Introduction
A petrol pump license facilitates companies' selling and marketing of petroleum-related products to consumers. This legal authorization is also required to operate a fuel pump.
The process to obtain this license is structured and intricate and requires fulfilling all the eligibility criteria in due time.
ONGC, IOC, Reliance Petroleum Limited, and IGL are some of the top manufacturers of petrol in the market.
These companies publish newspapers and forms for interested applicants.
Petrol Pump License
A petrol pump license serves as a lucrative business opportunity that offers steady money.
The market for petroleum and related products is never-ending and therefore it serves as a proficient business venture.
Petrol Pump License regulates the circulation of petroleum and gasoline products in the industry. It ensures necessary quality checks along with the prevention of black-marketing and hoarding of petroleum and gasoline.
Essential Conditions for Starting an Indian Petrol Pump
Several criteria are required to be fulfilled and they vary from state to state.
But a set of requirements that are essential for every state are–
• Indian Citizenship i.e. the applicant can only be an Indian Citizen. To be eligible for citizenship a person has to spend a minimum of 182 days in India in the prospective financial year.
• Proof of Identification
• The applicant should be aged between 21 and 58 years.
• Proof of age. It can be provided and verified by a government document such as a Birth Certificate, Passport or Voter Id Card.
• Proof of Identification
• It is to be noted that the applicants who lie in the category of freedom fighters are excluded.
Petrol Pump License Cost in India
The cost of this license varies from region to region. Every state has different taxes and duties in this regard.
On a general basis, the approximate costs lie between lakhs to a few crores.
How Much Money Required for a Petrol Pump License?
An applicant must prove that he/she is financially capable of making an investment of at least Rs. 25 lakhs in a standard petrol pump. The limit for operation in a rural area is Rs. 12 lakhs.
This capability can be proved with the help of documents such as bonds, shares in demat form, bank deposits and postal schemes.
The assets with uncertain worth such as jewellery will not be considered.
It is important to note that a Chartered Accountant must provide the assessment certification for this application.
How to Apply for a Petrol Pump License?
The first step involves advertisement in newspapers or online advertising by Oil Marketing Companies (OMCs) This advertisement highlights that these companies intend to set up fuel pumps in various parts of the country. Some companies also feature an application form on their official websites.
In case of a large number of applications, an applicant is chosen with the help of a lottery scheme.
The selected candidate is then required to fulfil the required obligations and all the necessary documentation in the desired time frame to procure a license.
After the commission of a license, an applicant receives a GSTIN number i.e. Goods and Services Tax Number which is required to file for GST and a current account that exists on behalf of the fuel station.
Documents Required for Petrol Pump License
• Proof of ownership of land. (Lease Agreement)
• PAN Card
• Commercial land use certificate
• GST Registration Certificate
• Identification Proof
• Address Proof
• Bank Statements
• Income Tax Returns
• Fire Safety Certificate
• Environmental Clearance
• PESO’s Approval
• Layout Plan
• Character Certificate of Applicant
• NOC/Approval from Oil Manufacturing Companies
What are the Criteria for Obtaining a Petrol Pump License?
• Visit the below-mentioned website
https://www.petrolpumpdealerchayan.in/.
• Select ‘Register Now’ to register a new user.
• Fill in the required details.
• After creating an ID and password, login with the credentials and select ‘Available Advertisement’.
• Enter the details of the company and the name of the state
• Select the area.
• Click on ‘Apply Now’.
• Select the option from ‘Partnership’ or ‘Individual’.
• Click on the Submit button.
• Proceed with the payment to complete the process.
Conclusion
The profit and loss of a fuel station depends upon a number of factors such as location and crowd. A fuel station near an urban area attracts more crowds in comparison to a rural area.
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