Setting up a petrol pump in India involves a structured process, and obtaining a license is a crucial step in this venture. With the increasing demand for fuel across the country, the petrol pump business presents a lucrative opportunity. However, navigating the licensing procedures is vital for a smooth establishment.
To initiate this process, individuals or entities must adhere to the guidelines laid out by the government. The licensing authority, typically the State Level Coordinator of Oil Industry & Petroleum Planning, governs the issuance of petrol pump licenses. The application process encompasses various stages, including eligibility checks, site feasibility assessments, and compliance with safety standards.
Eligibility requirements to obtain a Petrol Pump License
The applicant must be a citizen of India.
The applicant must be a resident of India or in the previous financial year, he must have spent more than 182 days in India.
The age of the applicant must be between the ages of 21 to 58.
A document proving your identification is needed.
The age of the applicant should be verified by presenting a copy of his or her matriculation Certificate (10th), Secondary School-Leaving Certificate, Passport, Birth Certificate, etc.
What Are the Criteria for Opening a Petrol Pump?
- The person must be an Indian citizen.
- The applicant should be a resident of India, meaning they must have stayed in India for more than 182 days in the preceding financial year.
- The age of the applicant must be between 21 and 58 years.
- Individuals classified as freedom fighters are not eligible.
- A valid identification document is mandatory.
How Much Money Required for a Petrol Pump License?
To obtain a petrol pump license in India, candidates must demonstrate the financial capacity to invest a minimum of Rs. 25 lakhs for a standard petrol pump and Rs. 12 lakhs for a rural petrol pump.
Institutional investors can use various methods such as bonds, shares of listed companies in demat form, national savings certificates, deposits with banks, registered companies, postal schemes, shares of mutual funds, and more to meet the investment requirement.
It’s important to note that assets with unproven provenance, such as IOUs and jewellery, will not be considered. Additionally, only 60% of the total value of shares, collective investment schemes, and notes will be considered in the assessment. Additionally, a Chartered Accountant must provide the necessary investment assessment certification for the petrol pump license application.
How Much Land Required for Petrol Pump Dealership?
- Proximity to the Highway:
The land should ideally be located alongside a highway, ensuring easy accessibility for customers.
- Ownership or Rental Contract:
Candidates must either own the land or have a valid rental contract for a suitable property near the proposed site.
- Formal Offer for Acquisition:
Preferential consideration is given to candidates who have a formal offer for acquiring or entering a long-term rental agreement for a suitable piece of land.
- Documentation:
Applicants must provide various documents demonstrating ownership of the property or their intent to acquire the specified piece of land. The size of the land should meet the specified requirements.
- Property Improvement:
If selected for the petrol pump franchise, applicants must enhance the property to street level by appropriate earthwork procedures. This includes creating a concrete structure and a composite wall with a minimum height of 1.5 meters, considering soil conditions.
How to apply for Petrol Pump License?
An applicant can apply online and the procedure for getting the petrol pump license is given below:
Visit the site of www.petrolpumpdealerchayan.in.
Press Register Now which is given on the home page.
Fill out the form and create an account for further processing.
Login with your Id and Password and then click on Available Advertisement which is located on the dashboard.
Now select the name of your preferred company and your resident state.
After that, you will see the place in which the company wants to open the petrol pump in your selected state.
Choose your nearby area then click on Apply Now
Now fill out the form within the given time limit which is 40 minutes.
Select Individual or Partnership from the drop-down box and pay the fee of Rupees Ten Thousand.
Now fill in your personal and necessary information, upload your photo and signature then click on Submit button.
Now you will pay the fee to complete the process.
FAQs
What is the petrol pump license fee in India?
The license fee for a petrol pump dealership in India ranges from Rs. 18/KL to Rs. 48/KL for motor spirit, depending on the category of the retail outlet.
Can I sell petrol without a license?
No, it is illegal to sell petrol without a license in India. A petrol pump business requires various licenses and permits to operate legally and in compliance with regulations