How to Start Petrol Pump Business in India

How to Start Your Own Petrol Pump Business?

Oil Business in India

Budding entrepreneurs are always on the lookout for lucrative opportunities to start new successful ventures that can provide financial growth and success. One of the business opportunities that is gaining a lot of popularity is starting your own petrol pump in India. Travel and Logistic businesses always have demand which provides for the certainty of healthy long term petrol and diesel consumption. Low and reasonable Business Loan Interest Rates are helping individuals to dream big and venture into new horizons.

Let us understand how an individual can start his/her own petrol pump business in India. The Oil Marketing Companies in India popularly known as OMC advertises its requirements for opening new petrol pumps in required locations across India. These advertisements are published on both online platforms and newspapers. An individual interested can apply either online or can write to these OMCs. If there are many contenders, OMC may announce a winner based on the lottery.

A few of the Oil Marketing Companies in India are:

  • Bharat Petroleum Corp. Ltd. (BPCL)
  • Indian Oil Corp. (IOC)
  • Hindustan Petroleum Corp. Ltd. (HPCL)
  • Essar Oil Ltd.
  • Indraprastha Gas Ltd. (IGL)
  • Oil and Natural Gas Corp. Ltd. (ONGC), etc.

The Eligibility for starting a petrol pump business in India are as follows:

  1. Applicants applying should be in the age bracket of 21 to 55.
  2. Must be a citizen of India (if NRI, must have stayed in India over 182 days).
  3. Class 10th mark sheet needs to be furnished as a birth certificate.
  4. Education qualification should be Class 12th pass for General Category and Class 10th pass for others (for urban area outlet, candidate must be a graduate) with exemption to freedom fighters.

The investment required to start this business depends on the location of the outlet and the type of dealer or company control that will be maintained on the outlet. A petrol pump can be opened as:

  • Regular Retail Outlets: This outlet is located on state/national highways including semi-urban and urban areas.
  • Rural Retail Outlets: This outlet is located in the rural areas of India.

The applicant may consider taking full Dealership (DC) or may opt for company control (CC) over the petrol pump. Both attract different licensing fees.

A capital requirement for opening a petrol pump in urban areas is approximately 20-30 lakhs (if the ownership of proposed land is in the hands of the applicant), whereas it is 10-15 lakhs in rural areas. This source of investment can be from:

  • Bank Deposits
  • Fixed Deposits, Savings Account,
  • National Saving Certificates,
  • Postal Schemes,
  • Mutual Funds, Bonds, and Shares (60% of its value can be considered only)
  •  Jewelry (only if its actual ownership can be established)
  • Business Loan

Other fees and charges applicable to this business include License fees calculated per kilolitre of high-speed diesel and motor spirit, application fees to be paid at the time of applying to OMC, Rent, or Cost of acquisition of land. GST registration is mandatory after receiving the license to operate a petrol pump.


To finance this new venture, an applicant may need a Business Loan to source the capital requirements for starting a petrol pump. Once an applicant passes the Business Loan Eligibility Test they can fuel their business with hassle-free funds and pave their way to success. Our Business Loan EMI Calculator can help you plan your finances and future pay-outs well.

TATA Capital is a one-stop solution for your investment funding, our loan facilitators can guide you through the entire process of sanctioning your business loan. Visit our website today for more information!