How to get petrol pump dealership? Check how to apply to open fuel station

Looking to open a petrol pump? Running a petrol pump is one of the best business ventures at present. There are number of questions like investment required to run a petrol pump, process of acquiring a license, required land and so on. Several oil companies like Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), Indian Oil (IOCL), Essar Oil or any other oil company provides their dealership to people.

Here is the detailed information about the eligibility, fee, procedure, investment, land etc:-

- The requirements to open a petrol pump station:

1. An individual must be an Indian citizen and a resident of India as on the date of affidavit.

2. The age of an individual should be within 21-55 years (except for Freedom Fighters under CC2 category).

3. The minimum educational qualification for rural dealerships is 10+2 examination conducted by a Board/University and Graduation/ Chartered Accountant/ Company Secretary/ Cost Accountant/ Diploma in Engineering for urban dealerships. For candidates under CC1 and CC2 category, minimum education required is class 10th and class 10+2 examination conducted by a board/university for rural dealerships and regular dealerships respectively. However, this rule of minimum education is not applicable to freedom Fighters in CC2 category.

Minimum fund requirement for a petrol pump dealership:

Minimum sum of Rs 12,00,000 and Rs 25,00,000 respectively is required for rural dealerships and regular dealerships. However, as per the norms, required fund or investment can be in the form of savings accounts, deposits with bank/registered companies/postal schemes or bonds or shares of listed companies in de-mat form or mutual funds or National Savings Certificates etc. 

Land requirement for petrol pump dealership:

All the applicants must possess a suitable land as per the size, location and other requirements, mentioned in the company's advertisement. The individual should either own it or have it on long term lease for a minimum time period as given in the notification.

License and application fees for petrol pump station:

The license fee for a petrol pump dealership is Rs. 18/KL for Motor Spirit (MS) and Rs.16/KL for High-Speed Diesel (HSD) for dealer owned “B”/“DC” site Retail Outlets and Rs 48/KL for Motor Speed and Rs.41/KL for High-Speed Diesel for a corporation owned “A”/“CC” site Retail Outlets.

The application fees for the pump is Rs. 100 for rural ROs and Rs. 1000 for regular or urban ROs. Also there is a 50 per cent concession for candidates under SC/ ST category. The application fees must be paid by the means of Demand Draft (DD) in favour of a respective Oil Company. The fees shall remain non-refundable. Also, the applicant cannot apply for more than one location for a petrol pump delaership as per the norms. 

In case of Dealer Owned / Company leased sites, non-refundable fixed fees of Rs. 5,00,000 is required to be paid for rural dealerships and Rs. 15,00,000 is required to be paid for regular dealerships. In case of Corporation owned sites which involves bidding for allotment, bidding amount of Rs. 10,00,000 and Rs. 30,00,000 is applicable for rural dealerships and regular dealerships.

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Process of applying online for a retail outlet of HPCL/ BPCL/ IOCL etc:

1. The first step is to look out for a notification or an open advertisement by any of the oil company. Advertisements and notifications are generally published in newspapers and on official websites of the oil companies. The advertisements or notifications carries the information about location/s where company proposes to open a retail outlet of a petrol pump. The interested candidates can apply for the license for opening petrol pump in desired state/ city/ town/ area. 

2. Online applications can also be submitted at official websites of oil companies. All the applications should be submitted before the last date of submission. All hard copies should be submitted along with important documents within seven days of the expiry of the last date of online application. 

Note: Regular ROs\dealerships means locations on highways (NH/SH) and Urban/Semi Urban areas while rural ROs\dealerships means locations in rural areas but not on Highways (NH/SH). All of the above information is as per the petroleum companies and government policies.