Petrol Pump License Online in India
Start your fuel station business with Tax Pal Solutions and get expert guidance on Petrol Pump License applications, land selection, documentation, and OMC coordination.
What is a Petrol Pump License?
A Petrol Pump License is an official authorization required to operate a fuel station and sell petroleum products such as petrol and diesel. This license ensures:
- Regulated sale & distribution of petroleum products
- Adherence to safety and quality standards
- Compliance with guidelines of PESO (Petroleum & Explosives Safety Organization)
Role of Oil Marketing Companies (OMCs)
- Refining: Convert crude oil into petrol, diesel, and other products
- Distribution: Transport products to retail outlets and industrial clients
- Sales & Marketing: Manage retail stations and customer loyalty programs
- Price Management: Adjust prices within government regulations
- Customer Engagement: Ensure consistent demand through marketing initiatives
Types of Petrol Pump Dealerships
| Type |
Description |
Dealer Responsibility |
Investment |
| DODO (Dealer-Owned, Dealer-Operated) |
Dealer owns land & infrastructure |
Manage daily operations, staffing, sales |
High |
| CODO (Company-Owned, Dealer-Operated) |
OMC owns land & infrastructure |
Operate the station under OMC guidelines |
Moderate |
| COCO (Company-Owned, Company-Operated) |
OMC manages everything |
N/A |
None |
| Rural Retail Outlets (KSK) |
For rural areas & agricultural sector |
Manage station |
Lower |
| Corpus Fund Scheme |
For reserved categories (SC/ST) |
Minimal investment; OMC provides support |
Low |
COCO vs CODO vs DODO Comparison
| Feature |
COCO |
CODO |
DODO |
| Land Ownership |
OMC |
OMC |
Dealer |
| Infrastructure |
OMC |
OMC |
Dealer |
| Operations |
Managed by OMC staff |
Dealer-operated under OMC |
Dealer-managed |
| Dealer Investment |
None |
Working capital & deposit |
Land & infrastructure |
| Control |
Full OMC control |
OMC sets guidelines |
Dealer autonomy |
| Profit |
Retained by OMC |
Commission on sales |
Direct profits |
| Use |
Strategic locations |
Network expansion |
Most common model |
| Risk |
Borne by OMC |
Shared |
Borne by Dealer |
Eligibility Criteria
- Citizenship & Residency: Indian citizen residing ≥182 days in previous year
- Age: 21–55/60 years (varies by category)
- Education: Minimum 10th pass (higher qualifications preferred for urban/open categories)
- Financial Capability: ₹12–25 Lakhs minimum investment; funds from verified sources
- Land Availability: Clear title, accessible, size 800–2000 sq. meters depending on location
Documents Required
| Category |
Documents |
| Personal |
Aadhaar, PAN, Voter ID / DL, Passport-size photo |
| Financial |
Bank statements, ITR (3 years), CA certificate |
| Property |
Ownership/Lease proof, land map, non-encumbrance certificate, NOC |
| Location |
Site photos, layout, 7/12 Utara / Khasra, road distance certificate |
| Other |
Affidavit of non-conviction, caste certificate, business proposal |
Key Permissions & NOCs
- PESO License – Safety compliance
- District Authority NOC
- Land Use Conversion – If land zoning requires change
- Building Plan Approval – From local authorities
- Fire Safety NOC
- Environmental Clearance – SEIAA / MoEF&CC
- SPCB Consent – Consent to Establish & Operate
- Trade License – Municipal approval
- Weights & Measures Approval – Fuel dispenser calibration
- Electricity & Safety Certificate
- Highway Authority NOC – If located on a highway
Online Application Process
- Check Advertisements: OMCs publish dealership opportunities on petrolpumpdealerchayan.in
- Verify Eligibility – Ensure citizenship, age, financial & land criteria are met
- Register & Apply Online – Fill personal, financial, land details; upload documents
- Pay Application Fee – Non-refundable, varies by location and category
- Selection Process: Application scrutiny, draw of lots/bidding, field verification, interviews, LOI issuance
- Finalize Dealership: Complete NOCs, set up infrastructure, sign dealership agreement
Cost of Petrol Pump License & Investment
| Component |
Urban / Highway |
Rural |
Notes |
| Application Fee |
₹1,000 |
₹100 |
Non-refundable; 50% discount for SC/ST/OBC |
| Fixed Fee (Owned Land) |
₹15 Lakhs |
₹5 Lakhs |
Paid to OMC |
| Fixed Fee (Company-Owned) |
₹30 Lakhs |
₹10 Lakhs |
Paid to OMC |
| Security Deposit |
₹5–25 Lakhs |
₹5–15 Lakhs |
Refundable if no dues |
| License Fee (per KL) |
₹18–48 / KL |
₹16 / KL |
Varies by fuel type & OMC |
| Land Cost |
Varies (several crores urban) |
Few lakhs–1 crore |
Major expense if land not owned |
| Infrastructure |
₹50 Lakhs–2 Crores |
₹30 Lakhs–1 Crore |
Construction & setup |
| Equipment |
₹5–10 Lakhs |
Varies |
Fuel dispensers, generators, automation |
| Working Capital |
₹15–30 Lakhs |
₹12–20 Lakhs |
Initial stock & operational expenses |
| Permits & NOCs |
Several Lakhs |
Several Lakhs |
Regulatory approvals |
| Total Investment |
₹1–5 Crores |
₹25 Lakhs–1 Crore |
CODO model lowers upfront investment |
Top Petrol Pump Companies in India
| Private Sector |
Public Sector |
| Reliance Industries (Jio-bp) |
Indian Oil Corporation (IOCL) |
| Nayara Energy |
Bharat Petroleum (BPCL) |
| Shell India |
Hindustan Petroleum (HPCL) |
| Adani Welspun |
Oil India (OIL) |
| Tata Petrodyne |
ONGC |
| Cairn Oil & Gas (Vedanta) |
GAIL (India) Ltd |
