The Oil & Gas industry is integral to the growth of almost every economy, and is India’s 8th-largest industry. India’s petroleum market is the most significant contributor to petroleum among non-OECD countries. Our consumption of oil-oriented products rose 3.7% in 2021, to 201.26 MMT. In 2021, India was the 3rd-largest consumer of oil.
According to India Energy Outlook 2021, India’s primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as the GDP is expected to reach USD 8.6 Tn by 2040! Some of India’s major oil and gas companies are Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation (ONGC), Bharat Petroleum, Gas Authority of India Limited (GAIL), Reliance Petroleum, and Hindustan Petroleum.
At the same time, CNG demand is also increasing as people move away from petrol/diesel-powered vehicles. According to a Business Standard report, India's gas market will triple by 2030. This is partly due to skyrocketing petrol and diesel prices, and people moving to cheaper alternatives. Also, as people shift towards cleaner options due to environmental changes, the surge in demand for CNG is inevitable. An increasing number of cab and auto drivers too are shifting to CNG, aiding in further growth of this segment.
Petrol and gas, however, remain modern-day necessities. Whenever you visit a pump, you’ll hardly see it without a queue. Several industries like chemicals, fertilisers and cosmetics also use petrol as a raw material.
And perhaps most evidently, increasing vehicle sales indicate that this sector will continue to remain lucrative. All statistics look pretty promising, so you should consider going ahead with your petrol pump business idea.
How? It’s simple, just read on!
Before learning how much a petrol pump business investment works out to or how to get a petrol pump business loan, it’s important to check whether you can even start one. Yes, not everyone is eligible! These are the criteria:
If you wish to start a petrol pump business, you have 2 choices:
While checking a website or ad, you’ll be able to identify the location and number of petrol pumps they want to be set up. If you find something viable for you, you may apply via the respective website. In case of several applications, the company may allot the pump based on lottery, bidding or draw of lots.
Once you are allotted a pump, you must apply for a petrol pump business licence:
Every company has their own parameters when it comes to choosing land for a petrol pump. While going through the advertisement, check where the pump is to be opened with your sanctioned land. Only apply if it falls in the same area.
Outlets near highways are called regular retail outlets, while those far away from highways are called real rural outlets. These are the requirements for the land:
While applying for a petrol pump business, you must have the following:
The following make up the investment requirement for a petrol pump:
By now, it must be clear that petrol pumps require a hefty investment. If you do not have that kind of capital, we suggest going for a petrol pump business loan. Numerous banks and NBFCs provide loans. Banks offer several options in long-term loans, flexi loans, personal loans and gold loans. Choose wisely, as the choice of loan will impact your future livelihood.
You can also go in for a petrol pump business loan in gold - we recommend this as many Indian households have gold lying idle in the form of jewellery. Almost never used, this gold can easily be leveraged to get an instant loan. One of the best options for this is indiagold, which provides easy, hassle-free gold loans at competitive interest rates.
Gold loans involve minimal documentation and have no CIBIL score requirement. The process is quick & hassle-free. Moreover, indiagold fully insures your gold and stores it safely in assigned bank lockers!
You must plan your business with full knowledge of legal and financial aspects. You can later also collaborate with private automobile operators and provide car cleaning services at your pump to scale up your business. You can also tie up with convenience store chains such as 24Seven to further popularise your business with residents of nearby localities. Such options have often proved to be profitable for petrol pump business owners.
Lastly, if you’re worried about a loan, relax and go for a gold loan from indiagold. Affordable, risk-free and at your doorstep - it’s fast, and will ensure you can get started with your business without delay.
And now, you’re ready to start your very own petrol pump business. All the best!