Petrol Pump License

Petrol Pump License Eligibility

Guides » Business Startup Guide » Petrol Pump License Eligibility

Petrol Pump License Eligibility

In order to promote the transparency in awarding of petrol pump license and franchise by Oil Marketing Companies, a new dealer selection process has been formulated. Under the new process, the applicant is first checked against a pre-established eligibility criteria. All applicants conforming to the eligibility criteria are selected for the next round, wherein lots are drawn or a bidding process is used to select the dealer. Hence, eligibility criteria now plays an important role in the determination of petrol pump dealer. In this article, we look at petrol pump license eligibility criteria for individuals.

Basic Eligibility Criteria

To be eligible to obtain a petrol pump license and start a petrol pump, the individual must be an Indian Citizen and a resident of India, as per the Income Tax rules. To be considered a resident of India, an individual should have stayed in India for 182 days or more in the previous Financial year.

The applicant must also be not less than 21 years old and not more than 55 years. Proof of age of the applicant must be validated by submitting a copy of 10th Standard Board Certificate or Secondary School Leaving Certificate or Birth Certificate or Passport or Affidavit for age or Identity card issued by Election Commission.

Education Requirement

All applicants making an application for petrol pump dealership must have basic education. Rural petrol pump applicants who are SC/ST or OBC, must have passed minimum 10th standard and all other applicants must have passed a minimum 10+2 level of examination. In case of application under open category, the applicant must have passed minimum 10+2 level of examination for rural petrol pumps. For open category applicants other than rural areas, the applicant must have an educational qualification awarded by any of the universities incorporated by an Act of the Central or State Legislature in India or any other educational institution established by an Act of Parliament or declared to be deemed as a University.

Hence, for open category applicants other than rural areas, a Graduation in any field or Chartered Accountant or Company Secretary or Cost Accountant or Diploma in Engineering is required.

Investment Requirement

To start a petrol pump, the applicant must show the ability to invest a minimum of Rs.25 lakhs in case of regular petrol pumps and Rs.12 lakhs in case of rural petrol pumps. The funds for investment can be in the following forms:

  • Funds in savings accounts, deposits with Bank/Registered Companies/Postal Schemes
  • National Savings Certificates, etc
  • Bonds
  • Shares of listed Companies in Demat Form
  • Mutual Funds

Its important to not that cash, jewelry, etc.  for which ownership cannot be established will not be considered. Also, balance in current account will not be considered. For shares, mutual funds and bonds, only 60% of the value will be considered. The valuation certificate for the assets must be obtained either from a Chartered Accountant.

Land Requirement

Land is a major criteria in the selection of petrol pump dealers. The applicants are first classified into two groups as follows:

  • Land should be on National Highway
  • Applicants having suitable piece of land in the advertised location/area either by way of ownership / long term lease.
  • Applicants having Firm Offer for a suitable piece of land for purchase or long term lease.

Based on the above classification, different types of documents must be submitted by the applicant to prove ownership of the Land or intent to purchase. The area of the land must be as per the requirements specified in the advertisement. If the applicant is selected for petrol pump dealership, he/she has to make available the offered land in a developed manner up to the road level by cutting/filling, with good earth, layer-wise compacted as per standard engineering practices. The selected applicant is also required to provide retaining wall and compound wall of minimum height of 1.5 meters, designed as per site conditions.

The above are some of the major criteria for providing petrol pump license. Applicants satisfying these criteria will be allowed to progress to the next stage, wherein the final decision is made based on a draw or lots or a bidding process.

Advertisement for Land Requirement

Advertisements issued for land by IOC for various states is listed below for reference:

Want to Consult a Incorporation Expert?

IndiaFilings provides the entire range of services required to register a business in India. We can help you register a Proprietorship, LLP, Indian company or USA company. Please provide your information to consult an Incorporation Expert for free.

Income Tax eFiling

We have made the Income Tax eFiling, simple and easy. File your income tax return online with the dedicated Tax Experts support from IndiaFilings.

Authorised eReturn Intermediary (ERI ID: ERIA100945) is an Income Tax Department authorised eReturn Intermediary.

Comments (33)


Apr 04, 2017 at 9:55 AM

I m interested in petrol outlet on my own property in Ludhiana city area on main Gill road near Arora Cinema. Dimensions are 45×100.
I think your min. Requirement is 50 feet front but I m still trying it



Apr 04, 2017 at 9:55 AM

I m interested in petrol outlet on my own property in Ludhiana city area on main Gill road near Arora Cinema. Dimensions are 45×100.
I think your min. Requirement is 50 feet front but I m still trying it



Apr 04, 2017 at 3:47 PM

My name new to apply liesence,dealetship.please give information.


kamlesh yadav

Apr 06, 2017 at 9:12 AM

sir good morning , i am interested in petrol pump out let in allahabad u.p. please intimate how to make lience . regards


mangesh manohar kamble

Apr 06, 2017 at 12:26 PM

sir I am interested in to open a petrol pump so please help me by yours guidline.


mangesh manohar kamble

Apr 06, 2017 at 12:27 PM

my mobile no 9321959999



Apr 07, 2017 at 8:11 PM

I am jitendra kumar .sir I am interesting for petrol pump please help me petrol pump of tell me policy


Pushkar godse

Apr 12, 2017 at 1:49 PM

I want open petrol pump my name is Pushkar godse
con. No.8380874376


vaibhav chauhan

Apr 13, 2017 at 2:06 AM

Sir i want to install petrol pump…plz give me full instructions..thank you


vaibhav chauhan

Apr 13, 2017 at 2:09 AM

Plz give me mobile no.for support to install petrol pump…my mobile 9557760546



Apr 13, 2017 at 7:59 PM

Dear Sir, I am interested to start petrol pump in my own land . I have fullfiill with your all rule & regulations.
Address:- a/p Mahagaon, (no way of Nesari 1/2 km from Mahagaon.)
Tal:- Gadhinglaj, Did:- Kolhapur,
State:- Maharashtra.
SO PLS It’s my kind request to you to guide for the same.
Thanks & Regards.
Dhananjay M. Kole.(M B A . Marketing & H R.)


Pradip Bera

Apr 15, 2017 at 8:23 AM

Plz tellme how to setup a new petrol pump.


Sanjeev Kumar

Apr 15, 2017 at 4:12 PM

Sir I am interested to open a petrol pump.. So please sir help me…
My contact no…7055445566


Rahul Vyavhare

Apr 16, 2017 at 10:12 AM

I am Rahul Vyavhare sir i am interested to open a petrol pump… So please sir help me ..
My contact no…9403200627


Satish chandra tiwari

Apr 19, 2017 at 3:45 PM

My name is Satish Chandra Tiwari i m a retired army officer. I am interested in opening petrol pump in my village because near about my village there is no petrol pump people of this area use to suffer for the petrol. Please contact me on 7987232964



Apr 22, 2017 at 1:10 PM

I’m interested in petrol pump
Sharanreddy from karnataka



Apr 23, 2017 at 6:50 AM

I want open petrol pump in rural Pune area.
Please give full information. Please contact me on 8551067071.



Apr 24, 2017 at 12:24 PM

Dear sir,
I am interested the new petrol bunk, and how to apply the license and give more information



Apr 29, 2017 at 10:40 AM

This is umesh from Valsad Rural village, we seen every body having motorcycle and 4 wheeler, they wanted fill tank day after tommorrow, and from our village petrol pump is far away from our village, i.e approximatly 10 km,
I am a graduate person from B. com Stream, I wanted to know how to get petrol pump License in valsad, rural area, gujarat.

Can i apply with huge investment, please guide me..


vijay yadav

Apr 30, 2017 at 9:57 PM

i want to open petrol pump


vijay yadav

Apr 30, 2017 at 9:59 PM

i want to open petrol pump ,mobile-9939045942


Shaik mohammad bilal

May 08, 2017 at 7:25 PM

Sir i am new petrol bunk open


Shaikh Javed Ahmad Abdul munaf

Aug 31, 2017 at 5:23 PM

I am Javed I want you to start petrol ? pump. Please suggest me…..


mahesh kumar

Sep 06, 2017 at 2:47 PM

dear sir this is mahesh kumar from hyderabad…im interested to Install the petrol bunk in our village its come under rural area….I don’t have own land but I will purchase which will required space so please give me information about land &processes to applying the license……. Exactly cost for instal the bunk….


Subhash pandav

Sep 27, 2017 at 12:09 PM

Maharashtra amravati road paratwada place


Anirudh Kumar

Dec 28, 2017 at 11:14 AM

I am interested to install petrol pump in my village majhi baruli Road Nawtan Bazar District Gopalganj jamo Bazar >2km<8km near baruli bazar My mobile number i 9572161891 7807075262 8219604532 please suggest me



Jul 20, 2018 at 7:55 AM

I would like to get petrol bunk license in rural area ,please give details to get license and who to I approach?


Kedar Biradar

Aug 01, 2018 at 3:36 PM

Pls sir new linces give me sir in dist vijyapur in indi taluk pls



Aug 31, 2018 at 5:09 PM

I am interested to open petrol pump in my hometown Rudrapur Distrist Deoria. Give me informetion.



Sep 11, 2018 at 9:17 PM

Sir give me information about patrol pump
Contcet no. 9672059794



Oct 21, 2018 at 3:19 PM



Uma Shankar

Dec 05, 2018 at 9:35 PM

I want to open a petrol pump plz help me


MD Zahir Uddin Baidya

Dec 23, 2018 at 9:40 PM

Hello sir,
I am Md Zahir Uddin Baidya. I want to open new petrol pump in rural area. Please give me information how to apply the licence. Please contact on 7980272373


Leave a comment