One of the most highly profitable businesses that you can start in India is the petrol pump business. All over the globe, oil is a highly beneficial natural resource, and it is almost equivalent to the value of gold in most countries. 

With increased infrastructure facilities and ever-growing demand for transportation, shipping and logistics, petrol has become a shared resource. This has increased the need for starting a petrol pump business in the country. In a developing country like India, there has been an increase in the usage of automobiles in the past few decades. This has contributed towards creating a demand for petrol pumps in the country. 

Today, petrol has become a shared resource for every man. Whether you belong to the high-income or middle-income group, petrol has become necessary for every individual today. However, we understand that starting a petrol pump business requires a higher range of investments. 

Unlike other businesses, a petrol pump business involves a lot of legal formalities and paperwork. This article will talk about everything you must know to start your petrol pump business in 2022. From understanding the demand to figuring out the required criteria, we have all the information you need to start your petrol pump business in 2022.  

Eligibility Criteria for Starting A Petrol Pump Business in 2022

When you are looking to start a petrol pump business, the first and foremost thing you must consider is the eligibility conditions required to launch a petrol pump business. Whether you are an entrepreneur looking to start a petrol pump business or researching how to get a franchise, you must first look into the eligibility criteria. The Government of India has issued eligibility criteria for starting a petrol pump business. The criteria are as follows; 

  1. The owner or partners looking to start a petrol pump business must be Indian citizens. It is mandatory to be an Indian citizen to set up a petrol bunk. However, if you are an NRI entrepreneur and wish to start a petrol pump business, you must have lived for over 182 days within the country’s geographical boundaries. 
  2. The following mandatory requirement is a birth certificate. You must ensure that you have your official birth certificate to start your petrol pump business in India. 
  3. To start a petrol bunk business in India, you must ensure that you have completed 21 years of age; this is the minimum age limit for entrepreneurs to start a petrol pump business. On the other hand, the maximum age limit is 55 years. 
  4. Every individual in the rural area looking to start a petrol pump business must have completed 10+2 certification. For individuals from urban areas, it is necessary to have a university degree from any institution under the control of UGC. 
  5. To obtain a dealership for the petrol pump business, you should have a minimum investment amount of INR15 lakh for investing in rural areas and a maximum of INR2 crore for starting a petrol pump business in the urban areas. 
  6. The location chosen to start your petrol pump business must not fall under any excluded regions or blacklisted zones. 
  7. Lastly, any entrepreneur who wants to start a petrol pump business and belongs to a family of freedom fighters is exempt from these regulations.

Investment and Fee Charges Involved In Starting Petrol Pump Business

Unlike other businesses, petrol pump businesses require a higher amount of investment upfront. The investment limits and fee charges involved in starting a petrol pump business at the minimum level could range between Rs. 15 to 30 lakhs. However, opening a petrol bunk in the urban areas can cost up to two crores, and the land value costs go even higher. Since the investment limits are higher for a petrol pump business, most entrepreneurs opt for financing options and look for other avenues to gather funds and start their petrol pump business. 

Since the nature of the petrol pump business is finance-heavy and risky, it requires a lot of funding. Entrepreneurs cannot receive funds, loans or investments based on liquid cash, jewellery, or current account balance. Instead, their funds become acceptable if they are in the form of savings deposits, bonds, bank deposits, shares in listed companies, mutual funds or even national saving certificates. 

How To Obtain A License For My Petrol Pump Business? 

The next most crucial step in starting your petrol pump business is to obtain all the licenses and certifications. The process, however, is relatively simple. Several oil companies or oil marketing companies put up advertisements on their official websites, newspapers, and other print media. Those interested in starting a petrol pump business in the interested locations usually follow a process. They purchase a form online (INR100 for rural areas and INR1000 for urban areas).  Once the interested candidate has purchased the form, they must fill in all the requisite details related to residence, birth, nationality, educational qualifications and other essential information and submit it on the respective company’s website. 

After the candidate has received the license, they must also ensure that they have a GSTIN number to pay GST and have a current active account in the bank under the name of their respective petrol bunk. Once the license has been approved and sanctioned by the respective authorities, the next step is to get permissions and certificates from the local sources while constructing the petrol bunk. It involves authorisation such as location certificates, NOC certificates and licenses from the respective fire and safety office and the Municipal Corporation of the city. 


The most important thing about starting a petrol pump business is to ensure that you have the suitable investments, market knowledge and the human resources to handle all the ins and outs of your petrol pump business. Though the petrol industry in India is run, managed and controlled by the Central and State Government, there has been a steady rise in the number of private players. With the increasing need for travel and trade, we are sure that starting a petrol pump business would be a highly profitable business venture.

Start your online business by creating an online store with Bikayi in less than 90 seconds. Grow your business with a fully customizable e-commerce website

Follow us :