Petrol pump business one of the best ventures that ensure the entrepreneur to earn a profitable results in just over a shorter time span. Fuel sector of every nation serves as core industries that add more in the annual revenue of the nation. But if you are looking for a petrol pump dealership, it is really not an easy process that everyone can easily make through. You in fact have to follow various guidelines and also go through different legal formalities as well to achieve the dealership of a petrol pump. We are here going to meet you with the complete guideline to get a petrol pump dealership.
Eligibility criteria for Petrol Pump License
In order to create a model of transparency among all those who are looking forward to get the dealership, the concerning authorities have listed up the lists of rules and regulations that they surely needed to follow. The new dealer selection procedure is being formulated by oil marketing companies where they are first being checked against the pre-established eligibility criteria. The selected candidates are then taken forward to the next round where they have to go through the bidding processes. The applying candidate should need to go through the eligibility criteria strictly.
Basic Eligibility Criteria
If you are willing to obtain the license of a petrol pump, you should need to pass the basic eligibility criteria of it.
- You should need to be an Indian Citizen and a resident of India as per the Income Tax Rules.
- Your age should not be less or more than 21 to 55 years (except freedom fighters).
If you are willing a dealership of petrol pump in rural areas, you should needed to be minimum of 10+2 by a recognized board or university and if you are willing to regular retail outlets, you should needed to be minimum a graduate or Charted Accountant or Company Secretary or even a Diploma in Engineering can also appear for the same as well. There are not such rules and regulation as per age factors for the Freedom fighters.
The person who is willing to open up a petrol pump should be capable of investing a minimum of Rs. 12 Lakhs for opening petrol pump in rural areas whereas, a sum of minimum Rs.25 Lakhs is required for starting up a petrol pump in the regular retail outlets. You can submit the funds in different formats such as:
- Funds in saving accounts, deposits with banks or registered companies or postal schemes
- National saving certificates
- Shares of listed companies in Demat format
- Mutual Funds
You are not supposed to pay the related funds in form of cash, jewelry or any other liquid form. Also if you are looking for depositing the amount present in your current account, forget about that also. Only about 60% of the value of shares, mutual funds and other bonds is being considered as the basic eligibility criteria in terms of funds. Moreover, the value of assets you are going to be deposit here as investment term is being done by a Charted Accountant.
The next most important thing you need to get the dealership of a petrol pump is the land, where you are going to establish it. You can completely own the land or can take it on long term lease as well, the choice is completely yours. You should need to produce the proper documentation of the related land in order to produce your ownership on it. Moreover, the land you are going to produce mush fulfill all the requirements being mentioned in the advertisement. Moreover, the land you are willing to open up the petrol pump should be near to a National Highway.
License Fee for the Petrol Pump
The investment sum is not just enough for owning a petrol pump, you should have to go through some more formalities as well. You should have to pay the license fees which are expected for about RS 18/KL for Motor Spirit and RS.16/KL for High Speed Diesel for Grade B and DC site retail outlets. Moreover you have to pay Rs. 48/KL for Motor Speed and Rs. 41/KL for High Speed Diesel for corporation owned Grade A and CC site retail outlets.
Registration is one of the main aspect of every applying process, where you have to pay a sum of Rs. 100 for rural retail outlets and Rs. 1000 for regular retail outlets as well. Moreover, the oil companies also offer a fee relief of about 50% to the SC/ST candidates. The applying candidates should need to pay their fee in the form of DD. The application fee you are going to pay is totally non-refundable and really doesn’t have to do with the confirmation of dealership allotment. No applicant can apply multiple times for a single site only, but they can bid for the multiple sites as well.
How to apply for the dealership of a petrol pump?
Generally the advertisements for petrol pumps are being done by the different oil marketing companies, where you can apply for the one on a particular location. The interesting candidates are allowed to fulfill the required application form on or before the last date into the required address. Don’t forget to read all the instructions carefully to get aware about the current scenario. You are also supposed to submit the hard copies of related documents at the postal address of the related company. For more enquiries, you can also make a secure login to the official webpage of the company or even can make call as well on their provided customer care number. ESSAR Group, IOC Group, Hindustan Petroleum, and Bharat Petroleum are one of the major retail Oil Companies of India.