The owner of a petrol pump earns on the strength of margin per liter in this business. A certain commission is fixed on every liter of petrol or diesel, which is the main source of owner’s earnings. Petrol pump business can be a beneficial business, especially if the operators have an up -up petrol pump set up on a good location and they generate more quantity of sales. Petrol pump dealership may vary from commission location and agency. About half of the amount paid per liter of diesel and petrol per liter is tax, commission and fee.
This is how earning
Every liter fuel sold petrol pumps earns a certain commission. Generally, there is a margin of ₹ 1.5 to ₹ 3 per liter for petrol and about ₹ 2 to ₹ 3 per liter for diesel. Suppose an average urban petrol pump can sell between 10,000 and 20,000 liters every day, resulting in daily income ranging from ₹ 15,000 to ₹ 60,000. Rural outlets, though work in small amounts, can earn profits if strategically deployed.
Many petrol pumps provide additional services so that the portfolio can be diversified. Owner can sell facility stores, snacks, drinks and automotive accessories at petrol pumps. Apart from this, car wash, tire services and small vehicle repair services as a service station are also earned by adding to the outlet.
Minimum cost to open petrol pump
According to Paisabazaar, a minimum of Rs 15 lakh to Rs 20 lakh is required to open petrol pumps in rural areas, while the investment amount for opening petrol pumps in urban areas is Rs 30 lakh to Rs 35 lakh. (If the land is of itself).
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