Petrol pump business is one of the most lucrative business models across the world. Though establishing and running a petrol pump business might seem daunting to many, given the number of formalities and administrative procedures involved, the returns far outweigh the efforts. Here’s a comprehensive guide to establishing and running your very own petrol business.
Here’s a list of Bajaj Markets’s partners for business loans and their terms:
Our Partners |
Interest Rate Range |
Max Loan Amount/ Tenure |
Avail Loan |
20% onwards |
36 months |
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28% onwards |
36 months |
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12% onwards |
36 months |
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18% onwards |
60 months |
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20% onwards |
48 months |
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16% onwards |
36 months |
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15% onwards |
9 months |
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15% onwards |
36 months |
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1.25% p.m. onwards |
72 months |
Disclaimer: The interest rates and terms are subject to change at the lending partner’s discretion.
There are some eligibility criteria that you’ll have to meet in order to establish your petrol pump business, here they are:
You must be between the ages of 21 and 55.
You must be an Indian citizen.
NRIs can establish their own petrol pump units, provided they have stayed in India for at least 182 days.
An educational qualification of 12th standard or higher is compulsory for General category applicants and 10th standard or higher is compulsory for SC/ST/OBC applicants; freedom fighters who come under the CC2 category need not meet the educational criteria.
In order to establish a petrol pump in urban areas, the applicant must hold a graduate degree.
Your business area must not be a part of any blacklisted or excluded zone.
Here are some documents required to get started with a petrol pump business unit, bear in mind that the documents required may vary depending on the OMC you choose. Hence, you can use this list as a starting point
Residence certificate
Here’s how you can apply for a business loan on Bajaj Markets:
Click on ‘Apply Now.’ on this page
Now fill in relevant personal and business details.
Choose your preferred lending partner from the list of lenders.
Choose your loan amount and repayment tenure.
Post approval, your loan amount will be credited to your bank account.
There are a number of OMCs that you can choose from, depending on your priorities and needs. To choose an OMC that’s ideal for you, do a thorough analysis of all relevant OMCs and map out their pros and cons to arrive at your preferred OMC.
You can visit your preferred OMC and follow the instructions indicated on their website to get started with obtaining your petrol pump licence.
The minimum amount that you’d need in order to get started with a petrol pump business is ₹12 Lakhs in case of rural business units and ₹25 Lakhs in case of urban business units.
Petrol pumps get a commission of around ₹2.90 per litre of petrol and around ₹1.85 per litre in the case of diesel.
The licence fee for a petrol pump dealership is ₹18/KL for Motor Spirit (MS) and ₹16/KL for High-Speed Diesel (HSD) for dealer owned “B”/“DC” site Retail Outlets and Rs 48/KL for Motor Speed and ₹41/KL for High-Speed Diesel for a corporation owned “A”/“CC” site Retail Outlets.
Bharat Petroleum, Indian Oil and Hindustan Petroleum are three of the most pop
In Company Owned Dealer Operated Petrol Pump, the dealer leases their land to a company, the company then makes the investment. Whereas in the case of Dealer Owned Dealer Operated Petrol Pump, the dealer provides the land and also makes infrastructure investments.
Though setting up a petrol pump in India is a high-investment business idea, it is also an extremely lucrative one.