Investment For Petrol Pump License Cost and Eligibility to Open a Petrol Pump in 2023

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To ensure transparency in the allocation of petrol pump licenses and franchises by Oil Marketing Companies, a new selection process has been developed. This process involves verifying the applicant’s compliance with pre-established eligibility criteria.

Applicants those meet the eligibility criteria are then selected for the next round, either through a lottery or a bidding process.

Therefore, meeting the eligibility criteria is now a crucial factor in determining who will be awarded the petrol pump dealership. In this article, we will discuss the eligibility criteria for individuals seeking a petrol pump license.

Eligibility Criteria for Linces

  1. Citizenship: The applicant must be an Indian citizen.
  2. Residency: The applicant must have spent at least 182 days in India during the previous financial year and must be a resident of India.
  3. Age: The applicant must be between 21 and 58 years of age.
  4. Exclusions: Freedom fighters are not eligible to apply for a petrol pump license.
  5. Identification: A document proving the applicant’s identification is required.
  6. Age verification: The applicant’s age must be verified by submitting a copy of their 10th Matric Certificate, Secondary School-Leaving Certificate, Passport, Birth Certificate, Affidavit for Age Proof, or Election Commission Identification Card.
Petrol Pump License Cost

Apply for a Dealership of Petrol Pump

  1. Go to the website Petrol Pump Dealer Chayan and log in.
  2. Click on the “Register now” button and create an account by providing all the necessary information.
  3. Log in to the account using the ID and password and click on the available advertisement.
  4. Select the desired oil marketing company and the state where you want to operate.
  5. All the information related to the company and the selective area will be displayed on the website.
  6. Select your preferred area and click on “Apply now.“
  7. Fill in all the necessary information within the given time limit.
  8. Choose either a partnership firm or individual option from the dropdown box and pay the required fee.
  9. Enter your personal details, including a photo and signature.
  10. Click on “Submit” and pay the required fee.
Investment For Petrol Pump

Petrol Pump License Cost

The license fee for the petrol pump currently stands at Rs. 18/KL for Motor Spirit and INR 16/KL for High-Speed Diesel for dealer-owned “B”/”DC” site retail outlets. The fee for corporation-owned “A”/”CC” site retail outlets is Rs. 48/KL for Motor Spirit and Rs. 41/KL for High-Speed Diesel.

Application Fees for Petrol Pump

Application Fees for Petrol Pump The application fee for rural retail outlets is Rs. 100/-, and for regular retail outlets, it is Rs. 1000/-. SC/ST candidates can get a 50% concession on the application fee. The fee must be paid in the form of a DD and is non-refundable. Each applicant can only apply for one location.

  • For Dealer-Owned/Company Leased Sites – A non-refundable fixed fee of INR 5 lakhs for rural retail outlets and INR 15 lakhs for regular retail outlets must be paid.
  • For Corporation Owned Sites – A non-refundable bidding amount of INR 10 lakhs for rural retail outlets and INR 30 lakhs for regular retail outlets must be paid.

Application Form URL

CompanyApplication Form URL
IOChttp://iocl.com/Talktous/Guidelines.aspx
Essarhttp://www.essar.com/section_level3.aspx?cont_id=tyN/VXziEDc=
Hindustan Petroleumhttp://www.hindustanpetroleum.com/retailpetrolpumpdealership
Bharat Petroleumhttp://www.bharatpetroleum.in/dealer/dealerSection.asp
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Land Requirement for Dealership of Petrol Pump

  1. The land should be located on a National Highway.
  2. The applicant must have a suitable piece of land in the advertised location/area either by way of ownership or a long-term lease.
  3. Alternatively, the applicant can have a firm offer for a suitable piece of land for purchase or a long-term lease.

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Min Fund Requirement for Dealership

  1. Rural retail outlets: The minimum fund requirement for rural retail outlets is 12 lakhs.
  2. Regular retail outlets: The minimum fund requirement for regular retail outlets is 25 lakhs.
  3. Available forms: The required fund can be available in the following forms:
  • Savings accounts, deposits with banks/registered companies/postal schemes
  • National Savings Certificate
  • Bonds
  • Shares of listed companies in the Demat account
  • Mutual Funds
  1. Only 60% of the value of shares, mutual funds, and bonds will be considered for meeting the eligibility criteria.

Educational Requirement for Dealership of Petrol Pump

  1. All applicants must have basic education.
  2. Rural petrol pump applicants who belong to SC/ST or OBC category must have passed a minimum of 10th standard.
  3. All other applicants require a minimum of 10+2 level of examination.
  4. Open-category applicants in rural areas must have passed a minimum of 10+2 level of examination.
  5. For open-category applicants in non-rural areas, an educational qualification from any university under an Act of the Central or State Legislature in India or any other educational institution under an Act of Parliament to be deemed a university is required.

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