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Sat, Jan 31 2026
Raju Karn
Opening a petrol pump in India is a dream business for many people because fuel demand never stops. Whether it is bikes, cars, buses, or trucks, petrol and diesel are used every day. That is why a petrol pump is often seen as a stable and long-term business.
However, starting a petrol pump is not like opening a normal shop. It involves government approvals, land requirements, safety rules, and coordination with oil companies like Indian Oil (IOC). Many people also get confused about the petrol pump license cost, eligibility, and application process. This blog explains everything in simple language so you can understand how the process actually works.
A petrol pump license is official permission to sell petrol and diesel to the public. This license is issued after approvals from oil companies and government departments such as the Petroleum and Explosives Safety Organisation (PESO), local authorities, and fire departments.
You cannot open a petrol pump on your own. You must get a dealership from a government oil company like:
Among these, Indian Oil petrol pump (IOC pump) dealerships are the most common across India.
Any Indian citizen can apply for a petrol pump dealership, but certain conditions must be met.
➔ Age between 21 and 60 years
➔ Indian citizenship
➔ Minimum educational qualification (varies by category)
➔ Clean financial and legal record
Oil companies may also ask for:
➔ Business experience
➔ Ability to manage operations
➔ Financial stability
Land is one of the most important factors.
‣ The land must be owned or leased by the applicant
‣ Location should be on a high-traffic road or highway
Minimum land size depends on:
‣ Urban or rural area
‣ Type of road (highway, city road, village road)
For an Indian Oil bunk, the land must meet IOC’s specific size and frontage requirements.
Here is the process explained in a simple and practical way:
Oil companies like Indian Oil release dealership advertisements on their official website and newspapers.
You apply online with personal details, land details, and category selection.
Selection is done through a draw or interview, depending on the category.
The oil company checks whether your land is suitable and legally clear.
Approvals are required from:
Once approvals are granted, the petrol pump infrastructure is built as per company standards.
After inspection, the petrol pump license is issued and fuel supply starts.
Many people search for petrol pump license price, but there is no single fixed amount.
This includes:
– Land development
– Construction
– Safety equipment
– Tanks and dispensing units
– Initial operating expenses
The actual petrol pump license cost depends on location, land type, and oil company guidelines.
An Indian Oil petrol pump is preferred because:
✓ Strong brand trust
✓ Wide customer base
✓ Support in training and operations
✓ Transparent dealership system
An Indian Oil bunk also follows strict safety and quality standards, which helps build customer confidence.
To open a petrol pump, you need approvals such as:
➤ Oil company dealership agreement
➤ PESO license
➤ Fire safety NOC
➤ Local authority approval
➤ Explosive storage permission
All safety norms must be followed strictly.
Petrol pump profits depend on:
• Daily fuel sales
• Location
• Operating efficiency
Margins are fixed by oil companies, but higher volume sales lead to better overall earnings. Additional income can come from:
• Convenience stores
• Air filling
• Vehicle services
⚠ Applying without proper land documents
⚠ Choosing a low-traffic location
⚠ Ignoring safety rules
⚠ Underestimating investment cost
Careful planning avoids delays and rejection.
Opening a petrol pump involves multiple approvals, land checks, and coordination with oil companies like Indian Oil. Missing even one requirement can delay the entire process.
PSR Compliance helps you understand eligibility, documentation, approvals, and the overall application flow so you can move forward with clarity and confidence. Our goal is to simplify the process and help you avoid common mistakes.
📞 Call PSR Compliance at 7065883416 for clear guidance on opening a petrol pump in India.
Indian residents aged 21–55 years (up to 58 in some cases) with a clean criminal record are eligible.
Applicants need 10th/12th pass for rural areas and graduation or equivalent qualification for urban locations.
Urban locations require 800–1200 sq. meters, while rural or highway locations need 1800–2000 sq. meters.
Yes, the applicant must own the land or hold a long-term lease of about 29 years and 11 months.
The total investment typically ranges between ₹2.5 crore and ₹3.5 crore, depending on the location.
Applicants need around ₹25 lakh for regular pumps and ₹12 lakh for rural pumps.
Applications can be submitted online at petrolpumpdealerchayan.in when oil companies release advertisements.
Dealers are selected through a draw of lots or bidding process if multiple applications are received.
Dealers earn approximately ₹3.5–₹4 per litre on petrol and ₹2.4–₹3 per litre on diesel.
The dealership agreement is generally valid for 29–30 years.