Petrol Pump Dealership in India: Everything you should know

Petrol Pump Dealership in India: Everything you should know in 2023

Petrol Pump Dealership in India: A petrol pump deal is always a good opportunity for people who are looking to save money.

This article will tell you all about the different aspects of bidding for a petrol pump deal in India, along with the cost, procedure, and the chances of bid winning.

What is a petrol pump dealership?

In India, petrol pumps are called PP dealership. A petrol pump is a convenience store where motorists can buy petrol and diesel.

In most cases, the dealership also sells other automotive items such as tyres, brakes and accessories.

Petrol pumps are usually owned by major oil companies or their subsidiaries. Dealerships sell fuel in bulk and offer a variety of discounts and services such as roadside assistance.

Advanced Petrol pumps may have self-service kiosks where drivers can fill up their tanks without having to speak to a salesperson.

The cost of a litre of petrol in India varies depending on the location. In Mumbai, for example, a litre of petrol costs Rs 94.91 while in Chennai it costs Rs 96.30. The price of diesel also varies but is usually cheaper than petrol.

The chance of winning a bid at a petrol pump dealership in India depends on factors such as the eligibility or qualification of a dealer, the location, technical compatibility and profitability from the site.

The total cost of setting up a petrol pump dealership in India

The total cost of setting up a petrol pump dealership in India can vary depending on the location, but on average it will cost around Rs. 50 lakh excluding the cost of land.

The procedure for bidding for a petrol pump dealership in India is relatively straightforward and the chances of winning are high, especially if you are able to provide competitive quotes.

The procedure to set up a petrol pump dealership in India

If want to set up your very own petrol pump dealership in India! Whether you’re a first-time entrepreneur or have experience in the petrol retail industry, the process of setting up a petrol pump dealership can be daunting.

Procedure –

  1. In first step you need to see the advertisement and fill the application for petrol pump dealership
  2. Then in second stage you need to verify your all documents which may confirm your eligibility
  3. Once your documents are verified you will need to participate in bidding process by paying the required fee
  4. If you win the bidding then you have to obtain the required licenses and NOCs from various departments in your locality
  5. Then you have to fully prepare the site for the operations
  6. Finally you need to install the machinery to start selling the patrol and diesel

The Total Cost of Setting Up a Petrol Pump Dealership in India

To start off, it’s important to understand that setting up a petrol pump dealership in India is not cheap.

The total cost of starting up a petrol pump business can range from 50,00000 to 150,00000, depending on the size and scope of your venture.

Here’s a breakdown of the total costs associated with setting up a Regular ROs / petrol pump business in India for an open category:

ParticularsEstimated cost (INR)
Land costs 1000m2 to 2000m2 + Development50,00000
Application fees10,000
Licences Fees including GST20,0000
Bidding Amount (Non-refundable)15,00000
Security Deposit (Open category)5,00000
Other (Air compressor, water fridge, generator, and other accessories)10,00000
Operating liquidity20,00000
Total (Estimated)1,02,10000 INR

Infrastructural Facilities required to open a Petrol Pump: Data from above table

  • Developed land with boundary
  • Tanks, Dispensing Units, Signages, Automation, etc.
  • Sales Office, Store Room, Toilet, Electrical Room, Water Connection, Yard Lighting, etc.
  • Generator / Invertor
  • Compressor with Electronic Gauge for Air Filling (As decided by OMC)
  • Driveway
  • Canopy (as per Corpn. requirement)
  • Customer Convenience Facilities like – Clean Drinking Water, Maintenance of Neat & Clean Toilet, Telephone, etc.

India is one of the most populous countries in the world with over 1.3 billion people. With so many people, it is no surprise that there are a lot of petrol pump dealerships in India. In fact, there are over 2,500 petrol pump dealerships in India alone! That’s a lot of competition for bids!

The average bid for a petrol pump dealership in India is around Rs.15 Lakh. However, the price can range from Rs.500,000 to Rs.15 Lakhs. The higher the price, the more competitive the bidding process will be.

The bidding process for a petrol pump dealership in India is fairly simple. First, interested parties must submit a detailed proposal outlining their plans for the dealership. by visiting the official portal for the Petrol Pump Dealer Chayan.

After reviewing the proposal, the auctioneer will decide who to auction off the dealership to. The auctioneer may choose to auction off the dealership partially or fully.

Is petrol pump dealership profitable?

Petrol pump dealership in India is a lucrative business. With huge potential for growth, it’s important to know the total cost of setting up a petrol pump dealership, the procedure for bidding and the chances of winning.

The total cost of setting up a petrol pump dealership can vary depending on the location, but on average it will cost between Rs 5 lakh and Rs 25 lakh. The procedure for bidding and the chances of winning are as follows:

  1. First, identify an area that has high consumer demand for petrol pumps. In general, areas with a large population, National Highways and a strong economic base are more likely to be successful.
  1. Next, identify which types of petroleum products are popular in your region. This will help you decide which brands to sell.
  1. Finally, decide how much liters petrol and diesel you can sell each month and estimate the necessary investment. Keep in mind that you will need to invest in infrastructure such as fuel tanks and pumps as well as in marketing materials such as signage and ads.

Petrol pump dealership advertisement 2022

Are you looking for a petrol pump dealership in India? If so, you have come to the right place. Here, we will discus Petrol pump dealership advertisement 2022.

Currently, there are no any active advertisement for petrol pump dealership in you state. As soon as the advertisement opens, we will update this page.

Please don’t forget to bookmark this web page. You can also subscribe this page for alerts related to the Petrol Pump Dealership, as whenever we update this page you will get an automatic notification on your phone.

How to check petrol pump dealership

Petrol pump dealerships are ubiquitous across India and offer a variety of fuel options. It is important to know the total cost of your desired fuel before making a purchase, as well as the procedure for bidding.

Here is a guide on how to check petrol pump dealership and calculate the total cost of your desired fuel.

To check petrol pump dealership for your region you can visit the official website of the ‘Dealer Chayan’.

Pro Tips: Before you start, find an open petrol pump in your locality and look at the price labels above the pumps.

The prices you see will be for a particular grade of fuel, which you can ignore for now. In addition to the price per litre, you will also see a number next to it that represents the octane rating of the fuel.

This is important because higher octane ratings mean that the fuel will resist “knocking” or “pinging” during combustion, which can lead to engine performance issues.

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Once you have identified the grade of fuel you want, determine how much you want in liters or how much sales you can generate each month.

How to apply for a petrol pump dealership

The procedure for setting up a petrol pump dealership in India is relatively straightforward.

First, an application must be filed with the government authorities through the Dealer Chayan Portal.

You must also go through the bidding and scrutiny process.

Next, a detailed plan must be drawn up and submitted to the government for approval.

Finally, construction must begin and the station must be operational by the specified date.

The chances of bid winning for a petrol pump dealership in India are very high. However, it is always important to consult with an experienced business advisor before making any decisions.

A petrol pump dealership is an ideal business opportunity for those who are looking to start their own business.

With a steady supply of fuel, petrol pump dealerships offer a reliable income.

Here is some tips on how to apply for a petrol pump dealership in India:

1: Calculate your total cost of starting the business. This will include the initial investment in equipment and fixtures, as well as the upfront costs associated with operating the business such as advertising and marketing. You will also need to factor in any taxes that will be levied by the government.

2: Get your business license from the relevant authorities. In most cases, you will need to apply through the Dealer Chayan Portal. You will need to provide evidence of financial stability, proof of ownership of the property where the petrol station will be located, and proof of insurance cover for the premises.

3: Prepare a marketing plan. This should include plans for advertising and promotional activities such as displaying signs and banners at strategic locations near your target market, conducting market research, and setting up social media accounts.

You should also consider developing exclusive deals with suppliers of goods and services that are complementary to your petrol station operations.

Chances of Winning: There is no guarantee that you will win a bid on a petrol pump deal in India. However, if you are knowledgeable about the company and have the funds available, it is worth investigating potential opportunities.

How much should I invest in a petrol pump?

When it comes to petrol pumps in India, there is no one-size-fits-all answer.

However, the total cost of petrol and other related expenses (like maintenance) can vary greatly depending on where you live and what kind of fuel your vehicle uses.

The average investment amount should range from 30 lakh to 70 lakh.

Remember that prices can change at any time, so it’s always best to confirm the cost before heading to the pump.

  • Type of Fuel
  • Price per liter (INR)
  • Stationary Engine(s) \/ Petrol Pump*
  • Auto Rickshaw/3 Wheeler \/ Petrol Pump*
  • Motorcycle \/ Petrol Pump*
  • Car \/ Petrol Pump*

Which company is best for a petrol pump dealership?

When it comes to petrol pump deals, there are many companies to choose from in India.

However, which one is best for your business? Here’s a look at the best oil companies in India –

  • Reliance Petroleum
  • Indian Oil
  • Hindustan Petroleum (HP)
  • Bharat Petroleum

What is the profit margin on petrol?

Petrol prices in India are high, and the profit margins of petrol pump dealerships are high too. This means that while the prices of petrol at the pump may seem cheap, the actual cost to the dealer is high.

Currently, the commission of the seller will vary from 2.5% to 4% per liter sold.

Document required for petrol pump dealership

Below are the documents required if someone wants to open a petrol pump dealership in India –

  • Aadhaar Card
  • PAN Card
  • 10th Marksheet
  • ITR details (If any)
  • GST Registration
  • Bank passbook
  • Land ownership-related records like – Khasra, Patta etc
  • NOC from various departments like – Forest Department, Municipalities, and so on

Eligibility Criteria for petrol pump dealership

In India, there are many petrol pump dealerships available in different parts of the country. However, before you can apply to become a petrol pump dealer, you first need to meet certain eligibility criteria.

To be eligible for the petrol pump dealership business in India, you must be at least 21 years old along with other eligibilities –

CitizenshipHe should be an Indian
Residential statusResident of India
AgeMinimum 21 and Maximum 60
Educational qualificationPassed Minimum 10th
Land ownershipApplicant should own land or have taken on lease for min 30 years

Once you meet these eligibility requirements, the process of applying to become a petrol pump dealer is fairly simple.

You will need to fill out an application form and submit it to the appropriate government agency.

After your application has been processed, the agency will contact you to schedule an interview.

If you pass the interview process, you will then need to submit a bid proposal to the government agency.

Your bid proposal will include information about your dealerships, such as its location and the capacity of the pump.

The government agency will then decide who will win the contract to operate the petrol pumps in your area.

If you are interested in becoming a petrol pump dealer in India, be sure to research all of the eligibility requirements first before submitting an application. There is no

Fund Requirement to Set up an Oil Firm in India

When it comes to setting up an oil firm in India, there are a few fund requirements that need to be met. The first and most important requirement is having access to capital.

This can come from a variety of sources, such as private investors, venture capitalists, or international financial institutions. Once you have the capital, you will need to set up a business structure and find employees.

This process can be time-consuming and complicated, so it is important to consult with an attorney if you are unsure about how to go about it.

There are also taxes that must be paid when setting up an oil firm in India, so make sure you are aware of all the costs associated with starting up an oil business.

In order to win a bid, your proposal must be above average compared to other bids submitted by other companies. Additionally, you will need to have a strong understanding of Indian oil market conditions and regulations.

If you meet all the requirements listed above and can demonstrate a track record of success in similar ventures.

Requirement of land to set up a petrol pump in India

India is currently the world’s second-largest oil consumer, and the country is expected to become the world’s top fuel consumer by 2027.

With this increase in demand for petroleum products, there has been a corresponding increase in petrol pump installations across India.

In order to ensure that you get a petrol pump lease or purchase in India, it is important to know the requirements that must be met.

In order to set up a petrol pump in India, you will need an approved commercial land plot with an approved building on it.

The land must be of good quality and free from any restrictions such as wetlands or wildlife sanctuaries.

The ideal size of the land for the Petrol Pump shop should be between 900 m2 to 1,500 Square Meters.

Once you have obtained the required approvals and purchased or leased the land, you will need to obtain permits from local authorities.

These permits may include permissions for construction, installation of pumps and other related infrastructure, and operation of the petrol station.

You will also need to file tariff proposals with the Indian Oil Corporation (IOC), which will determine the price at which petrol will be sold at your petrol pump.

Application Charges

The application fee may vary depending on the type of ROs, for example –

Fee for Regular ROs (Non-refundable):

Locations reserved for SC/ST categoryRs. 3000/-
Locations reserved for OBC categoryRs. 5000/-
Other locationsRs. 10000/-

Fee for Rural ROs (Non-refundable):

Locations reserved for SC/ST categoryRs. 2500/-
Locations reserved for OBC categoryRs. 4000/-
Other locationsRs. 8000/-

License Fee

The government has set up a number of regulations to ensure that businesses operate within the law and this includes setting up rules for petrol pump dealerships.

In order to open a petrol pump dealership, you will need to obtain a license from the government.

For the investments made at the RO towards Land and infrastructure/facilities by the
Corporation, Licence Fee would be payable on a per KL basis by the dealer as applicable from time to time.

In the case of Corporation owned “A” / “CC” site ROs, including ROs developed under Corpus Fund Scheme for SC/ST category dealerships, the current Licence Fees including GST are as

PetrolRs. 472.77 / Kl
DieselRs. 393.97 / Kl

For Dealer owned “B” / “DC” site ROs the current Licence Fees including GST are as under –

PetrolRs. 233.45 / Kl
DieselRs. 194.54 / Kl

Challenges in the Petrol Pump business in India

With the soaring prices of petrol and diesel, it is important for individuals to be well-informed about the different deal dealerships in India.

When it comes to bidding for fuel contracts in India, there are a few key challenges that dealerships need to overcome. First, many dealerships are not aware of the various government subsidies that are available.

This can lead to them submitting a low bid, as they are unaware of the potential benefits that they could gain. Second, many dealerships do not have the required infrastructure in place to distribute fuel effectively.

This can result in them being unable to win bids from major oil companies. Finally, dealerships often lack the negotiating skills necessary to win bids from major oil companies.

To increase their chances of winning a bid, dealerships should focus on developing strong relationships with major oil companies.

They should also make sure that they have the necessary infrastructure in place to distribute fuel effectively.

In addition, dealerships should focus on improving their negotiating skills so that they can better compete with larger ones.

Pros and Cons of having a Petrol pump in India

A petrol pump is a convenient and economical way to get fuel for your vehicle.

However, there are a few things to keep in mind if you’re thinking of having one in your neighborhood.


  • Convenient location – usually located near major roads and highways
  • Wide variety of fuel types and prices
  • Reasonable turnaround time for getting fuel
  • High earning business


  • Prices can be high, especially compared to prices at filling stations in Madhya Pradesh.
  • Not all pumps offer the same quality of fuel
  • Can be crowded, especially during busy times
  • It requires high precautionary measures like – fuel leakage and fire prevention etc.
  • Owners may face low revenue initially.


Every person has different needs and wants, which is why it’s important to do your own research before making a decision.

That being said, here are some factors to consider when looking at potential petrol pump dealerships:

  • The total cost of a petrol pump deal (including paperwork, deposit, and any installation or equipment fees)
  • The procedure involved in bidding on a petrol pump dealership
  • The chances of winning the bid.

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