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Investment and Profit of Petrol Pump Business 2023

Investment and Profit of Petrol Pump Business

Investment and Profit of Petrol Pump Business

In this article, we will clarify the Investment and Profit of Petrol Pump business 2023.

The petrol pump business continues to be a cornerstone of the global energy industry, serving as a vital link between fuel suppliers and consumers. In 2023, with the world gradually recovering from the COVID-19 pandemic and transportation demands rebounding, the petrol pump business presents an opportunity for entrepreneurs seeking a profitable venture.



Investment Considerations under: Investment and Profit of Petrol Pump Business

Setting up a petrol pump business involves a significant initial investment. The exact amount depends on various factors such as location, size, and infrastructure requirements. Here are some key investment considerations:

  1. Land Acquisition or Lease: The cost of acquiring or leasing land for the petrol pump establishment is a major investment component. The ideal location should have high traffic volume, easy accessibility, and proximity to residential areas, commercial centers, or highways. The cost of land can vary greatly depending on the region and demand.
  2. Construction and Equipment: Constructing the petrol pump infrastructure and installing the necessary equipment, such as fuel dispensers, underground storage tanks, payment systems, safety measures, and signage, are essential. The costs involved in construction and equipment can constitute a significant portion of the investment.
  3. Licensing and Permits: Complying with regulatory requirements and obtaining licenses and permits from local authorities is crucial. Costs associated with obtaining necessary approvals and meeting safety, environmental, and operational standards should be factored into the investment.
  4. Working Capital: Adequate working capital is essential to cover day-to-day operational expenses, purchase fuel inventory, pay staff salaries, and handle unforeseen circumstances. Sufficient working capital ensures smooth business operations during the initial stages.

Also Read: What is CC / DC Site and Group 1/Group2/Group 3 ?

INVESTMENT BIFURCATION- Under Investment and Profit of Petrol Pump Business 2023

  1. Land Acquisition: Land may have ownership / Long Term Lease (19 year 11 months). = 500000 (Approx.)
  2. Application Process of Petrol Pump: It includes application fee, Bidding fee/Fixed fee, Security Deposits. i.e., 20,00000 /35,00000 (depend on the sites {CC site/DC site})
  3. Infrastructure: It includes canopy, driveway, sales room, toilet, generator room, retaining wall, compound wall, soil filling etc =40,000,00- 50,000,00
  4. Stock of Diesel & Petrol: 20 KL Diesel – 20 Kl Petrol = 40 Lakh
  5. License / NOC & Other Investment: 10 Lakh

Total Investment for petrol Pump dealership Business 2023= 1.2 Crore


What is the NOC / Clearance Required- Under Investment and Profit of Petrol Pump Business 2023

  1. District Magistrate ( जिला  मेजिस्ट्रेट  )
  2. S.D.M  ( तहसील )
  3. S.P  ( पुलिस विभाग )
  4. Electricity Department ( बिजली विभाग )
  5. Forest Depaprtment ( वन  विभाग )
  6. Fire Department ( अग्नि विभाग  )
  7. P.W.D / NHAI Department ( सड़क विभाग )
  8. Environment Department ( पर्यावरण विभाग )
  9. Petroleum & Explosive Department ( विस्फोटक विभाग )


LOAN FOR PETROL PUMP BUSINESS -Under Investment and Profit of Petrol Pump Business 2023

As we are talking about loan i want to clear you one thing without collateral Bank will not provide Loan for setup Petrol Pump Station. Firstly, I want to clear you that Loan is totally dependent on the types of sites. If you owned the Dealer owned Dealer Operated Sites, then you will get Loan from Bank Side. If you having CC, then completed denied from Bank Side.

Here two ways for loan: –

  1. After received LOI from Oil Marketing Company for proposed of petrol pump dealership in your Area. Then you can apply for Loan in the Bank for Term Lon + working Loan & Other facilities.
  2. If available land for petrol pump in the name of Applicant, then Applicant can apply loan against the Land available for setup petrol pump. i.e., here Loan available against the Land.

Above are the two ways by which you will be financial assist by all scheduled Bank.


PROFIT-Under Investment and Profit of Petrol Pump Business 2023

If you want to know about profit or revenue from petrol Pump Business then should to know about commission provided by OMC.

Petrol: Rs 2.23 per Liter

Diesel: Rs 1.87 per Liter

Petrol: Rs 2.00 per liter

Diesel: Rs 1.60 per Liter




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