Petrol pump guide for India: open, license and run a pump

Short answer

This guide explains, in plain words, how to get, license and run a petrol pump in India: the dealership route through the oil companies, the cost, the licences, the land, fire safety, equipment, staff, fuels and complaints. Every fact names its official source and the date we checked it.

MDG Services makes Dealer Kavach, an app for petrol pump dealers, so this page comes from the maker of a product it may mention. It is general information, not legal, tax or financial advice. Rules, fees and guidelines change and differ by oil company and state: every fact here names its source and the date we checked it, so confirm it with the oil company or the authority before you act. We do not sell, allot or arrange dealerships or licences.

Facts checked on 9 November 2026. Published by MDG Services on 9 November 2026.

Topics

Getting a dealershipWho can apply, how an oil company picks a dealer, and the real route to a petrol pump.3 pages

Cost and earningsWhat it costs to start, and how the dealer commission works.2 pages

Licences and permissionsThe licences, NOCs and consents a pump needs, and who gives each one.3 pages

Land and siteHow much land, what kind of plot, and what gets a site rejected.1 page

Fire and safetyFire equipment, earthing, signs and the daily safety checks.1 page

Equipment and measurementTanks, dispensers, nozzles, vapour recovery and how each is checked.4 pages

Staff and daily runningWho does what in a day, and how GST works for a pump.2 pages

Fuels at the pumpE20 petrol, and adding CNG or an EV charger to a pump.2 pages

Customers and complaintsWhere a customer complains, and how a dealer should answer.1 page

Start here

About these pages: who writes them and how we check factsWho writes the Petrol pump guide, why MDG Services never sells dealerships or licences, and how we check facts and correct anything out of date.

A petrol pump is run by a dealer, the person or firm that holds the dealership from an oil company and sells fuel on that company's terms. Whether you want to open a pump or already run one, start with the question you have. The guide has nine topics.

What does this guide cover?

How do I get a dealership? Who can apply, how an oil company picks a dealer, and the route to a petrol pump.
What does it cost, and how does the dealer earn? What it costs to start, and how the dealer commission works.
Which licences does a pump need? The licences, NOCs and consents, and who gives each one.
How much land, and what kind? Plot size, location and what gets a site rejected.
How is a pump kept safe from fire? Fire equipment, earthing, signs and the daily checks.
How does a pump work, and who checks the equipment? Tanks, dispensers, nozzles, vapour recovery and measurement.
Who does what, and how does GST work? Staff, daily running and GST for a pump.
What are E20, CNG and EV charging? The fuels at the pump, and adding CNG or an EV charger.
Where does a customer complain? Complaint routes, and how a dealer should answer.

How are these pages written?

Every fact names its source and the date we checked it. Where oil companies or states differ, we say so and show a small table. If we cannot find an official source for a point, we leave it out and tell you where to look.

This guide is separate from the MDG 2024 guide, which explains one document for dealers. We do not sell, allot or arrange dealerships or licences. Read who writes these pages and how we check them.

Where this comes from

Petroleum Rules 2002 (English), PESO: the licensing rules behind the licence, safety and equipment pages.
Marketing Discipline Guidelines 2024, Bharat Petroleum: the public sector oil companies' guideline for their dealers.
Legal Metrology Acts and Rules, Department of Consumer Affairs: the measurement rules behind the equipment page.

About Dealer Kavach (advertisement)

Dealer Kavach is an app from MDG Services that tracks your outlet's filings, renewals, inspections and daily reports, and reminds you before deadlines, in Hindi and English.

About this page. This page is general information published by MDG Services, a brand of VRUOOM PRIVATE LIMITED (CIN U29194HR2021PTC098450), the company that makes Dealer Kavach. It is free to read and needs no sign-up.

We make an app for dealers. We make Dealer Kavach, an app for petrol pump dealers. Where a page mentions tools or services for a dealer, remember that. We state facts from the source, not our own opinion of what is best.

We do not sell dealerships or licences. MDG Services does not sell, allot, book or arrange petrol pump dealerships, land, licences or approvals, and we have no connection with any oil company's selection of dealers. Dealerships are offered only by the oil companies through their own advertisements and websites. The oil companies say no agent is authorised to ask candidates for money, and that fees and deposits are paid only through their official website. If someone asks you for money to get you a dealership, do not pay, and tell the oil company or the police.

Sources and dates. Every fact on these pages names its source: a law, a rule, a standard, a government notice or reply, or an oil company's own published guideline. Each page shows the date its facts were checked. Fees, figures, guidelines and portals change, and oil companies and states do not all follow the same rule. Check the source before you act, and tell us if anything here is out of date: we will correct it.

Not legal, tax or financial advice. Pages about licences, tax, fees or penalties explain the general position in India on the date shown. Laws and rules change, and every case is different. For your own case, speak to an advocate, a chartered accountant, or the oil company or authority concerned.

Earnings and costs are not promises. Nothing here promises a dealership, a licence, an income or a profit. Where a page gives a figure for a cost or a commission, it is what the source states on the date shown, not what any pump will earn or spend.

Other companies' names. Oil companies and every other company, product or body named here belong to their owners. We name them only to say whose rule or service a fact is about. They have not seen or approved these pages.

Report an error or send a legal notice. If you see a mistake, or need to send us a notice, write to hello@mdgservices.in. We read every message, check it, and correct or remove the page.

Limits on our responsibility. We take reasonable care to keep these pages accurate. To the extent the law allows, MDG Services and VRUOOM PRIVATE LIMITED are not responsible for loss caused by relying on this page alone. This does not limit anything the law does not allow us to limit, including responsibility for fraud or for an error we made after being told of it.

Advertisement. The box headed "About Dealer Kavach" is an advertisement for Dealer Kavach, a service from MDG Services. Everything else on this page is free information.

Hindi pages. Hindi pages are written for easy reading and say the same as their English pages. Where a page mentions a law or a guideline, the official text is the one to follow.

Full disclaimer

Report an error or send a legal notice: hello@mdgservices.in