How to Open Petrol Bunk in India: Eligibility, Requirements, and Application Process.


Operating a petrol pump in India has emerged as a lucrative business opportunity. However, many aspiring entrepreneurs lack accurate information about the process involved in opening a petrol pump. In this blog post, we will provide you with a comprehensive guide on how to open a petrol pump in India. We will cover the eligibility criteria, fund requirements, land specifications, application charges, license fees, and the step-by-step application process. By the end of this article, you will have a clear understanding of the entire process to become a petrol pump dealer in India.

Eligibility Criteria:

To be eligible to open a petrol pump in India, you need to meet certain criteria. These include:

1. Applicant must be an Indian citizen.

2. For NRIs, they must have resided in India for at least 180 days before applying for a petrol pump dealership.

3. The minimum age requirement is 21 years, and the maximum age limit is 55 years.

4. For setting up a petrol pump in a rural area, the applicant must provide a valid 10th-grade mark sheet as proof of age.

5. SC/ST/OBC applicants must have passed the 10th grade, while the general category must have passed the 12th grade.

6. To set up a petrol pump in an urban area, the applicant must hold a graduation degree, or possess qualifications such as Chartered Accountancy, Company Secretaryship, Cost Accountancy, or a Diploma in Engineering.

7. For C1 and C2 category locations, the minimum qualification required is 10th grade +2.

Fund Requirement:

The minimum funds required to set up an oil firm vary depending on the dealership type. For rural dealerships, a minimum amount of Rs. 12,00,000 is needed, while standard dealerships require a minimum of Rs. 25,00,000. These funds can be in the form of savings accounts, bank deposits, registered companies, postal schemes, bonds, listed company securities, mutual funds, national savings certificates, etc. However, eligibility criteria are considered only for 60% of the value of shares, mutual funds, and bonds.

Land Requirement:

Once you have cleared the eligibility criteria, the next crucial step is to fulfill the land requirement for a petrol pump dealership. If you do not own land, you can also opt for a lease agreement. However, you must obtain a No Objection Certificate (NOC) from the landowner. The land requirements are as follows:

1. Rural Area: The land must be situated in rural areas but not on national highways or state highways.

2. Regular Area: The land must be located on national highways, state highways, urban, or semi-urban areas.

If the land is approved, you are required to provide a retaining wall and compound wall with a minimum height of 1.5 meters, designed as per the site conditions.

Application Charges:

To apply for a petrol pump dealership, an application fee is applicable. For regular retail outlets, the fee is Rs. 1000/-, while for rural retail outlets, it is Rs. 100/-. SC/ST category applicants are eligible for a 50% waiver on the application fee. The application fees must be paid through a Demand Draft (DD) in favor of the specific Oil Company.

License Fee:

The license fee for a petrol pump dealer varies depending on the type of outlet. For dealer-owned "B"/"DC" site retail outlets, the fee is Rs. 18/KL for Motor Spirit (MS) and Rs. 16/KL for High-Speed Diesel (HSD). For a company-owned "A"/"CC" site retail outlet, the fee is Rs. 48/KL for Motor Speed and Rs. 41/KL for High-Speed Diesel.

Application Process:

There are two ways to apply for a petrol pump dealership in India. The first method is through the Oil Marketing Companies (OMCs) advertisement in newspapers or on their websites. Interested applicants can fill out the application forms available on the official websites of oil firms like Essar Group, IOC, Hindustan Petroleum, etc. If a large number of applications are received, a lottery system or auction process is initiated to select the applicant.

Alternatively, applicants can apply online by following these steps:

1. Visit the website petrolpumpdealerchayan.

2. Click on "Register Now" on the homepage and fill out the form to create an account.

3. Login with your ID and password and click on "Available Advertisement" on the dashboard.

4. Select your desired oil company and resident state.

5. Choose the location where the company wants to open a petrol pump in your selected state.

6. Select your nearby area and click on "Apply Now."

7. Fill out the form within the given time limit of 40 minutes.

8. Choose "Individual" or "Partnership" from the drop-down box and pay a fee of Rs. 10,000.

9. Provide personal and mandated details, upload your photo and signature, and click on "Submit."

10. Proceed to the payment gateway to pay the fee and complete the process.


Opening a petrol pump in India requires meeting certain eligibility criteria, fulfilling land requirements, and completing the application process. By following the steps outlined in this guide, you can navigate the process successfully. Ensure that you gather all the necessary documents and funds before applying for a petrol pump dealership. With the right knowledge and preparation, you can embark on a rewarding journey as a petrol pump dealer in India.


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