrol and diesel.

In some cases the oil companies do this with an open tender for specific places where upon the pump is to be opened. Usually oil companies give the preference to those when opening the petrol pump close to State Freeways, busy and congested market areas and National Highways.

For a petrol pump on Highway

Usually, the least space required for a petrol pump is approximately between 750 square meters & 1200 square meters when it is a highway PETROL pump.

The charges for license and application for petrol pump

At the present, the fee for licensing for a petrol pump is roughly between Rs 18.80/KL and Rs 18/KL for motor spirit whereas the price for the High speed diesel is Rs.16/KL for a petrol pump dealership owned category falling in “B” or “DC” retail outlet sites it is Rs 48/KL for motor speed and the High speed diesels is costing about Rs 41K/L.

Petrol Pump Application Fees

The fee of the petrol pump application is Rs.1000/- for standard retail outlets and Rs.100/- for the urban retail outlet. Those applicants that belong to the ST/SC categories can avail a 50% concession on the application fees. The applicant needs to pay up the fee of application only with a demand draft as one must know that the fee is non-refundable. The other thing is that an individual can apply for only one location only.

Also one thing to not is that if  the land belongs to the dealer than the applicants need to pay a fixed amount of Rs.15 Lakhs which is non-refundable for the standard retail outlets in urban areas whereas the charges for the rural area outlet is 1/3rd of the amount above mentioned which is Rs.5 Lakhs. This is how to get petrol pump dealership.