In India, the petroleum industry is one of the largest industries in the country. With an increase in population and demand for transport vehicles, the number of people working in the oil industry is also growing rapidly.
Due to the high-profit margins involved, the petroleum industry is considered to be one of the best investments in India. However, before investing in any industry, it is essential to understand the various aspects of the industry.
One such aspect is the process of setting up a new petroleum station. To begin with, it requires considerable capital. Apart from this, it involves a lot of paperwork and legal formalities. Hence, it is advisable to seek expert advice before getting into the industry.
To begin with, if you’re thinking about starting up a petrol station, here’s how you draw up a petrol station plan.
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Before anyone may open a gas station in India, the country’s Ministry of Petroleum has established certain conditions that need to be fulfilled.
- The petrol station‘s owners should be Indian citizens. If the applicant is not an NRI, they must have spent at least 183 days in India.
- You need to be at least 21 years of age and not older than 55.
- You need to provide proof of your identity before we can issue you an ID card.
- For people living in rural locations, the minimum educational requirement is a 10+2 (or equivalent) diploma. People living in urban areas need to have at least a bachelor’s level qualification. An 8th or 9th class pass is needed for CC1 applications and an 11th class pass is needed to apply for CC2.
- Applicants who fit into the category of freedom fighters may be exempted from the requirements.
- To get a dealership in rural locations, you need to spend at least Rs 15 lakhs.
- For obtaining a dealer license in urban regions, a minimal investment of two crores is needed.
- Blacklisted locations should not be selected when selecting a company location.
If you’re thinking about starting a car wash business, this is an important part. You should choose where you’ll set up your car washes based on studying the automobile dealerships. Before beginning your application, ensure that the area you’ve picked is authorized for auto sales. Additionally, you must meet the below criteria so you can earn money from your car wash every day.
- If you don’t own or rent the property where you want to drill an exploratory well, then you need to get a loan from an oil company.
- To verify ownership of the land, you must ensure that all of its legal documents are up-to-date.
- Depending on the location, the required space for a restaurant should range from 800 to 2,000 square meters.
- The site should be developed and leveled, as well as easy to access from the road.
This section can help explain the benefits of owning a service center. The applicant needs to have a sum of Rs. 15–25 million in capital to start an auto repair shop in rural India. In comparison, the cost of opening a car repair shop in a big city ranges between Rs. 25 and Rs. 40 million. A person can also buy a vehicle using the following methods:
- Rural oil retailers (ROs) are worth Rs 12 lakh per year, whereas urban oil retailers (UOs) are worth Rs 25 lakh per year. However, the initial cost of setting up an oil retailer varies from one oil retailer to another.
- You may use any mode that accepts Bitcoin payments.
- Share trading is an investment option for investors who want to invest in shares of listed companies.
- Mutual funds
- Money deposited into an interest-bearing checking account
- Deposits in the bank
- They won’t take credit cards, cash, or bank accounts.
Fees for Applications
An app costing Rs. 1000 is needed for conventional retail stores, and Rs. 100 is required for rural retail outlets. The fees are halved for those from the Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Classes (OBC) categories.
If you own land in the same location as where you want to set up a fuel station, then you need to spend at least Rs 15 lakhs (Rs 1,500,000) for a conventional outlet and Rs 5 lakhs (Rs 50,000) for a rural outlet; if you don’t own any land, you need to spend Rs 10 lakhs (Rs 100,000) for a retail site and Rs 30 lakhs (Rs 3 million) for a dealer site; and if you don’t own land but want to operate from an existing building, you need to spend at most Rs 25 lakhs (Rs 2,50,000).
For the ‘A’/’D’ retail outlet”s site, high-speed diesel cost Rs. 16/KM, while petrol costs Rs. 18/ KM.
For A/C retail outlets, high-speed diesel costs Rs.41 per kilo liter (km), while petrol costs Rs.48 per kl.
There is a huge benefit in the operation of a gas station. One can calculate how much money one makes by knowing how the process works. Next, one needs to get an operating license. In the news or on their website, OMCs post ads for gas stations to be put into various places. Those who are interested must meet these requirements:
- Complete an application form for a plot of agricultural lands for Rs 100 or Rs 1,000 online, fill out the details accurately, and submit the application to the government agency.
- You need to obtain a GSTIN before opening an Australian bank current account.
When there are too many applications from one particular region or city, OMCs may use a lottery system, lotteries, or a bidding process.
After obtaining the necessary licenses, the next step will be to obtain the following certificates and licenses before constructing the petrol pumps:
- A certified copy of the location
- Licensing authority’s NOC
- They’ve allowed us to use their facilities for our event.
A certificate of approval from relevant authorities is necessary because it’s an important aspect of petrol station business plans.
A petrol station’s success depends on its geographical position. Ideally, a petrol station should be located near major roads, residential neighborhoods, popular markets, and high-trafficked road routes.
After receiving the license, an applicant must then construct a petrol station and oil bunkering facilities according to the OMC’s requirements and guidelines.
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