A Guide On Ways To Apply For A Petrol Pump Dealership In India

Petrol Pump Dealership Cost How To Start Petrol Pump -B.TechBabu

You would desire to do business, and that is always the best way to generate wealth. Unless you have a very high salary, it is never possible to fill the luxurious desires of life. However, business venture has an element of risk, and there are problems during slowdown periods. Hence, as you search for a business venture idea, the key will be to look for something, which is recession-proof. The idea, which we would like to present you with, is of a petrol pump dealership. It is one of the most lucrative businesses in India today. As long as vehicles are operating on the road, the business should constantly generate cash flows. 

Many firms are offering a dealership.

There are today multiple oil companies offering the dealership to run a petrol pump. You can certainly apply for an Indian Oil petrol pump dealershipSome private players have made a foray into oil marketing, and the options of seeking a dealership are more. You can apply for an Essar petrol pump dealership or a Shell petrol pump dealership. Hence, there are abundant options for someone looking for a petrol pump dealership today in India. We would now like to discuss the criterion for application.

An insight into the minimum eligibility to apply for a petrol pump dealership

Your key question will be on how to apply for a petrol pump dealership, and we have the answers ready. It is a long list, and let me take you through the details. 

  • The applicant must be an Indian citizen, and this part will not be compromised. You could apply for an HP petrol pump dealership or with private players, and the applicant must be a citizen of this country. 
  • There is also an age limit clearly stated in the guidelines of the Indian Oil petrol pump dealership application form 2018. The application age limit for an average person is 21 to 55 years. There are exceptions for freedom fighters, and they fall under the CC2 segment. 
  • There is also an education criterion to fulfill as you apply for a petrol pump dealership. If you use for a dealership in the hinterlands, you will have to pass 10+2 exams conducted by any board. However, if you intend to apply for a dealership in urban areas, the educational qualification requirements are a bit more.

There is a need to pass a graduation-level course or CA or even achieve a diploma in engineering. One should also note that the rule of minimum education is not applicable for freedom fighters who apply in the CC2 segment. 

What is the initial investment required to set up a petrol pump dealership

Every business requires some capital expenditure, and it should be no different here. If you intend to apply for a rural dealership, the minimum sum requirement is 12, 00,000, and for an urban dealership, the minimum requirement is Rs 25, 00,000. The applicant will have to submit it in the form of collateral. However, the IOC or Bharat petrol pump dealership advertisement 2018 guideline clearly states that there is no need to raise the entire amount in cash. There is the scope to deposit as collateral, equities in Demat form, mutual funds, NSC certificates.

petrol pump dealership investment

image source : Infi feed YouTube channel

You will need land:

The collateral is the minimum amount necessary to start a petrol pump dealership, and there are more costs to incur. An essential expense that you will need to incur is purchasing land unless the inherited property is at a suitable location. One will need to own this land or work out a long-term lease with the owner. The area of 800 square meters to 1200 square meters is sufficient to start a petrol pump.

The license and application fees :

The costs do not end here, and next on the agenda is the license and application fee to incur for a petrol pump distributor. The application fee is Rs.1000/– for regular retail outlets and Rs.100/– for rural retail outlets. One also needs to get an idea of the license fee for opening a petrol pump today in any part of India. It is Rs.18/KL for Motor Spirit and Rs.16/KL for High-Speed Diesel.

petrol pump dealership plan

What is the profit margin for a dealer?

Before you invest, there is always be a desire to know about the petrol pump dealership’s profit margins. The standard profit margin is Rs 1.8 -2.4 for selling 1 liter of petrol and Rs 1.2 -2.4 for selling 1 liter of diesel. This is not very attractive, but if you can select a good location, a dealer can generate huge profits. A good place also helps you cut down on transportation costs, which will only boost profits. 

How to make the application process

One can see that there are good profits to be earned by opening petrol pump dealerships. There is just the need to select a strategic location for the pump, and the cash flow will quickly start flowing in. Hence, you could be planning to apply and let us discuss the process. 

  1. The first step will be to stay alert for any advertisement from the oil marketing companies inviting applications for petrol pump dealerships. There could be advertisements, notifications in news dailies or even the company websites. 
  2. Once you notice such applications, you can submit the online applications. There is a need to stay alert for the last submission date, and you will need to apply by then. 
  3. If you have applied online, there is also a need to submit a hard copy. It should be submitted and the entire set of documents within seven days after the last date has expired. 

This is more or less the application process, and if there are too many applicants, the OMC conducts a lottery system to select new dealers. If luck is by your side, you should win a dealership for a petrol pump and start the operations. The cash should be flowing in quickly, and the business will blossom. 

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