Starting a petrol pump business one can think of. In this article, I will share with you the complete guide on how you can start a petrol pump business.
When we are about to start a business we must study what are the characteristics and peculiarities of the business. A petrol pump business can be profitable. But, considering how to start a petrol pump business, leads to the realization that this type of company is subject to different regulations, and requires numerous licenses.
This article refers to the most important points on how to set up a petrol pump business.
How much does it cost to set up a petrol pump business?
This is one of the quickest questions when it comes to this type of business. Of course, the answer will depend on the type of petrol pump business, the extension, the location … Therefore, specialized advice and a previous feasibility plan are advisable. The reason is very simple, it is a business that requires a high investment and profitability, contrary to what it may seem, is not guaranteed.
It can be said, however, that if the minimum investment is sought, it can be spoken of about € 230,000, for a type of low-cost petrol pump business (supply unit instead of the service station) that sells only GOA Gas oil and SP 95 gasoline.
Note that different countries may have different prices for machines and other necessary things that are required for petrol pump business.
For this calculation, a 500 m2 plot and automatic systems have been taken into account, including a couple of pumps with card payment equipment, approved cash payment terminal, marquee, video surveillance systems and regulatory fires, technical booth and deposit made out of fuel.
In any case, a good location is essential to be profitable. Regarding the need to hire or not staff, you must comply with the regional regulations.
Requirements to open a petrol pump business
Opening a petrol pump business requires numerous permits and authorizations, which is why it takes time. The requirements are discussed below.
It should be noted, however, that the administrative concession is not part of the process of how to set up a petrol pump business. Besides, this type of business can be set up by anyone (physical or legal).
In the first place, a sufficiently developed project is necessary (although it is not necessary to present the construction project) on which the General Directorate of Roads must be consulted. The resolution of said query is binding.
Once the query is evacuated, it will be necessary, this time, for a competent technician with the corresponding college visa to carry out the construction project, including all the elements required by current regulations.
To carry out the project, it will be necessary to apply for and obtain a building license and, subsequently, an activity license. In both cases, they must be requested and processed at the corresponding town hall.
But besides, it will be necessary to request and obtain authorization for installation in all or part of the public road domain, which must also be processed before the General Directorate of Roads (the procedure includes public information, provisional authorization and, where appropriate, authorization final); And the certificates of conformity for the start and completion of the work, the authorization for the installation of sale to the public, the registration of the fuel tank and the certifications of the rest of the elements of the petrol pump business. Finally, the authorization to open a service station.
But the requirements do not conclude here, since the owner of the petrol pump business will be a producer of waste, must carry out the corresponding supply contracts and register in the merchant registry.
Steps to open a petrol pump business
Taking into account all of the above, how to open a petrol pump business can be summarized in the following steps:
- Advice and study of requirements and feasibility.
- Acquisition or lease of the parcel on which the petrol pump business is to be established.
- Obtaining the favourable report by the General Directorate of Roads.
- Realization of the technical project.
- License application.
- Execution of the work and other facilities.
- Completion of works and facilities and purchase of fuel, prior negotiation of the corresponding supply contracts.
- Inspections, tests and opening.
As you can see, setting up a petrol pump business is not an easy process, since many requirements and procedures are necessary to create a company of this type. However, removing the administrative procedures, the start-up of a petrol pump business must be carried out like that of any other company.
For this, it is necessary to carry out a business plan that describes all the particularities of our business project and all the important decisions to ensure its future viability.
Please note that starting a business requires permission and other requirements and that can vary from country to country. Do proper research and contact the petrol pump franchise for details that you need. If you want to open a reliance petrol pump or Indian oil petrol pump then you need to contact them for complete details about cost and other procedures.