Petrol Pump Project Report



You can check out the Petrol Pump Project Report for immediate download. There is a nominal fee for downloading the project report of the petrol pump. The Petrol Pump business is a highly profitable startup in India because India is a highly populated country that has crores of people residing here. The people of India have a high demand for vehicles to travel on their own for ease and thus is a high demand for petroleum or diesel in India. India being the third-largest importer of oil in the world uses 1.6 barrels of diesel per day and 4 million barrels of petrol daily. You can now imagine how massive is the demand for petrol and diesel in the country and so is the profitability of this venture. 

Petrol Bunk project report will help you prepare a project report as per your objectives. This project report is a sample. This report will also help you to study the project and collect information about the same. These documents are available for download in PDF format. You can prepare a report in Word or Excel at your convenience.

Petrol Pump Project Report 

While passing through a petrol pump seeing the long queues or while filling up our cars and tanks for Rs 2000+, all of us wonder at a moment about people who own a petrol pump! “How much they are earning,” “they must be super-rich,” and “what if, I’ll start my petrol pump,” are some of the common thoughts that we have gone through! No matter what the century is, petrol pump as a retail business is always considered one of the most profitable businesses of all and that, too, nationally and worldwide.

On one hand, the rapid growth of the transportation and logistics sector whereas on the other, the daily commutation of a huge population has made it an evergreen business. As transport has become a means of comfort and convenience for commuting to the office, home, parties, travel, etc. seeks more fuel to the vehicles to pursue daily activities. Henceforth, getting started with your own petrol pump business is a strategic move!

The process is divided into some paperwork and legal obligations; it is still the talk of the market and one of the most profitable businesses of all. The ROI period is also very less, henceforth, opening the doors of high revenue within a lesser period. Apart from this, the Oil Marketing Companies or OMCs are targeting to implement more feasible opportunities so that the growth of petrol pump businesses in India can be encouraged in the upcoming years, that is, 2021 and 2022.

Petrol Pumps In India

The common point of contact among the oil industry and consumers is termes a petrol pump in simple terms. Petrol pumps are also known to be ail Outlets (ROs) in Oil industry parlance. Moreover, the petrol pump project report can give you detailed knowledge on the working of petrol pumps in India. 

  • As per the current government policy, both private sector oil companies and public sector oil companies dealing with the distribution and storage of petroleum products within the guidelines can open petrol pumps.
  • Presently, HPCL, NRL, ONGC, Essar, RIL, Shell, IOC, BPC, and MRPL are some of the oil companies associated with the automotive fuels business.

Which products are offered at Petrol Pumps In India?

Technically, the petrol is the Motor Spirit (MS). Mainly, passenger vehicles such as two, three, and four-wheelers used it. As per the HPCL’s market, there are two types of petrol available across the country:

  • Normal petrol: Generally used as a fuel for spark-ignition internal combustion engines like bicycles, auto-rickshaws, and cars.
  • Branded petrol: New generation vehicles preferred this kind of petrol. Its cost is slightly more than the normal one. Additives for optimizing vehicle performance have given the name “Power” to it. Hence, it is sold under this name.
  • Ethanol blended petrol: the marketing of ethanol-blended petrol has been notified by the Ministry of Petroleum and Natural Gas.

High-Speed Diesel (HSD) at Petrol Pumps In India

Just like petrol, HPCL markets two types of diesel throughout the country.

  • Normal Diesel: Normal diesel is used in heavy commercial vehicles like tractors, pump sets, buses, motor cars, and various others.
  • Branded diesel: New generation vehicles preferred this type of diesel. It is sold under the name of Turbojet thatwhichsists of multi-functional additives that boost the new generation vehicles’ performance.

Lubricants From Petrol Pumps

Lubricants are an essential product for the engine’s health. It’s a viscous product which is being used in an engine for its smooth functioning. However, different engines, gearboxes, and other components need different grades of lubricants.

Compressed Natural Gas (CNG) From Petrol Bunks In India

It is an eco-friendly fuel, available in major cities where it has been introduced based on the grid and gas availability.

  • CNG is available at selected company outlets in a few cities. There are also some dedicated and stand-alone CNG pumps in several cities.
  • It is used in vehicles fitted with an exclusive special kit for the purpose. The vehicle needs to be changed mechanically for its usage.

Auto LPG

Auto LPG meets BIS standard IS 14861, which has an octane number of a minimum of 88. It is also a clean and eco-friendly fuel.

As now you are familiar with the petrol pump and what it markets, let’s move to the business plan and its requirement!

What are the eligibility criteria to open a petrol pump in India?

There are specific criteria and guidelines set up by the Government of India that have to be fulfilled before starting the opening process of the petrol pump in India. Here are those:

  • The petrol pump owner or owners should be Indian citizens/citizens. In the case of an NRI candidate, she/he must have lived for 182 days or even more in India.
  • 21 years is set to be the minimum age, and 55 years is the maximum age for the candidate.
  • The birth certificate is mandatory.
  • For rural area individuals, the minimum educational qualification is 10+2 certification while the urban individuals require a university degree certification; recognized by UGC as the minimum educational qualification. Moreover, the candidates of the CC1 category require the 10th certificate, and for CC2 category candidates, 10+2 is mandatory.
  • Candidates who fall under the category of freedom fighters are exempted from any of these rules.
  • In rural areas, a minimum investment of Rs 15 Lacs is required to get a dealership.
  • In urban areas, a minimum investment of Rs 2 Crore is required to get a dealership.
  • Excluded or blacklisted zones must not be considered as a chosen business location.

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How much land is required for a petrol pump in India?

Following the same pattern that of mobile towers, the land for the petrol pump has to be picked based on analysis done by the petrol companies. The petrol companies issue advertisements for sanctioned locations and land so that you can make sure your selected location or land area comes under that particular category before applying further for the application. You also need to make sure that you meet the following land criteria:

  • In terms of land, you have two choices, either the land is owned by you or on lease for a particular time frame as agreed upon by the oil dealership.
  • You also need to make sure of the legality of the land by placing the legal documentation for the further verification process.
  • The land area depends upon the location and should range between 800 sq meters to 2000 square meters.
  • The land for the petrol pump dealership project level and develop and should have easy accessibility from the road.

What are the total Investment and fees to start a petrol pump in India?

If you have fitted into your mind to open a petrol pump, then get ready to make a good investment. To open this, you must have a better investment amount. In India, there are two types of charges for petrol pump opening:

  • For rural area ROs, Rs 12 lacs and urban area ROs Rs 25 lacs. However, the amount may differ as per the companies.
  • Your funds may be accepted in the following modes:
  1. Bonds
  2. Mutual funds
  3. Bank deposits
  4. National savings certificates
  5. Shares of listed companies in DEMAT form
  6. Saving accounts’ forms

However, the jewellery, cash, and current account balance would not be deemed an investment in this business.

How to get a license for a petrol pump in India?

The very next that comes in is that of obtaining a license for a petrol pump. To make this happen, OMCs or Oil marketing companies issue advertisements on media platforms such as on their official website or newspapers to set up petrol pumps in varied locations. You can get the license of a petrol pump in India by applying online for a petrol pump and getting permission from the required bodies. 

The interested candidates have to:

  • From rural areas (buy a form for Rs 100) and from urban areas (form for Rs 1000) and accurately fill the correct details such as name, mark sheet, ID, land details, and upload all the required documents on the selected company’s official website.
  • Once the license is given, the candidate will require a GSTIN number for paying GST, and he/she must open a current account in the name of the petrol pump.

How to obtain certificates for a petrol pump in India?

After sanctioning a license, the next step comes to obtain some certificates and permissions before building the infrastructure of the petrol pump.

Things included in the project report of the petrol pump.

  • Location certificate
  • Permission from the fire safety office and the municipal corporation
  • Also, NOC from the licensing and other concerned and dedicated authorities.

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Contents of Petrol Pump Project Report

1Project at a Glance
2Proposed Facilities Plan
3Introduction, Market Demand Potential
4Project Cost Estimate, Means of Financing
5Cost Sheet – Plant & Machinery, Land & Civil Work
6Cost Sheet – Utility, Computer, Furniture & Fixtures
7Human Resources
8Revenue Model
9Debt Service Coverage Ratio
10Working Capital
11Projected Profitability Statement
12Projected Balance Sheet
13Project Cash Flow Statement
14Statement of Depreciation
15Term Loan Repayment Schedule
16Expenses Details
17SWOT Analysis
18Ratio Analysis
SWOT Analysis for petrol pump Project Report
  • Strength: Ongoing traffic and increasing demand for common people is the foremost strength of the petrol pump business. Additional services such as car washing are the most appealing services that can be fruitful for your business. Convenience stores and small shops like gifts, etc., also act strategically to generate higher revenue. Economic self-sufficiency is recession-free due to the demand for fuel in the market.
  • Weakness: High competition in the area because of huge traffic. Once customer loyalty has vanished, it cannot be regained. Hence, the cost of maintenance is high as that of equipment deals with highly flammable substances. The initial installation cost of a hybrid plug is high and needs more capital. May there would be environmental concerns around the city.
  • Opportunities: There are many opportunities in the upcoming era, such as making the pump eco-friendly in the long run by making it electric-vehicles friendly and installing bio-thermal plants, which is the need of the hour.
  • Threats: As it has highly flammable substances, it can catch fire easily. 

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Conclusion of petrol bunk project report

Overall, analyzing the whole business model shows that opening a petrol pump is advantageous but requires a lot of investment and working capital to make it steady. If you have a sufficient amount of investment and working capital and a piece of land where the petrol pump can run well, you can go with the petrol pump business. It will fetch you higher returns in a lesser time.

Frequently asked questions for petrol pump PROJECT REPORT
How can I apply for a petrol pump dealership in India?

Generally, as told earlier, OMCs issue advertisements on their official websites and newspapers to set up petrol pumps at multiple locations, so companies like IOC, Essar group, Hindustan Petroleum, etc., have an application form on their websites from where you can deal with retail franchise outlets. However, in the case of a large number of applications, there is a lottery system to select applicants. The selected candidates submit documents to the companies in a certain time frame. Besides, the steps involved are • 1. Open the site petrolpumpdealerchayan 2. On the homepage, click on register now 3. fill the entire form and continue with the further process. 4. Login with your login credentials, and in the dashboard, click on available advertisements. 5. Now choose the company and your state of residence. 6. Now you can see the place where the company want to open the petrol pump. 7. Select the nearby area and click on apply now. 8. Fill out the form in 40 minutes as this is the time limit. 9. Select partnership or individual and pay the fees of Rs 1000. 10. Now fill in the required details, including photographs, signature, and others.

What is the profit margin of petrol pumps?

The margin of the dealer for diesel and petrol approximately Rs.2 Per litre in diesel and Rs.3 Per litre in petrol. However, the low volume dealers also get an increase in commission with percentage and paisa per litre.

I s it profitable to open the Essar Petrol pump?

However, the profit margin remains the same for almost all OMCs, but the Essar oil dealership model is simple and lucrative that ensures steady operating profits and higher returns on your investments. The ROI based on performance is 5% per annum on the capital expenditure.

W hich petrol pump is the best?

It is difficult to say which one is the best. Though you can choose among these top 6 companies: • Hindustan petroleum • Indian oil • Essar oil • Reliance petroleum • Rosneft • Shell

What is the procedure to transfer running petrol pump ownership?

Though you cannot transfer your petrol pump licence to any other person directly. You have to apply for reconstitution at your territory/regional office in a prescribed form coupled with all required documents.

In which format is the project report of petrol pumps available?

Petrol Pump Project Report is available in PDF format. You have to prepare the project report yourself in Word or Excel format when required.

How To Start A Petrol Pump Business?

To start a petrol pump business in India you need to do deep research on this business. Exploring the petrol pump project report is a great idea. You need to stay eligible to get a petrol pump license in India that says your age can be between 21 to 55 years and you need to be an India. If you are an NRI then you must stay here for the last 182 days and then apply for a petrol pump. You must have your land or get it on lease. The documents and license are another stress. You must obtain a license to run a petrol pump in India along with some mandatory certificate from a few government bodies like the fire department, forest department etc.

How to apply for petrol pump license?

Usually the oil marketing companies advertise about the franchise opportunity in the newspapers or official websites. It gives you a chance to buy the petrol franchise in the location offered by the company. You have to submit your application for a petrol pump franchise online. The oil company receives thousands of applications and among them selects very few. From the selected applications, only the ones who attain the license and fulfil the eligibility conditions get the franchise of petrol pump in India. The selected candidate has to present all the important documents to the oil company. Once you get the license, a GST number is mandatory so that you can start the transactions of your petrol pump business in a current account that you have just opened. Here is the procedure to apply for a petrol pump online. Log onto the official petrol pump website and read important instructions. You will get an online form that you have to fill out. A fee is deposited for the same. It varies for general category candidates and reserved ones. Among the area and location categories fill your area. Once you share all the information that is asked, register and then create your account. You get a login id and password for future use. Finally, you need to submit and make payment.

How much investment do I need to start a petrol pump in India?

The investment that you need to start a petrol pump in India includes the major share in the land. If you have your land then that amount can be saved. If you have to buy a new land then you have to spend almost a crore on buying the land of 800 to 2000 square meters. You can get the land on lease and start your business. You just need to pay the rent. In advance you will have to pay some security fee also that will be more. Apart from the land, you must invest between Rs 12 to 25 lakh. The investment amount depends on the location and area of the petrol pump. The funds that can help you are: Saving account funds Postal scheme or bank register company deposits Bonds and Mutual Funds Certificate of deposits Demat form of shares of listed companies. The items like cash, jewellery and assets are not considered for investment of petrol pump.

How can I get a shell petrol pump franchise in India?

You can get a shell petrol pump franchise in India if you fulfil the eligibility criteria. It says that you must be at least a graduate having 5 years of experience in the hospitality, service or retail sector. The investment can be around 20 lakh. You should be capable of manpower management and the financial credibility must be strong enough. Accounts and financial statements should be easy for you to manage.

What are the documents needed to start shell petrol pump in India?

Petrol Bunk Project Report All the documents related to land. A property map is compulsory. The place petrol pump should be clean. The agragriculturalnd must be first converted to non-agricultural land. If the owner of the land is not you, a NOC is needed from the owner. An electricity facility is a must. If the land falls under the green belt, you cannot start your petrol pump there. You should get the lease agreement registered. If your family member is the owner of the land, then you can start your petrol pump there in India but NOC is demanded and affidavit too.

How to apply for shell petrol pump?

You can apply for shell petrol pump online. You can even check out the advertisements on the official websites and newspapers for franchise opportunities for shell petrol pumps in India. When you apply for a petrol pump online, you should also work to acquire the license for the petrol pump. If the applications are in thousands a lottery method is chosen to select only a few. The selected ones need to present the financial credibility, and documents and fulfil other formalities as required by the oil marketing company and the ones who satisfy the company get the petrol pump franchise. It requires the investment of crores including the investment of new land. You have to get a GST number also when you get the license of the petrol pump and open a current account as well to initiate the transactions of your petrol pump. To apply online for a shell petrol pump fill in the application form on the official website of shell petrol pump and submit the form there.

How much land is required for a petrol pump in India?

You need to have your land when you plan to start a petrol pump in India. The land requirement is 800 to 2000 square meters If you have the land it’s good. If you don’t have you can get it on lease. It is preferable to get the land near highways and in the area where there is no other petrol pump at least in a distance of kilometres.

How much money can a petrol pump owner make in India?

You will be happy to know that petrol pump is one of the highly profitable businesses in India. If you are eager to know about the petrol pump income in the country then let me tell you, a petrol pump owner earns a good income after selling the petrol and diesel for a month or yearly. If you are running a petrol pump in India then you can earn around 3.5 lakhs per month. You can also make a commission of Rs 3 lakh for a month and your income can be 5.7 lakh per month. You need to pay a lot of expenses also because maintaining and running a petrol pump is not easy. Thus when you subtract your expenses from your income you can get to know your profits.

How much is the Petrol Pump Dealer’s Commission in India?

The petrol pump dealer in India gets a commission of Rs 2.58 per litre. The commission on one litre of diesel is Rs 2.60. As the petrol pump owner, you may also receive Rs 202.38 per KL and 0.89% extra on the retail petrol price. This commission depends on the petrol price. The commission for diesel is Rs 1502.13 and 0.27% extra on retail price.

What is the Profit Margin of Petrol Pump Owner?

The profit margin of the petrol pump owner is generally high. It is correct that the owners earn good but they have high expenses to bear along with high investment. Once the expenses are subtracted from the income, the profit margin left is less. In a petrol pump, the profit margin is 1.8% on the whole. This means for selling 1 litre of petrol you get Rs 1.8 as profit. If you sell 4400-litre of petrol per day then you can make a revenue of Rs 10 lakh. Out of this, you spend Rs 6 lakh as expenses for giving wages, interest, electricity and cost of production. What remains with you is pre-tax profit. Later you calculate your profit after paying tax.

How much money do I need to set up a petrol pump?

You need to make a good investment to earn high profits from the petrol pump in India. If there is a general store or a cafe in the ambience of your petrol pump you can earn a lot of money from there also. It is not an easy job to set up the petrol pump as a lot of investment and formalities are involved. It requires a lot of money to set it like the minimum funds that you need to invest for a rural area petrol pump start from 12 lakh and for the urban area it begins from 25 lakh.

Which petrol brand is best in India?

When I asked my friends about which petrol pump they like the most, the answer came out we have never thought of. People are usually not brand conscious about petrol pumps. What they say is whichever petrol pump comes in their way they get the fuel tank filled. Among a few leading petrol brands like Indian oil, Bharat petroleum, reliance petroleum ltd or ESSAR are almost alike. The purpose of a petrol pump is to offer you fuel that you have to use to drive your vehicles. It doesn’t matter for best petrol brand.

Why is petrol pump called petrol bunk?

A petrol pump being a station to provide you fuel service so that your vehicles can run well. It is famous as a gas garage, petrol station or Gas Station. People in sthe out of India also call it Petrol bunk but there is no typical meaning of this word. Well, a bunk is a cabin or a ship bed. Now since the petrol is also stored in bunker shaped container so people might be calling it as petrol bunk in place of the petrol pump.

How much is the total cost to put up a petrol pump in India?

The minimum requirement of funds for a petrol pump in India is between Rs 12 lakh for rural to Rs 25 lakh for an urban area. You can use the funds that include deposits from the bank, bonds, savings accounts, shares in listed companies, postal schemes, mutual funds or national saving certificates. If the petrol pump site is yours, or you get it on a lease, then you have to pay a non-refundable fee of around Rs 5 lakh. It can be different for different locations. Amount of Rs 15 lakh is a non-refundable fee that you have to pay as security for lease.

Why should I invest in reliance petrol pump dealership in India?

As we all know that reliance is a popular name in India, so people are brand loyal for reliance products. Following are the features of reliance industries that attract me to reliance petrol pumps in India. RIL is one of the top 500 firms in the country.Surely,t the companies are working with the most advanced technology available in India and offer the best infrastructure for everything.. . is the biggest and most reputed player in the gas and oil industry. The staff hired by reliance is skilled and experienced.

How much money do I need to invest for reliance petrol pump?

You have to prepare yourself to invest in lakhs and crores if you want to be the owner of a reliance petrol pump in India. You have to arrange for the required land for this business and buy it for around 2 crores. The investment for reliance petrol pump is around 50 lakh other than land. It includes the amount that you have to pay as security for the land on lease.


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