How to Start a Profitable Petrol Pump Business in India

Written by Karan Sharma July 26, 2025

Lucrative Opportunity

Opening a petrol pump is a high-profit business, but requires significant investment and paperwork.

Online Application Process

Licenses are now applied online via oil company websites like Indian Oil, BPCL, or HPCL when they advertise new outlets.

Location Matters

Your chosen site must match the company’s approved list of vacant locations.

Document Checklist

 Submit land ownership/lease papers, identity proof, and location details during application.

Application Fees

Costs vary—₹100 (rural) to ₹1,000 (urban/highway) for initial forms, plus non-refundable fees.

Land Ownership Cost

If using your own land, fees range from ₹5 lakh (rural) to ₹15 lakh (urban/highway).

Company Land Bidding

Leasing oil company land starts at ₹10 lakh (rural) or ₹30 lakh (urban) via competitive bidding.

Company Land Bidding

Leasing oil company land starts at ₹10 lakh (rural) or ₹30 lakh (urban) via competitive bidding.

Total Investment

Setup costs can escalate to crores, covering infrastructure, safety compliance, and operational expenses.

Approval Steps

After application, expect inspections, safety clearances, and final licensing—process takes months.

High Returns

Despite high initial costs, petrol pumps guarantee steady income due to constant fuel demand.

Act Fast

Stay updated on oil companies’ advertisements to secure a license in prime locations.