Petrol Pump: How much will it cost to open a petrol pump? Know the application process and required documents

Petrol Pump: Petrol pump business has always been considered a reliable and profitable enterprise in India. As the number of vehicles is increasing, the demand for fuel is also continuously increasing. In such a situation, opening a petrol pump can become a sustainable and profitable business. If you are also planning to step into this field, then you should have complete knowledge about its process, necessary permissions and preparation.

Choosing the right location is the first step

The success of any petrol pump depends on its location. Priority should be given to such places where there is more traffic and people can easily reach them. Opening petrol pumps along national and state highways, on the outskirts of busy cities, or in rapidly developing areas is considered the right decision from a business point of view.

mandatory to obtain license

To open a petrol pump, it is necessary to obtain a license from the petroleum companies. Major oil marketing companies in India such as Indian Oil, Bharat Petroleum and Hindustan Petroleum invite applications for new dealerships through advertisements from time to time. The interested person has to go to the company’s website and fill the application form and upload the required documents.

Infrastructure and technical preparedness

After getting the license, the infrastructure of the petrol pump has to be developed. This includes security arrangements like underground tank, dispensing units, office, electricity, water system, staff room and CCTV. This entire structure has to be built as per the prescribed standards and guidelines of the Petroleum Ministry.

Government permissions and documents

Before starting a business, it is necessary to obtain some mandatory permissions from the government. Among these, Environmental Clearance, Fire Safety Certificate, Local Body Permission (Municipal/Nagar Palika Clearance), Change of Land Use (CLU) are prominent. It would be illegal to operate a petrol pump without these permissions.

Staff and Promotion

After establishing the petrol pump, you will have to appoint qualified employees who can provide better service to the customers. Also, good branding and promotion of the pump is also necessary so that people know about your pump and start buying fuel from there. Companies also provide assistance in branding to dealers.