Is opening petrol pump profitable in India?

Many people plans to launch a petrol pump. The idea is certainly good in the time when crude is the necessity for the economy and livelihood. But before implementing the idea it is advisable to do enough research and get expert opinion if required. Today we are going to learn the some facts and guidance related to the idea. Let’s have a look what Mr. Pankaj Singh, a Petroleum engineer from Rae Bareli, UP, India thinks of it.   

Pankaj says, companies like IOCL, BP, HP publish tenders for opening Petrol Pumps for particular areas, in every single driving Newspaper. So keep your eyes open for it.

Next you ought to have a plot or land close interstate or primary highways of your city. You should be willing to give labor (i.e… individuals who’ll work at the Petrol Pump) The most expensive thing in any Petrol Pump is the “Underground Tank”. So choose carefully what number of Underground Tanks you can put resources into. Since if your Petrol Pump doesn’t draw in numerous customers, at that point you’ll cause harm and will be in a HUGE obligation.


Last but not the least. you should be willing to bribe the concerned the field officers of the area where u want to open a Petrol Pump. (It never works without bribing 🙂 ). A petrol pump dealer’s profit totally depends upon amount of liters sold in a month. In case of diesel the commission is around Rs. 0.70 per liter (varies for every dealer) whereas for petrol the commission comes up at around Rs. 1.05 per liter(varies).

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Just do a study on the sales you are going to generate. You should sell minimum of 5000 liters daily of both to cope up your expense like labor, electricity and all.. If you own the land, you can lease it to company. Also calculate the value of your land that you are leasing out and once the tank and meters are in place, it is life long and the property is not in your hand and you cannot look back or stop the same.

In this business, you do not have even a single holiday! It should be functioning 365 days a year! If you have money, invest in commercial building which is a good revenue rather than burning your self.

This answer is posted by Pankaj Singh on

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