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written by | March 14, 2022

How to Get Hindustan Petroleum Franchise?

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In India, the number of vehicles we see on the roads is on the rise. A major reason for this is the significant improvement in the quality of lifestyle people lead. As a result, automobiles have become more of a necessity than a luxury. This has greatly impacted the fuel consumption per head of our country as compared to the last few decades. All this is driving the demand for petrol pumps more rapidly.

Fuel is one of those necessities that people will buy irrespective of however high or low the prices are. And for this reason, starting a Petrol Pump is a very profitable business idea. Especially when it’s located in a busy locality of the city or near highways, the total profit margin is seriously high. Along with catering to fuel requirements, if it can provide other amenities such as roadside emergency assistance, telephone booth facility, advanced first-aid, and washroom facility, the chances of your petrol station attracting regular customers is very high.

As per statistics, India is the 3rd highest nation on records for oil consumption. Which makes our country a highly substantial and growing market for opportunities in this industry. For people looking to be their own boss and start their own business with adequate resources and capital in hand, this might seem like a profitable and stable domain, to begin with. 

Did you know? HPCL has the second-largest share of petroleum pipelines in India with a network of more than 19602 petrol stations with various petroleum products?

Why Choose HPCL for Petrol Pump Dealership?

Hindustan Petroleum Corporation Limited was incorporated in 1952 and has been serving its customers for the past 70 years.

Also Read: How to Start a Tea Time Franchise

Being a subsidiary of the Oil and Natural Gas Corporation, it has captured around 25% of the Indian market share. In the Gas and Petroleum sector, with a total asset value of 1,89,906 Crores, it is one of the largest petrol dealerships in India.

Hindustan Petroleum holds a significant and vital position because of its brand value. Here are some key features to note about HPCL.

  • HPCL is on the Fortune 500 and Forbes 2000 company list.
  • HPCL aims at transforming the gas and petroleum industry with solutions that suit every customer’s needs.
  • HPCL has a total of 19602 retail petroleum outlets in India.
  • In their franchise business, Hindustan Petroleum Corporation only associates with extremely talented and skilled people.

Eligibility Criteria for Opening HPCL Retail Outlet

The first thing you need for taking an HP petrol pump dealership is a petrol pump license. For the Dealer-owned site of HPCL retail outlets, this license fee is around 1.18 per KL of petrol and 1.16 per KL of diesel. 

Here are a few criteria you need to fulfil first in order to be eligible:

  • The applicant should be an Indian citizen. If an NRI is applying for a petrol pump, he must have resided in India for at least six months before applying. 
  • Age limit for the applicant: 21 to 55 years 
  • For proof of date of birth, the applicant must attach a copy of the class 10th mark sheet.
  • The applicant must be 10th pass if they want to open a petrol pump in the rural area whereas, for urban, they need to be 12th pass.
  • Relaxation for the families of freedom fighters for age limit and minimum qualification criteria is provided.

Minimum Land Requirement for HPCL Petrol Pump Retail Outlet Dealership

One of the main things for establishing a petrol pump outlet is the land. It could be your own or at a long-term lease. However, documents for the same should be accompanied whether it's a sale deed or lease document to verify the ownership of the land in use. The location of a petrol pump directly affects its profitability. The petrol pump outlets are classified into two categories.

  • Regular Retail Outlets are located in urban and semi-urban areas. 

  • Rural Retail Outlets located in rural areas.

However, the minimum land requirement for opening a retail outlet in the city would be around 800 square meters. Whereas for opening a petrol pump dealership on the State or National Highway, the minimum land requirement would be 1200 square meters. Also, there should be sufficient provisions for water and electricity on the land.

Also Read: Start a Reliance Petrol Pump Dealership Business

Documentation required for obtaining HPCL Petrol Pump Franchise

  • Address Proof.
  • For the date of Birth Proof, you need to carry either Aadhaar Card, Birth certificate, voter ID, passport, or Transfer certificate.
  • Degree/Mark sheet from recognized boards/ universities.
  • Land valuation certificates.
  • A copy of the Demat statement.
  • Copy of Passbook, account statement, and deposit receipts.
  • Copy of mutual fund certificates if any.

HP Petrol Pump Application Form and Fees

The applicant can apply for HPCL retail outlets both online and offline.

  • For offline submission: The applicant has to fill out the prescribed application form along with the affidavit for the dealership in the given format.
  • For online submission: To apply, the applicant needs to register online on the website. Click on the registration option and provide all the requisite details for the application registration and click on submit.
  • Along with the application form, the applicant needs to pay a nominal fee in the form of a demand draft in favour of HPCL.
  • For Rural HPCL Retail Outlet, an application fee of 1,100 has to be paid. And for SC/ST applicants the fee is 150.
  • For the Regular HPCL Retail Outlet, an application fee of 11,000 has to be paid and the fee for SC/ST category is only 1,500.

HPCL Petrol Pump Investment Cost

In order to set up an HPCL petrol pump outlet, capital investment is required in line with the cost of land, the size of the plot, and the facilities that must be developed to satisfy the needs of the consumers. There are two kinds of investment requirements. 

  • The first is in the form of brand security:  Once the application is approved, the investment in form of brand security is required to obtain the Hindustan Petroleum franchise.
  • For a Regular HPCL outlet, an investment of 1.25 Lakhs is required.
  • For Rural HPCL outlets, it is around 1.12 Lakhs.
  • For meeting the working capital requirement: The funds required to meet the day-to-day operating expenses for running a business varies from outlet to outlet.
  • These funds can be in liquid form or the form of Shares, National Saving Certificates, Mutual Funds, etc as prescribed in the guidelines by the HPCL authorities.

HP Petrol Pump Dealership Contact Number and other Details

  • Company Full Name: Hindustan Petroleum Corporation Limited
  • Industry: Petroleum and Natural Gas
  • Founded Year: 1974
  • Chairperson and CEO: MR. Mukesh Kumar Surana 
  • Headquarters: Mumbai, Maharastra, India
  • Parent Company: Oil and Natural Gas Corporation
  • HP Dealership Contact number: 1800 233 3555  

Conclusion

Being an absolute necessity, the petroleum business has always been in great demand and will continue to be so. What makes a petrol pump dealership profitable is the fact that you don't have to pay a royalty fee or a commission to run the business. And one can always compile additional services to make the customer experience more comfortable and valuable. Another important factor is the reputation of the brand name, Hindustan Petroleum is undoubtedly considered one of the top players in the market. So such a dealership can prove to be a significantly profitable business.  

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FAQs

Q: Is it profitable to own a petrol pump in India?

Ans:

In India, starting a petrol pump is a high-investment business idea. Still, it is also a very lucrative one. A petrol pump owner can easily make a profit from the commission rate between 1 to 2 per litre.

Q: Which are the best fuel companies in India?

Ans:

Here are a few top fuel companies in India:

  • Hindustan Petroleum Corporation Limited 
  • Indian Oil Corporation Limited 
  • Shell India Private Limited
  • Reliance Industries Ltd. 
  • Bharat Petroleum Corporation Limited

Q: Can I transfer my petrol pump license?

Ans:

No,one cannot transfer a petrol pump license to anyone else. If you wish to transfer, the franchise-related documents must be surrendered or you need to withdraw yourself from the franchise.

Q: How do I start a petrol business?

Ans:

Analyze the minimum investment required to start a petrol pump based on the location and other factors. Draw out the initial operating cost of starting a petrol pump in India. Meet the criteria for land required to install petrol pumps. Submit the application form with prescribed fees.The applicant should meet all the eligibility criteria for a petrol pump dealership.

Q: How do I apply for an HP petrol pump online?

Ans:

You can visit the site at https://www.hindustanpetroleum.com to apply online.

Q: What’s the size of the land required for establishing a petrol pump?

Ans:

The land required for starting a petrol pump business in India is commonly between the range of 800 sq meters to 1200 sq meters.

Q: What are some basic skills a person needs to have to start a petrol pump business?

Ans:

Some of the required skills that are needed to open up a petrol pump business are one has to have good management and operational skills to maintain a team of employees.

Q: What is the starting investment required for a petrol pump business?

Ans:

The total investment required to start a petrol pump business in India is around 25 to 30 Lakh Rupees for metropolitan cities and 12 to 14 Lakh Rupees for Rural or village areas.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.