Cost of Opening a Petrol Pump in India: Complete Breakdown for Entrepreneurs

Author: Myindifuels Biodiesel Pump Dealership

Opening a petrol pump in India is one of the most attractive business opportunities. With rising demand for fuel across transport, agriculture, and industry, petrol pumps ensure steady income and long-term growth. But one of the first questions aspiring entrepreneurs ask is: What is the cost of opening a petrol pump in India?

The answer depends on several factors—land, location, type of dealership, and whether you go with a public sector OMC (like IOCL, BPCL, HPCL) or private players (Reliance, Nayara, Shell, or biofuel companies like My Indifuels). Let’s break it down step by step.

  • Factors That Influence the Cost of Opening a Petrol Pump

  • Type of Dealership

    • PSU dealerships (IOCL, BPCL, HPCL) are costlier due to infrastructure and compliance needs.

    • Private and biofuel dealerships are relatively more affordable.

  • Land Cost

    • Biggest variable in investment.

    • Highway and urban locations cost significantly more than rural plots.

  • Infrastructure Setup

    • Forecourt, canopy, storage tanks, pipelines, safety systems, office building, and fuel dispensers.

  • Licensing & Compliance

    • PESO license, NOCs, environmental clearances, and GST registration.

  • Working Capital

    • Initial fuel stock and day-to-day operational costs.