How an oil company picks a petrol pump dealer: the selection process

Short answer

An oil company picks a petrol pump dealer in stages: a newspaper advertisement, an online application with a fee on the dealer chayan portal, a computerised draw of lots or bid opening, document and land checks, and then a letter of intent Selection brochure June 2023, cl.14, cl.16. Dealer-owned and Corpus Fund sites go by draw of lots, and other company-owned sites by bidding Selection brochure June 2023, cl.14. All payments are made only on the portal, and none goes to an agent Oil companies fraud notice.

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.

What are the stages, in order?

Advertisement. The company advertises in newspapers and on the portal, with the last date Selection brochure June 2023, cl.14(C), cl.14(D).
Application. You register, fill the form and pay the fee online. One application per location Selection brochure June 2023, cl.14(E).
List and draw. Eligible applicants are listed on the portal. A computerised draw or bid opening follows, as far as possible at the District Collector's or District Magistrate's office Selection brochure June 2023, cl.14(H).
Provisional selection. The chosen applicant uploads documents and pays 10% of the security deposit within 10 days Selection brochure June 2023, cl.14(E).
Land check. A company committee visits the plot, with 10 days' notice Selection brochure June 2023, cl.14(I).
Field verification. Original papers are checked, with 10 days' notice Selection brochure June 2023, cl.15.
Letter of intent. Issued after field verification, not before 30 days from the result Selection brochure June 2023, cl.16.

Draw of lots or bidding: which applies?

The site type, which the company sets, decides Selection brochure June 2023, cl.3, cl.14.

Site type	How chosen	Fixed fee or minimum bid
Dealer-owned ("B" or "DC")	Draw of lots	Fixed fee Rs 15 lakh regular, Rs 5 lakh rural
Company-owned ("A" or "CC")	Bidding; a draw only if bids tie	Minimum bid Rs 30 lakh regular, Rs 10 lakh rural
Corpus Fund (SC/ST)	Draw of lots	None listed

Amounts are as on 9 November 2026, include GST and are not refundable Selection brochure June 2023, cl.13.

What if only one applicant qualifies?

At a draw-of-lots location the lone eligible applicant is declared provisionally selected without a draw; at a bidding location the lone bid is opened Selection brochure June 2023, cl.14(H). Group 1 (land held) goes first; Group 2 (firm offer) only if Group 1 has nobody suitable. If a winner is found ineligible, a redraw is held or the next highest bidder is chosen Selection brochure June 2023, cl.14(H), cl.17.

What fees and complaints are official?

The application fee for a regular outlet in the Open category is Rs 10,000, and for a rural one Rs 8,000, including GST Selection brochure June 2023, cl.12. See what it costs for every fee. A complaint against a selection needs a Rs 5,000 demand draft and must come within 30 days of the draw Selection brochure June 2023, cl.18. No payment goes to an agent Oil companies fraud notice.

Where this comes from

Selection brochure, June 2023: stages, fees, time limits.
Dealer Chayan portal: advertisements, payments.
Hindustan Petroleum dealership page: brochure list.
Fraud notice: payments only on the portal.

Questions people ask

01What is petrol pump dealer chayan?

It is the retail outlet dealer selection portal of the oil marketing companies, where advertisements, applications and payments are handled Oil companies fraud notice. Chayan means selection.

02Which guideline applies, dealer chayan 2018 or 2023?

Hindustan Petroleum lists the June 2023 brochure as the newest and the 24 November 2018 brochure as earlier HPCL dealership page. Check which brochure an advertisement names.

03How long does petrol pump dealer selection take?

The guideline gives limits for each stage, not one total. The limits are 10 days, plus 10 more after a reminder, to upload documents, 10 days' notice for each check, and a letter of intent not before 30 days after the result Selection brochure June 2023, cl.14, cl.16.

04What happens if I miss a deadline after being selected?

If the documents or the initial security deposit do not come within the extra 10 days, the candidature is cancelled Selection brochure June 2023, cl.14. A deposit already paid is forfeited if the documents are late Selection brochure June 2023, cl.20.

How to open a petrol pump in India: the real route to a dealershipThe real route to a petrol pump dealership in India: the oil company's advertisement, online application, draw of lots or bidding, then approvals. As on 9 November 2026.

Who can apply for a petrol pump dealership: age, education, landWho can apply for a petrol pump dealership in India: age, education, land, firms and companies, reserved categories and what disqualifies, from the June 2023 guideline.

What a petrol pump costs to start: the money oil companies ask forWhat it costs to start a petrol pump in India: the fees, deposits and bid amounts in the June 2023 dealer guideline, and who pays for what. As on 9 November 2026.

Licences, NOCs and approvals a petrol pump needs in IndiaWhich licences, NOCs and consents a petrol pump in India needs, who gives each one and what it covers, from the Petroleum Rules and PESO, checked on 9 November 2026.

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