What a petrol pump costs to start: the money oil companies ask for

Short answer

The June 2023 guideline gives no single total for starting a petrol pump: each oil company advertisement states, for its own location, the estimated working capital and the funds needed to build the outlet Selection brochure June 2023, cl.8(C), cl.24. The fixed payments in the June 2023 guideline, as on 9 November 2026, are an application fee of Rs 2,500 to Rs 10,000, a refundable security deposit of Rs 2 lakh to Rs 5 lakh, and for some site types a fixed fee of Rs 5 lakh to Rs 15 lakh or a minimum bid of Rs 10 lakh to Rs 30 lakh Selection brochure June 2023, cl.12, cl.13, cl.20.

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 does it cost to start a petrol pump?

There is no single figure. The advertisement for each location lists the estimated working capital, the estimated fund to develop the outlet, the fixed fee or minimum bid, and the security deposit Selection brochure June 2023, cl.24. It warns that sales volumes may change and tells applicants to make their own assessment Selection brochure June 2023, cl.24. Fees for approvals are set by each authority: see licences.

What do you pay the oil company?

Payment	Regular outlet	Rural outlet
Application fee, not refundable (Open, OBC, SC/ST)	Rs 10,000, Rs 5,000, Rs 3,000	Rs 8,000, Rs 4,000, Rs 2,500
Security deposit, refundable (Open, OBC, SC/ST)	Rs 5 lakh, Rs 4 lakh, Rs 3 lakh	Rs 4 lakh, Rs 3 lakh, Rs 2 lakh
Fixed fee, dealer-owned sites	Rs 15 lakh	Rs 5 lakh
Minimum bid, company-owned sites (not Corpus Fund)	Rs 30 lakh	Rs 10 lakh

Amounts are as on 9 November 2026. The application fee, fixed fee and bid include GST Selection brochure June 2023, cl.12, cl.13. Of the security deposit, 10% is paid within 10 days of the draw and the rest before the letter of appointment Selection brochure June 2023, cl.20. The fixed fee or bid is due within 15 days of receiving the NOC Selection brochure June 2023, cl.13.

Where the company has invested in land and facilities, a licence fee per kilolitre is also payable. The June 2023 guideline lists, as on 9 November 2026, petrol Rs 435.83 and diesel Rs 363.19 for company-owned sites, Rs 196.51 and Rs 163.76 for dealer-owned ones, with GST, "as applicable from time to time" Selection brochure June 2023, cl.8(E).

Who pays for what on the site?

Item	Company-owned site	Dealer-owned site
Land levelling, entry, exit, boundary wall	Dealer	Dealer
Tanks, dispensers, signs, automation	Company	Company
Office, toilet, electrical room, connections	Company	Dealer
Canopy and driveway	Company	Dealer
Generator or inverter	Dealer	Dealer

Fire-fighting and safety equipment is the dealer's, at own cost, at every site Selection brochure June 2023, cl.8. The selected candidate also arranges the working capital Selection brochure June 2023, cl.8(C). On company-owned sites, the land you offer is registered in the company's name by long-term lease or outright sale Selection brochure June 2023, cl.4(vi).

Is there help for SC/ST locations?

Yes, under the Corpus Fund Scheme. The company builds a ready outlet at its cost on the land offered, and lends working capital equal to 7 days' sales, up to 18 KL of petrol and 18 KL of diesel, at SBI MCLR plus 1% or 11% a year, whichever is lower Selection brochure June 2023, cl.9.

Where this comes from

Selection brochure, June 2023: every figure on this page.
Dealer Chayan portal: advertisements with each location's figures.

In this section

Petrol pump dealer commission: how it works and the latest rateHow a petrol pump dealer's commission works: a fixed amount per kilolitre plus a share of the billable price, the latest PPAC rate and an example, as on 9 November 2026.

Questions people ask

01How much does it cost to open a petrol pump?

The June 2023 guideline gives no total, because each location's advertisement states its own estimated working capital and building funds Selection brochure June 2023, cl.24. The fixed payments are in the first table.

02What is the security deposit for a petrol pump dealership?

It is interest-free and refundable, from Rs 5 lakh (Open, regular outlet) down to Rs 2 lakh (SC/ST, rural). It is forfeited if the dealership ends for proven adulteration or malpractice Selection brochure June 2023, cl.20.

03What is the petrol pump setup cost without land?

Applicants who offer no land can apply only for SC/ST locations, and must offer land within 90 days when the company asks Selection brochure June 2023, cl.4(vi). The company then builds a ready outlet at its own cost on that land Selection brochure June 2023, cl.9. For other locations you need land.

04Is a petrol pump profitable?

This guide gives no earnings figure. The advertisement tells applicants to make their own assessment of potential Selection brochure June 2023, cl.24. See dealer commission for what the company pays per kilolitre.

How an oil company picks a petrol pump dealer: the selection processHow an oil company picks a petrol pump dealer in stages: advertisement, online application, draw of lots or bidding, checks, letter of intent. 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.

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.

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