Saransh Tiku - He has worked with Tata Motors Finance for 4 years handling Fuel Loans, Diesel Loans, working directly with Indian Oil & Hindustan Petroleum. He was also going to set up his own petrol pump but instead decided to start a Cloud Petrol Pump - I’ll explain that at the end.

What are we going to discuss?

We’re going to discuss in detail everything about Petrol Pumps including how much money you need to set it up and how much money you can expect to make every month including:

• The basics of how you even set up a petrol pump
• The capital requirement to start a pump
• The 2 main business models to operate a pump and the margins that you can expect for each.
• Differences between Urban, Rural & Transport Hub pumps
• How the sales break up between Petrol vs. Diesel and how that impacts margins.
• The operating expenses and how much money you can expect to earn per month.
• The Working Capital requirements to run the pump

Petrol 1.mp3

The Basics

There are 6 OMC’s - oil marketing companies. These are the companies that are allowed to sell fuel to the public. From these 6 - 3 are government owned:

• Indian oil,
• Bharat Petroleum,
• Hindustan Petroleum,

and three are private:

• Shell,
• Nayara (Nayara used to formally be called ESSAR until it got bought by Rosneft Oil - russian company) and