What is the total cost of opening a petrol pump in India?
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The total cost of opening a gas station in India can vary depending on several factors, such as location, infrastructure, and pump type. The required investment is detailed below:
Land cost: Land costs can range from ₹20 lakhs to ₹1 crore, depending on the location and the size of the land required.
Construction cost: The cost of constructing a gas station can range from ₹30 lakhs to ₹1 crore, depending on factors such as the design, materials used, and the size of the station.
Equipment cost: Equipment costs include the cost of fuel dispensing units, storage tanks, and other equipment required for the operation of the gas station. This cost can range from ₹20 lakhs to ₹50 lakhs.
License fees: License fees include the cost of obtaining the necessary permits, licenses, and approvals from government authorities. License fees can range from ₹2 lakhs to ₹5 lakhs.
In general, the total investment required to open a gas station in India can range from ₹1 crore to ₹5 crore or more, depending on the factors mentioned above.
This information refers to my clients who own gas stations.
Investment Cost (including land):
Land Investment: First, you need land. Gas station companies will pay rent for the site. This could cost a minimum of Rs. 25 lakh in any small town if the area is approximately 500 square feet of non-agricultural land, which must also be on a main road or highway.
Setup Cost: It depends on the company, but you should consider between Rs. 30 lakh and Rs. 50 lakh, depending on capacity.
Registrations and Other Permits: You can add around Rs. 5 lakh for this. Generally, in states like Maharashtra, you are required to obtain an NOC from the Collector to open a gas station, which takes quite a while. In addition, other permits are also required.
Total Project Cost: Rs. 60 lakh would be the minimum investment amount to start a gas station in India.