petrol pump business plan in pakistan

How To Open Petrol Pump In Pakistan?

When it comes to starting a business, the most important factor to consider is the availability of funds. Previously, establishing a gas station (also known as a petrol pump) in Pakistan required a large financial investment and was seen as a business for Pakistan’s wealthy and influential. However, since 2002, when local private OMCs were allowed to set up sites across Pakistan, building a gas station and getting into the oil retail sector has become easier and more financially viable. A person can now buy a franchise of a private Ltd OMC for as little as Rs. 200,000/-, however OMCs with a solid reputation continue to charge more.

• The cost of obtaining No Objection Certificates (NOC) from various organizations/government departments, as well as the cost of commercializing the land on which the pump will be built.
• The cost of the gas station’s construction, which includes the cost of civil work, materials, and so on.
• Costs of infrastructure development such as a canopy, tanks, and flooring tiles, among others.
• Dispensers, generators, and other machinery require money.
• Working capital is required to purchase petroleum products for resale.

So, here’s the million-dollar question: how much money is required to construct a petrol station in Pakistan?

The solution is entirely dependent on you and your preparation. A low-cost petrol station with no canopy and rudimentary facilities and machinery might cost anywhere between 6 and 10 million rupees. A typical petrol station with a typical configuration will cost between $10 and $20 million. It will cost you more than 20 million rupees to 45 million rupees to build a hefty site with all the standards and state-of-the-art machinery.

These figures are for places outside of major city regions, and land costs are not included. If you wish to open a filling station in one of Pakistan’s main cities, it will cost significantly more than these estimates due to the commercialization of land, which is far more expensive within the city limits and can cost up to tens of millions of rupees.

Is it profitable to run a fuel station in Pakistan?

Operating a single Shell service station, or a group of Shell service stations, is a significant commitment. Because many of our service stations provide a variety of fuel and non-fuel products and services and are open 24 hours a day, 365 days a year, you’ll need to be confident in your team’s ability to provide world-class service at all times.

You will set the standard for the business under your control if you are motivated and well-organized. You’ll need to be able to think creatively, inspire professionalism, and work well with a wide range of individuals, including your customers. Remember that getting their repeat business is critical to your success; it will be up to you and your staff to impress them with service, uniqueness, and innovation.

You contribute your talents, business approach, excitement, commitment, and passion for innovation as a self-employed retailer, while we provide the service stations, fuel, assistance, and a thorough retailer-training program. In a nutshell, we’ll collaborate to expand the company in an open and honest manner.

• You will be compensated based on your achievement of goals.
• Increase your revenue by expanding your firm and exceeding projected sales while keeping expenditures under control.
• Shell will decide the service station’s core product line and will own all stock.
• To run the service station, you will hire and manage your own employees.

Returns on investment

Your earnings will vary depending on the type and number of stations you operate, as well as their locations, but you can expect to earn between PKR 2,500,000 and PKR 3,500,000 per year in year one (for a single site), with the possibility of higher earnings if you exceed targets and keep costs under control.

We’ll need a bank guarantee as a kind of security. The amount depends on the features of the site/cluster and the findings of your credit assessment. In order to fund your business and purchase initial shares, you may need a working capital amount.

Supporting your success

At first, you’ll get supervised work experience and an on-the-job training program at a Shell service station that’s specifically suited to your needs. As you grow, we’ll tailor a series of training courses to help you improve your skills.

Still Have Questions? Please see the section below:

I’d like to start my own company, but I’m not sure if I have the necessary experience. What credentials do I require?

There are no formal requirements, although the ideal candidate will have at least a bachelor’s degree and/or five years of work experience. To succeed, you’ll need dedication, drive, business acumen, and a passion for invention. Working capital will be required, as well as security in the form of a bank guarantee.

You will be given supervised work experience as well as a series of training sessions that are specifically customized to your needs.

You will be required to offer financial security in the form of a PKR 1,000,000 bank guarantee due to the nature of the business. The amount of operating capital that may be required varies depending on the cluster/location site’s and size.

It’s anticipated that the selection process, business planning, and training course will take three to six months (depending on the location of service station or clusters).

Your revenues will vary depending on where you operate and how many service stations you have, but you may expect to earn between PKR 2,500,000 and PKR 3,500,000* each year in year one (for a single station), with the possibility of more if you meet your targets and keep your expenditures under control. Please keep in mind that all values are estimates.

Disclaimer: The earnings statistics listed above represent the estimated range for a single-station retailer. They are not guaranteed, and real revenues may differ depending on a variety of factors, including cluster size and site efficiency. If you are chosen to run a Cluster, the size of the Cluster will depend on the number of sites available.

How much money can you make at a petrol station in Pakistan?

“Your income will depend on the type and number of stations you run and their locations,” according to Shell Pakistan’s website, “but you can expect to earn between PKR 2,500,000 and PKR 3,500,000 per annum from year one (for a single site), with the possibility of additional earnings if you exceed.”

How do I start a gas station in Pakistan?

When considering the business viability and future profitability of a petrol pump station in Pakistan, there are various things to consider.

• The land and pumping stations are in the same location.
• Using the services of competent legal and financial counsel,
• Strive to provide the best services possible while utilizing the most cutting-edge technology available.

With the current market structure in mind, the most critical of these factors to give you the best chance of success is to provide the highest possible quality of service to your clients in order to achieve a competitive advantage.

• The country’s population is rapidly expanding, as is its per capita income and the sheer quantity of cars and other vehicles it presently has.
• During the winter, the low pressure of gas gives a diesel and petrol filling station a considerable advantage over a CNG station.
• Demand for all petroleum products is increasing, even in neighboring nations like Afghanistan.
• Because the demand for all petroleum products is elastic, it remains constant.
• The search for a variety of oil sources.

From a legal standpoint, this business entity’s proposed structure is that of a franchise with either a sole proprietorship or a joint proprietorship. While the entrepreneur’s choice affects this decision, the feasibility report is often based on the franchise having a single owner.

An entrepreneur must pay a joining fee as well as a security deposit in order to join an OMC as a dealer/retailer. The membership fee is typically around Rs.100,000, with a security deposit of around Rs.300,000 (these fees keep varying and changing over time).

The franchise fee is paid to the OMC on a regular basis. This price is normally between 0.10-0.15Rs per litre of petroleum delivered by the company. This is countered by the fact that the OMC is responsible for all equipment, machinery, and ongoing maintenance, which does not come out of the franchisee’s pocket.

On the same principle, other amenities such as the aforementioned car wash, tuck shop, and tyre shop can be constructed. The car wash and tyre shop fees are approximately 0.02-0.03 rupees per litre.

*These fee estimates are solely meant as a guideline and may vary depending on the terms of the franchisee’s agreement with the OMC. These projections are also altered throughout time.

The franchisee, like the OMC, receives a portion of the earnings from every litre of gasoline or diesel sold. OGRA, the Oil and Gas Regulatory Authority, decides and regulates this percentage. The percentage will normally remain constant, but the value will range between 0.85 and 1.50 rupees per litre of fuel and about the same for diesel.

The process of opening a fueling station entails a few key procedures that must be followed in order to meet the requirements of both the oil marketing corporation (OMC) and the government.

An oil marketing company receives a written application (expression of interest) from an entrepreneur interested in becoming a franchisee (OMC). The applicant requests that the OMC evaluate his property for the purpose of retailing petroleum and lubricant products.

Following the initial survey, OMC examines the applicant’s credibility (both social and financial) and talents, and then an expert from OMC conducts a feasibility assessment to determine the viability of the applicant’s land in relation to its location. After meeting the project’s feasibility criteria, OMC enters into a retailer ship agreement with the applicant and leases his land to him for a minimum of 15 years. The rent is a small amount determined by the land’s location.

Following the signing of the agreement, OMC’s architects create a plan for the site that depicts the projected structure of the site in accordance with national standards. The application, along with the map, is then forwarded to the district coordinator officer (DCO) in order to obtain no objection certificates from the relevant departments for this project. The DCO convenes a consultative meeting with representatives from the relevant departments to critically evaluate the project and communicate whether or not they have any issues. The DCO gives a no objection certificate for the required project based on the opinions of all representatives.

The explosives department is in charge of giving licenses for the storage and sale of explosive (petroleum) products. Finally, the OMC submits an application for a license to the Department of Explosives. The NOC and the sight map provided and approved by the DCO are included in the application.

After receiving authorization from the explosives department, development on the infrastructural structure will begin according to the approved map. The entrepreneur and the OMC split the cost of the infrastructure. The firm covers the entire cost of the machinery and equipment, while the entrepreneur is responsible for the civil work. Following completion, an OMC specialist engineer inspects the site. The OMC’s engineer issues a certificate of “safety and completion” to the sight that was built according to the regulations.

The explosives department’s inspector of explosives conducts a sight inspection as the last and last phase. The inspector conducts a thorough inspection of the site (particularly the gasoline storage tanks) in accordance with the explosives department’s predetermined rules before granting the franchisee (entrepreneur) permission to begin his operation.

Based on double-shift services, the station’s yearly sales capacity should be 2.85 million litters of gasoline and diesel. For financial projections, capacity utilization will be at 80% in the first year, then increase at a rate of 5% per year until it reaches 95%.

The overall land needed for the project would be 15,000 square feet, which would include a car wash, tire store, and office structure.

The Fueling Station should be located near a populated region, taking into account other important factors such as human resource availability, electricity, and water. For this aim, a site in the heart of the city would be ideal, ensuring that a healthy population surrounds the fueling station as well as the necessary infrastructure.

Are petrol station owners well-off?

Q. How much does a gas station owner make? In India, a fuel station owner can make up to Rs 3,58,000 per month. Your monthly gross earnings will be 5,70,000 Rupees if your commission is 3 Rupees per litre.

What is the profit in a gas station?

Is it profitable to own a gas station? A petrol station, as we all know, is open 24 hours a day, seven days a week, and you may easily make a profit of 2 to 2.5 rupees per litre on petrol and 1.80 to 2.40 rupees per litre on diesel. The monthly profit ranges from 1 to 2 lakh rupees.

In Pakistan, which small business is the most successful?

The following are the top ten small enterprises in Pakistan that can generate large profits:

• Agribusiness is a type of business that is based on agriculture.
• Establish a restaurant.
• Open up a coffee shop.
• E-commerce is a type of business where products are sold online.
• Agency for real estate.
• Services for digital marketing.

How do I go about starting a gas station?

Not only in India, but around the world, the petrol pump business has traditionally been regarded as one of the most profitable. This is largely due to the transportation and logistics sector’s ever-increasing growth and resulting demands. Another obvious cause is the rising demands of the average person’s daily commute. Furthermore, in today’s world, owning a vehicle is nearly a need for a middle-class individual to secure his comfort and convenience in day-to-day living.

As a result, starting your own fuel pump business is a viable alternative in today’s world. Despite the fact that it entails a significant amount of legal duties and paperwork, it is one of India’s most profitable enterprises. Furthermore, Oil Marketing Companies (OMCs) want to create more feasible prospects in order to support the growth of the petrol pump sector in India in 2020-2021.

The following is the procedure and formalities for opening a petrol pump business in India:

What is Pakistan’s most profitable business?

Pakistan’s economy is complicated. There are some booming businesses and some that are faltering due to government corruption, but there are still many fresh company ideas for Pakistanis to consider because the country has a large number of competent and talented workers. There is a business concept for you out there, from the footwear industry to supplying meals to the underprivileged, car parts manufacturing, and so on.

Many investors have large sums of money in their accounts, but they are unsure about which business to pursue. Such people frequently invest their money in less profitable company initiatives, and their investments generally fail to meet their expectations. There isn’t a single profitable enterprise in Pakistan. Pakistan’s business market is quite varied. Market trends change throughout time, resulting in new opportunities.

How much money does it take to open a gas station?

To open a petrol station, the applicant must be able to invest a minimum of Rs. 25 lakhs in standard gas stations and Rs. 12 lakhs in rural petrol stations.

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After all of the hullabaloo surrounding the increase in margins, how does the petrol pump business model even work?

If you’ve been to a petrol pump in Pakistan chances are that you’ve seen a lad working at the pump holding a large wad of cash. As a kid you probably thought that the guy is rich, as an adult you come to realize, the guy probably earns the equivalent of 5 litres of fuel (at current prices) in a day – basically peanuts. But this story isn’t about unfair wages, it has more to do with how fuel pumps earn money.

There are various components that help determine the price of fuel in the country. Dealership margins are the margins a dealer (a pump owner in this case) gets. These used to be in the form of percentages but have been fixed per liter.

The past week, thousands of Pakistanis were stuck in line at fuel pumps in hopes of getting fuel. They couldn’t because the petrol pumps were on strike. The only way one could get fuel was if they managed to find a company operated pump, which are a tiny fraction compared to dealer owned pumps. For an understanding of this, let’s take Karachi as an example where there are only 20 company operated (only PSO and Shell, Gas and Oil Pakistan Ltd (GO), Hascol Petroleum Ltd) pumps, whereas the approximate remaining 480 are dealer operated or belonging to companies that participated in the strike.

The Pakistan Petroleum Dealers Association (PPDA) had announced they would go on a strike from Thursday till an indefinite period to demand an increase in the margin on the sale of petroleum products.

Energy Minister Hammad Azhar reacted to the petrol strike, saying that the government will not accept “illegitimate demands” by certain petroleum dealers.

“The government will not hike prices of petroleum products by Rs9 per litre to appease a few companies,” he said.

Petrol pumps used to earn Rs3.91 per litre on petrol and Rs3.30 per litre on diesel. profit made by petrol pumps per litre was 2.75% which the Pakistan Petroleum Dealers Association (PPDA) had demanded be increased to 6%. If this demand was met, the profit made by pumps on petrol would be Rs8.75 per litre and Rs8.5 on diesel.

However, instead, the government negotiated with the dealers and they would now charge Rs 4.90 per liter on petrol. Essentially, an enhancement of 99 paisa in the existing margin of petrol and 83 paisa in the existing margin of high speed diesel.

In a statement, the Petroleum Division said, “The proposal for a 25pc increase in the margin of dealers will cover all delays in the revision of margin in the past and would also help dealers in mitigating the impact of inflation.”

In 2016 the ECC decided that margins will be revised annually by the amount of average CPI. Period for this average change in 2019, however the rule remained the same. Despite that, over the past five years, the margin was only revised four times for petrol and three times for diesel. There have been threats of strikes every time. The last revision in margins took place in April 2021 which was after a delay of 9 months for Petrol. The government, over the past few months has been delaying the revision stating that the PIDE study would be used as a gauge to revise margins. The study, however, is completed yet the government was still not keen to revise rates. In addition, if you link this to the fuel shortage of June 2020, the government’s relation witl fuel pumps isn’t that great to begin with. While inflation remains a concern and with rising fuel prices internationally the government feels compelled to make the fuel pump owners wait, the fact is, the government needed to be more prudent and deal with the situation better. 

The components of petrol price

The price of petrol has various components that combine together and are totaled to reach the ex-depot price, or the price the consumer sees at gas stations. 

The base price is the imported price, in the case of oil imports, or the ex-refinery price in the case of domestic oil production. On top of that, there are retailer and freight costs which include the inland freight equalisation margin, OMC profit margins (what PSO, Shell, etc. earn), and dealer commissions (what the petrol pump owners get to make). Lastly, comes the taxation which includes general sales tax and the petroleum development levy.

The ex-refinery price is the price at which refineries can sell their fuel to OMCs and the price at which importers can sell distillates within Pakistan. One of the first additions that happens to this initial pricing are the commissions that retailers and dealers receive.

The next significant addition is the Inland Freight Equalization Margin (IEFM), which is the cost of inland movement incurred by a refinery for the transportation of crude oil from the source to the refinery. It also includes the cost incurred by an OMC while transporting the finished product to various depots across the country. This basically includes all transport costs within the company.  

The purpose of this margin is to establish and maintain parity in the prices of fuel throughout the country. The money collected from this margin goes on to create a pool. The government then uses this money from the pool to provide indirect subsidies to Pakistanis to ensure the same price of fuel is found throughout the country.

Basically, if this subsidy did not exist, petrol prices would be cheaper in Karachi and more expensive in almost every other part of the country, and especially expensive in Gilgit-Baltistan and Balochistan.

After all of these pricing tools, we finally come to taxes, because the last two additions to the price the consumer sees at the gas station are the general sales tax (GST) and the petroleum development levy.

The GST, as of late, is set at 0% to pass relief on to consumers in light of rising fuel prices globally. However, in the past it was set at 17%. Keeping in mind that it is a ratio rather than an absolute number, it varies with a change in the price of petrol. The levy, on the other hand, is a surcharge and set as an absolute rupee amount per litre, though the government does vary how much it charges under this tax relatively frequently.

It is used as an instrument to bring about stability in the price of petrol by offsetting the impact of drastically changing import prices and costs associated with fuel. The levy, however, is often seen as a political and fiscal tool to either pass on ‘relief’ to consumers during an election year or to generate more revenue in other years. Previously, the levy was priced at Rs15 per litre but it has now been raised to Rs30 per litre.

This means that when the government wants to pass on relief to consumers it could keep a levy of zero rupees or some low number. Essentially, this means that after all the costs are added, the government could increase the price of fuel up to Rs30.

How do petrol pumps earn?

Petrol pumps can be company owned or dealer owned. Dealer owned petrol pumps are where an individual buys a “franchise” of a petrol pump, follows all legal procedures and sells fuel on behalf of an OMC. They earn through the dealership margin. Petrol pumps earn based on how much fuel they sell. Some pumps also earn on the sale of lubricants and other services such as tyre puncture stations, car wash and service area, stores, etc.

As per Shell Pakistan’s website, “Your income will depend on the type and number of stations you run and their locations, but you can look forward to potential earnings of between PKR 2,500,000 and PKR 3,500,000 per annum from year one (for a single site), with the opportunity for additional earnings if you exceed targets and control your costs.”

While these figures are not guaranteed, if you choose to open a fuel station, the company you sign with will provide the fuel and training. In return for your investment and the time you’re putting in to run the fuel station, you’ll get your margin and possibly a bonus or remuneration against meeting sales targets. While fuel prices do add to the inflation of a country, it is important to note that inflation and cost of doing business has also increased for pump owners.

yes i get an idea

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Legal Advice on Petrol Pump Contracts with Oil Marketing Companies

Due to the overwhelming amount of queries, we keep getting, we have set out a basic guide for setting up a petrol pump in Pakistan. If you wish to Open a Petrol Pump, t hen please DO NOT call us or contact us.

Instead please try to google the marketing companies like Shell, PSO, Attock Petroleum, etc for more information as they all have their own requirements. We will not give out numbers or contact representatives of Marketing Companies, as this is not what are able to do.

How can we help you then?

Once you are negotiating the contracts with the company and need help understanding your obligations or the benefits you may get from entering into a contract with an oil marketing company, we can step in and assist you.

There are several factors to consider when proposing to open a petrol pump station in Pakistan in terms of both commercial viability and future success.

• The location of the land and the pumps,
• Engaging the services of quality legal and financial teams,
• Endeavour to offer the best services and use the best technology currently available.

Keeping in mind the current structure of the market, the most important of these factors to give you the best chance of success is providing the best possible quality of service to your customers to gain a competitive edge.

General legal guidance on petrol pump contracts with oil marketing companies in Pakistan.

• Review the Contract: Before signing any contract with an oil marketing company, it’s crucial to carefully review and understand its terms and conditions. Pay special attention to clauses related to pricing, quantity, quality of fuel, duration, termination, and renewal.
• Negotiation: If possible, negotiate the terms of the contract to ensure they are fair and favorable to your interests as a petrol pump owner. Experienced legal counsel can help you in this process and ensure that your rights are protected.
• Compliance: Ensure that your petrol pump operations comply with all relevant laws and regulations governing the oil and gas sector in Pakistan. Your legal advisors can help you understand the legal requirements and assist in ensuring compliance.
• Termination and Renewal: Understand the conditions under which the contract can be terminated by either party and the process for contract renewal. Protect your interests by having clear provisions regarding these aspects in the contract.
• Dispute Resolution:Ensure to include a dispute resolution clause in the contract that outlines the process for resolving any disagreements or conflicts that may arise during the contractual relationship.
• Intellectual Property and Branding: If the oil marketing company provides you with branding and marketing materials, clarify the ownership and permitted use of such intellectual property in the contract.
• Health and Safety: Ensure that the contract includes provisions relating to health and safety standards for the petrol pump operations.
• Insurance: Discuss insurance coverage requirements with the oil marketing company to safeguard against potential risks and liabilities.
• Record Keeping: Establish a clear record-keeping system to maintain all necessary documents and records related to the contract and petrol pump operations.
• Seek Legal Assistance: Engage legal experts like Josh and Mak International to assist you throughout the contract negotiation and drafting process. They can help you understand the legal implications and ensure that your rights are adequately protected.

Petrol Pump Set Up in Pakistan

The Opportunities Available

• A population growing at a rapid rate, the income per capita and the sheer number of cars and other vehicles now in the country.
• The low pressure of gas gives you a diesel and petrol filling station a distinct advantage over a CNG station, especially during the winter.
• The increase in demand for all petroleum products even in bordering countries, especially Afghanistan.
• This demand for all petroleum products is elastic in nature, thus making it constant.
• The exploration for multiple oil sources.

The Legal Status of the Proposed Business and the Viability of Sharing

The proposed structure of this business entity, from a legal point of view, is that of a franchise with either solo or joint proprietorship. Whilst this selection is dependent upon what choice the entrepreneur makes, the feasibility report is typically based on the franchise having a single owner.

The Joining Fee and the Security Deposit

In order to be able to join an OMC as a dealer/retailer the entrepreneur is required to pay both a joining fee and a security deposit.

The Franchise Fee

The franchise fee is payable regularly to the OMC. This fee is paid on every litre of petroleum the company has supplied. This is set off however by the fact that all the equipment, machinery and subsequent maintenance is taken care of by the OMC and does not come out of the franchisee’s pocket.

Additional facilities such as the aforementioned car wash, tuck shop and tyre shop can also be installed on the same basis.

The Franchisees Profit Share

In the same manner as the OMC, the franchisee also gets a share of the profits on the sale of every litre of petrol or diesel. This percentage is both decided and the regulated by OGRA; the Oil and Gas Regulatory Authority. The percentage of this share will usually remain the same but the value can vary from between 0.85-1.50 rupees per litre of petrol and around the same for diesel.

The Licensing Process for the Franchise’s Retail Outlet

LICENSING PROCESS FOR RETAIL OUTLET (FRANCHISE)

The process of opening up a fuelling station includes few essential steps that need to be followed in order to full fill the criteria of oil marketing company (OMC) as well as the government.

Application

An entrepreneur interested in franchisee business submits a written application (expression of interest) to an oil marketing company (OMC). The applicant requests the OMC to asses the feasibility of his land for the purpose of retailer ship of their petroleum & lubricant products.

Feasibility Study

After Initial survey OMC scrutinizes the applicant on the bases of his credibility (both social and financial), & skills, and then a feasibility study is conducted by the OMC’s expert to measure the viability of applicant’s land with respect to its location. After fulfilling the feasibility criteria for the project the OMC signs a retailer ship agreement with the applicant and acquire his land on rental lease for the period of minimum 15 years. The rent is just a nominal amount based on the location of the land.

No Objection Certificates (NOCs)

After signing the agreement the OMC’s architects draw a map for the sight representing the anticipated structure of the sight as per the national standards. The application is then submitted to the district coordinator officer (DCO) along with the map in order to acquire a no objection certificates from the concerned departments for this project. The DCO calls a consultative meeting including the representatives of the concerned departments to critically analyze the project and share if they have some objections or not regarding the project. With the view of all the representatives regarding the project the DCO issues a no objection certificate for the prescribed project.

License of Explosives

The explosives department is a supreme authority for issuing a license to store or sale the explosive (petroleum) items. The OMC finally submits the application to the department of explosives for the grant of license. The application includes NOC and the sight map issued and approved by the DCO respectively.

Construction phase

After the permission of explosives department the infra structure construction is to be started according to the approved map. The cost of infra structure is shared between the entrepreneur and the OMC. The company totally pays for the machinery and equipment and the civil work is the responsibility of entrepreneur. After the completion, the sight is inspected by an expert engineer of OMC. The sight constructed according to the standards qualifies for the certificate of “safety and completion” issued by the OMC’s engineer.

Grant of License

The last and final step is the sight inspection by the inspector of explosives from the explosives department. The inspector critically inspects the site (specially the fuel storage tanks) according to the pre defined rules of explosives department and grants the license to the franchisee (entrepreneur) to start his business.

Suitable Locations

The Fuelling Station is recommended to be installed next to the populated area while considering other mandatory inputs i.e. availability of human resource, electricity and water etc. for the purpose, a location in the main city would be feasible to make sure a healthy number of populations is around the fuelling station along with the compulsory infra structure.

By The Josh and Mak Team

Josh and Mak International is a distinguished law firm with a rich legacy that sets us apart in the legal profession. With years of experience and expertise, we have earned a reputation as a trusted and reputable name in the field. Our firm is built on the pillars of professionalism, integrity, and an unwavering commitment to providing excellent legal services. We have a profound understanding of the law and its complexities, enabling us to deliver tailored legal solutions to meet the unique needs of each client. As a virtual law firm, we offer affordable, high-quality legal advice delivered with the same dedication and work ethic as traditional firms. Choose Josh and Mak International as your legal partner and gain an unfair strategic advantage over your competitors.

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Petrol Pump Business plan

The petrol pump industry presents a lucrative opportunity within the energy sector. However, establishing a petrol pump business necessitates meticulous planning, substantial investment, and strict compliance with regulatory protocols.

In this all-inclusive guide, we will guide you through the intricacies of launching and operating a prosperous petrol pump enterprise, encompassing critical facets such as expenses, permits, financial backing, and more.

Why Invest in a Petrol Pump Business?

Investing in a petrol pump business is a strategic and potentially lucrative venture for those looking to enter the energy sector. The demand for fuel remains steadfast globally, making the petrol pump industry a resilient and profitable one.

1. Steady Demand for Fuel

One of the primary reasons to consider investing in a petrol pump business is the constant and robust demand for fuel. Vehicles, whether they run on gasoline (petrol) or diesel, continue to be the primary mode of transportation for millions worldwide. As a result, the need for petrol pumps remains evergreen, making it a recession-resistant industry.

2. Profitable Margins

Petrol pump businesses typically offer reasonable profit margins. While the margins may vary due to factors like location, competition, and pricing strategies, petrol pump owners can often maintain a steady income stream. The ability to set competitive fuel prices, coupled with additional revenue streams like convenience stores or car washes, further enhances profitability.

3. Versatile Business Model  

Investors in the petrol pump business can choose from various business models. You can either open an independent petrol pump or opt for a franchise arrangement with an established oil company like Indian Oil, Bharat Petroleum, or Hindustan Petroleum. Each model has its unique advantages, allowing you to tailor your investment to your preferences and resources. 

4. High Initial Investment

While the potential returns in the petrol pump business are substantial, it’s essential to acknowledge the high initial investment required. Opening a petrol pump involves expenses such as land acquisition or lease, construction, machinery, working capital, and regulatory compliance. This is where business financing comes into play.

5. Financing Options

To cover the substantial costs associated with opening a petrol pump, entrepreneurs have access to several financing options: 

Business Loans: Banks and financial institutions offer business loan tailored to the needs of petrol pump owners. These loans can help cover expenses like land acquisition, construction, and equipment purchases. 

Working Capital Loans: Operating a petrol pump requires working capital to manage day-to-day expenses such as fuel purchases, staff salaries, and maintenance. Working capital loans provide the necessary funds to keep your business running smoothly.

Business Loans Without Collateral: Traditional business loans often require collateral. However, many financial institutions now offer collateral-free business loans , which can be beneficial for those who may not have significant assets to pledge.

Line of Credit: A line of credit offers flexibility by allowing you to borrow funds as needed, up to a predetermined limit. It’s a valuable resource for managing fluctuations in working capital and unexpected expenses. 

6. Interest Rates for Business Loans

When considering financing for your petrol pump investment, it’s essential to assess the interest rates associated with business loans. Interest rates can significantly impact the overall cost of borrowing and your ability to generate a profit. The interest rate for a business loan may vary depending on the lender, your creditworthiness, and the prevailing market conditions.

7. Assessing Eligibility for Business Loan

Before applying for a business loan, it’s crucial to understand the eligibility criteria set by the lender. Lenders typically consider factors such as your credit score, business plan, financial stability, and collateral (if required). Meeting these criteria can enhance your chances of securing a loan with favourable terms.

8. Machinery Loan

A machinery loan is designed to help you finance the purchase of essential equipment for your petrol pump. This type of loan can cover the costs associated with fuel dispensers, storage tanks, and other machinery required for your business’s operation. By securing a machinery loan , you can reduce the initial financial burden and manage your cash flow more efficiently.

9. Quick Business Loans

Applying for business loans online can be a convenient and swift process. Online business loan applications allow you to submit your documents and receive approvals faster, ensuring that you can kickstart your petrol pump business sooner. 

Now that we understand the basics, let’s delve into the specifics of starting and running a petrol pump business.

Market Research and Location Selection

Identifying a suitable location.

The location of your petrol pump is a critical factor in determining its success. Consider the following when selecting a location:

High Traffic Area : Choose a spot with significant vehicle traffic, preferably on a busy road or near highways.

Accessibility : Ensure easy access for vehicles entering and exiting the station.

Proximity to Residential Areas : Being close to residential areas can attract regular customers.

Competitor Analysis : Research nearby petrol pumps and their pricing strategies.

Analyzing Competitors: Study the competition in your chosen area to understand their strengths and weaknesses. This analysis can help you differentiate your petrol pump and develop a competitive advantage.

Demographics and Customer Base

Consider the demographics of the area, including income levels, vehicle ownership rates, and commuting patterns. Understanding your potential customer base will help you tailor your offerings and marketing strategies accordingly.

Legal Requirements and Licensing

Obtaining the necessary licenses.

Running a petrol pump business requires several licenses and permits, including:

Petroleum Storage License: Obtained from the Petroleum and Explosives Safety Organization (PESO).

Trade License: Issued by the local municipal authority.

Environmental Clearances: Ensure compliance with environmental regulations and obtain necessary clearances.

Fire Safety Certificate: Comply with fire safety standards and obtain a certificate.

Consult with legal experts or regulatory authorities to have an estimate for petrol pump license cost and to ensure you have all the required permits in place before opening your petrol pump business.

Cost Analysis

Petrol pump opening cost.

The cost of opening a petrol pump can vary significantly based on location, infrastructure, and other factors. Generally, you will need to budget for the following:

Land Acquisition or Lease: The cost of acquiring land or leasing it for your petrol pump station.

Construction and Infrastructure: Building the station, including fuel storage tanks, dispensers, and convenience store (if applicable).

Machinery and Equipment: Purchase of fuel dispensing equipment, pumps, tanks, and safety measures. You can easily apply and avail of a machinery loan from FlexiLoans.

Working Capital: Funds required for day-to-day operations, including fuel purchases.

Reserve Fund: A contingency fund for unexpected expenses or emergencies.

Financing Your Petrol Pump Business

Business loans and financing options.

Financing your petrol pump business can be achieved through various means:

Business Loans : Banks and financial institutions offer business loans tailored to the needs of petrol pump owners. FlexiLoans offers business loans online.

Government Schemes: Explore government schemes and subsidies that support entrepreneurs in the fuel retail sector. FlexiLoans offers business loans for women at attractive interest rates.

Loan Application Process: Understand the application process, eligibility criteria, and documentation required for business loans. Check the estimated business loan interest amount with the business loan EMI calculator .

Business Plan and Structure

Creating a comprehensive business plan.

A well-structured business plan is essential for securing financing and guiding your business. Key components of your business plan include:

Executive Summary : A concise overview of your business and its goals.

Market Analysis : Detailed research on the fuel market and your competitors.

Financial Projections : Projections of income, expenses, and profitability.

Marketing Strategy : Plans for branding, advertising, and customer acquisition.

Operational Details : Information on staffing, inventory management, and daily operations.

Fuel Supply and Dealership

Securing a fuel supply.

Establish a reliable source of fuel supply, often through tie-ups with oil companies like Indian Oil, Bharat Petroleum, or Hindustan Petroleum. This ensures a steady and quality fuel supply for your station.

Petrol Pump Dealership Cost

The cost of securing a dealership from an oil company varies and can include security deposits and infrastructure requirements. Carefully review the terms and conditions before agreeing.

Franchise vs. Independent Operation

You can choose to operate as an independent petrol pump or opt for a petrol pump franchise arrangement with an oil company. Each option has its benefits and drawbacks, so consider your business goals and resources when making this decision.

Infrastructure and Machinery

Building a modern petrol pump station.

Invest in modern and aesthetically pleasing infrastructure to attract customers. The layout should be well-organized for smooth vehicle flow and customer convenience.

Machinery and Equipment Required

Essential equipment for a petrol pump includes fuel dispensers, underground storage tanks, safety measures, and electronic systems for billing and inventory management. FlexiLoan offers a machinery loan at reasonable interest rates.

Maintenance and Safety Measures

Regular maintenance of equipment and safety protocols is crucial to ensure smooth operations and minimize risks associated with fuel handling.

Marketing and Promotion

Branding and signage.

Create an appealing brand identity with eye-catching signage. Your branding should reflect trustworthiness and safety, as customers prioritize these factors when choosing a petrol pump.

Advertising Strategies

Utilize various marketing channels such as social media, local advertising, and loyalty programs to attract and retain customers. Highlight any unique offerings, such as a car wash or convenience store.

Operational Considerations

Staffing and training.

Hire and train staff who are knowledgeable about fuel dispensing, safety procedures, and customer service. Friendly and efficient service can build customer loyalty.

Inventory Management

Implement robust inventory management systems to monitor fuel levels and restock efficiently. Prevent fuel shortages to maintain customer satisfaction. You can always avail working capital loan from FlexiLoans.

Accounting and Record-keeping

Maintain accurate financial records, including sales, expenses, and taxes. Consider using accounting software to streamline your financial processes.

Financial Projections

Estimating income and expenses.

Develop realistic financial projections that take into account your income from fuel sales, convenience store (if applicable), and other revenue streams, as well as operating expenses such as staff salaries, maintenance, and utilities.

Projected Profit Margin

Calculate your projected profit margin based on your business plan and financial projections. This will help you set pricing strategies and assess the profitability of your petrol pump.

Break-Even Analysis

Determine the point at which your petrol pump business will break even, covering all initial investments. This is a crucial milestone in your financial planning.

Risk Management and Insurance

Identifying potential risks.

Assess potential risks in the petrol pump business, including fire hazards, fuel theft, environmental liabilities, and accidents.

Choosing the Right Insurance Policies

Consult with insurance experts to select appropriate insurance coverage, including general liability, property insurance, and environmental pollution coverage.

Environmental Responsibility

Sustainable practices.

Implement environmentally responsible practices such as proper waste disposal, fuel spill prevention, and energy-efficient equipment.

Pollution Control Measures

Adhere to pollution control regulations and regularly inspect your petrol pump for compliance. Report any leaks or spills promptly.

To establish a petrol pump business, you need to consider several factors, including the associated opening costs and crafting a robust business plan. MSME loan without collateral and small business loan can provide financial support for entrepreneurs.

Q1. How do I obtain a license for a petrol station?

Ans: State authorities may obtain a license to own and operate a petrol station depending on the location of the station, with permission from the state’s municipal corporation department, NOCs, and a copy of the location’s certificate.

Q2. What is the bare minimum needed to launch a petrol pump business?

Ans: According to the location of the retail outlet, a petrol pump startup requires a minimum investment of Rs. 15 lakh and a maximum investment that may exceed Rs. 35 lakh.

Q3. What is the commission for petrol station dealers?

Ans: The commission for petrol station dealerships varies depending on the agency and the location. However, the general commission varies from Rs. 2 to Rs. 5 per liter, and tax, commission, and duty account for nearly half of the cost of petrol per liter.

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Growth from the Petrol Pump Business in Pakistan

Most Pakistani petrol pumps have workers holding a bundle of cash. The tale isn’t about unfair wages but how fuel pumps earn money.

Several factors influence the price of fuel in the country. The earnings received by a dealer are known as merchant margins (or pump margins in this context). Previously, percentages were utilized, but now they are fixed per liter.

What Is the Income From Petrol Pump Businesses in Pakistan ?

Pakistanis have been queuing for fuel at petrol stations for the past week. They couldn’t fill up since the pumps were on strike. A company-owned pump was the sole means to receive Petrol; there were only a few dealer-owned pumps. In Karachi, for example, only 20 pumps are operated by the firm. Dealers or strikes manage the rest. 

The Pakistan Petroleum Dealers Association (PPDA) has declared a strike to demand a more significant margin on petroleum product sales, which will begin on Thursday and last indefinitely.

Due to the petrol strike, the government, according to the minister, will not accept specific petroleum merchants’ “illegitimate demands.”

“The government would not hike petroleum prices by Rs9 per liter just to appease a few corporations,” he remarked.

Let’s Talk About Some Factual Stats Related to Petroleum

Petrol cost Rs3.91 per liter at petrol stations, while diesel cost Rs3.30. Petrol stations earned 2.75% per liter, which the Pakistan Petroleum Dealers Association (PPDA) recommended be increased to 6%. If this demand is reached, petrol pumps will get Rs8.75 per liter, and diesel pumps will earn Rs8.5 per liter.

Petrol will now be charged at Rs 4.90 per liter due to the government’s discussions with merchants. This amounts to an increase in fuel margin of 99 paisas and high-speed diesel margin. 

“The proposal for a 25pc increase in the margin will cover all delays in margin revisions in the past and alleviate the impact of inflation on dealers,” said the Petroleum Division.

The ECC resolved in 2016 that margins would be revised yearly by an average CPI Consumer Price Index portion. In 2019, the regulation remained the same for this average change. Over the last five years, the margin has only been altered four times for Petrol and three times for diesel.

Every time, strike action has been threatened. Petrol’s most recent margin revision occurred in April 2021, 9 months after the last revision. For the last few months, the administration has been delaying the adjustment by saying that the PIDE report would be used to revise margins. Even though the study is complete, the government has yet to be willing to alter rates. Aside from that, given the impending fuel crisis in June 2020, the government’s relationship with petrol pumps might be more beneficial. Although inflation remains a problem, and fuel prices are growing globally, the government believes it must respond responsibly and appropriately.

Components of Petrol Prices

• Ex-depot pricing at stations is calculated by combining the components of the Petrol price. Depending on whether the oil is imported or produced domestically, the base price is either the import price or the ex-refinery price. Then there are retailer and freight costs and inland freight equalization margins. OMC profit margins (the money earned by company-owned pumps) and dealer commissions (what petrol pump owners make). The process concludes with taxes, which include the regular sales tax and the petroleum development levy.
• The cost of delivering crude oil from the source to the refinery is the next substantial contribution to a refinery’s inland freight equalization margin (IEFM). Transporting the finished product to other depots is also included in the cost. This category contains internal transportation expenditures.
• A refinery’s inland freight equalization margin (IEFM), the cost of transporting crude oil from the source to the refinery, is the next significant addition. The cost of transporting the finished product to various depots is also included. Transport costs within the company are included in this category.
• Prices increase in Petrol throughout the country are managed through this margin. A massive pile of money is collected from this margin. The government uses this money to provide indirect subsidies to Pakistanis to ensure that fuel prices are the same all over Pakistan.
• Petrol prices in Karachi would be lower without this subsidy. At the same time, they would be higher in almost every other part of the country, including Balochistan and Gilgit-Baltistan.

Depots By JPPL in Pakistan

JINN Petroleum has settled two depots to fulfill the basic petroleum requirements. One is located in Sahiwal, Punjab, and the other in Hub, Balochistan.

Petroleum Retail Network

Retail marketing is a core focus of the company. This segment operates as both the volume and profit driver of the business and acts as the growth engine for the company.

The main focus is on the development of a strong retail segment that focuses on developing petrol pumps at key locations and adding valued business partners. The journey has already started with establishing a retail network in different provinces and parts of Pakistan.

GSTs & Petroleum Industry

We finally come to taxes because the general sales tax (GST) and the petroleum development levy are added to the Petrol station price after all these tools.

After these instruments, the general sales tax (GST) and the petroleum development levy are applied to the petrol station pricing.

The GST is fixed at 0% to alleviate growing fuel prices. It was previously set at 17%. Because it’s a ratio, it fluctuates with the cost of gasoline—the government levies a duty based on a rupee value per liter. Nonetheless, the premium is fixed per liter.

It is intended to counteract increases in import prices and fuel expenses to stabilize petroleum prices. During an election year, however, the levy is often used to alleviate customers or produce additional revenue. The one-time fee of Rs15 per liter has now been increased to Rs30 per liter.

When it wants to ease customers, the government could maintain a fee of zero rupees or a low number. As a result, if all expenditures are considered, the government may raise fuel prices to Rs30.

The government could keep a levy of zero rupees or a low number when it wants to relieve consumers. Therefore, the government could increase fuel prices to Rs30 after all the costs are added.

Petrol Pumps and its types

There are two kinds of petrol stations: company-owned and dealer-owned. A dealer-owned petrol pump is created when an individual obtains a “franchise” of a petrol pump, completes all legal processes, and sells fuel for an OMC. Dealership margins allow them to profit.

How much a pump earns is determined by the amount of fuel sold. Pumps also make money by selling lubricants and providing other services, including tire puncture stations, car wash facilities, and stores.

Did You Know How Petrol Pumps Earn?

Your earnings are determined by the type and quantity of stations you operate and their location. Still, you can expect a potential annual income of PKR 2,500,000 to PKR 3,500,000 (for a single site) from year one, with the prospect of other revenues if you exceed expectations.” JINN petroleum makes petrol pump investment in Pakistan much easy.

While these figures are not guaranteed, the firm you contract with will supply fuel and training if you create a fuel station. In exchange for your investment and time, you will earn your margin and maybe a bonus or remuneration if you exceed sales targets. Even though fuel prices contribute to inflation, inflation and the cost of doing business have increased for pump owners.

Conclusion: 

If you are looking to invest in petrol pumps, JPPL is the safest choice to invest in. Together, let’s make a well-developed economy.

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Start a Petrol Pump Business in 9 Steps: Your Ultimate Checklist!

By henry sheykin, resources on petrol pump.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Introduction

Welcome to our comprehensive guide on how to start your own petrol pump business. With the ever-increasing demand for petroleum products, the petrol pump industry continues to thrive and offers a lucrative business opportunity for aspiring entrepreneurs.

According to the latest statistics, the global petroleum market is projected to reach $2.5 trillion by 2025 , with a compound annual growth rate (CAGR) of 3.3% from 2020 to 2025 . In the United States alone, the petrol pump industry contributes significantly to the nation's economy, with an estimated 122,139 fuel stations operating across the country.

By following this nine-step checklist, you can navigate the process of opening and managing a successful petrol pump business. Let's dive in and explore the necessary steps to transform your entrepreneurial dreams into a profitable reality.

9 Steps to Start a Petrol Pump Business: Checklist

Before launching a petrol pump business, there are several crucial steps you need to take to ensure a successful venture. By following this checklist, you can lay the groundwork for a thriving petrol pump business.

Conduct Market Research And Feasibility Study

Before venturing into the petrol pump business, it is crucial to conduct a thorough market research and feasibility study. This step is vital in determining the viability and potential profitability of your venture.

Market research involves gathering information about the petroleum industry, analyzing competitor petrol stations in your target area, understanding consumer demand and preferences, and identifying potential market gaps or opportunities. This valuable data will help you make informed decisions and develop effective strategies to stay ahead of the competition.

Feasibility study assesses the overall feasibility of your petrol pump business. It involves analyzing various factors such as the location of the petrol station, potential customer base, operating costs, revenue projections, and potential obstacles or challenges. This study will provide valuable insights into the financial viability and sustainability of your business.

Tips for conducting market research and feasibility study:

• Engage with industry experts, consultants, or advisors who can provide valuable insights and guidance throughout the research process.
• Utilize primary and secondary research methods, such as surveys, interviews, and market reports, to gather relevant data and analyze market trends.
• Assess the demographics and purchasing power of the target market to determine the potential demand for petroleum products.
• Evaluate the location options for your petrol pump business, considering factors such as proximity to major roads, residential areas, commercial hubs, and competition.
• Analyze the financial aspects, including capital investment requirements, operating costs, potential revenue streams, and return on investment.

Conducting a market research and feasibility study will provide you with a solid foundation for success in the petrol pump business. It will help you identify opportunities, understand the market dynamics, and make informed decisions that contribute to the long-term profitability of your venture.

Develop A Comprehensive Business Plan

Developing a comprehensive business plan is essential for starting a successful petrol pump business. This plan will serve as a roadmap for your venture, outlining your goals, strategies, and financial projections.

• Define your vision and goals: Clearly define your vision for the petrol pump business and set specific goals that you want to achieve. This will help you stay focused and motivated throughout the process.
• Analyze the market: Conduct thorough market research to understand the demand for petroleum products in your target area. Analyze the competition, customer preferences, and market trends to identify opportunities and potential challenges.
• Assess the financial aspects: Determine the estimated costs involved in setting up and running the petrol pump business. Consider expenses like land acquisition, infrastructure development, personnel salaries, and marketing activities. Also, calculate the expected revenue and profitability based on projected sales volumes and pricing.
• Outline marketing and branding strategies: Develop a marketing plan that outlines how you will attract customers and build brand awareness. Identify the key marketing channels, such as social media, local advertising, and partnerships, that will help you reach your target audience effectively.
• Consider operational requirements: Determine the daily operations and maintenance activities required to run the petrol pump smoothly. This includes managing inventory, ensuring compliance with regulations, and providing excellent customer service.

Research and gather information:

Seek professional guidance:, regularly update your business plan:.

A comprehensive business plan not only helps you secure funding but also provides a clear direction and framework for your petrol pump business. It acts as a reference point for decision-making and serves as a tool for monitoring and evaluating your progress.

Determine The Funding Requirements And Secure Necessary Capital

Before starting a petrol pump business, it is essential to determine the funding requirements and secure the necessary capital to cover the initial investment and operational expenses. Here are some steps to help you in this process:

• Assess the startup costs: Calculate the expenses involved in acquiring land, building infrastructure, purchasing equipment, securing permits, and hiring personnel. Consider additional costs such as branding and marketing.
• Research financing options: Explore various sources of funding, including personal savings, loans from financial institutions, government grants, and partnerships. Evaluate the pros and cons of each option.
• Create a detailed budget: Develop a comprehensive financial plan that outlines all the expenses and projected revenues for at least the first year of operation. This will help you understand your funding requirements.
• Seek professional advice: Consult with accountants, financial advisors, or business experts to gain insights into the financial aspects of starting a petrol pump business. They can help you identify potential funding gaps and suggest suitable solutions.
• Prepare a compelling business pitch: When approaching potential investors or lenders, create a persuasive and well-structured business plan that highlights the profitability and growth potential of the petrol pump business. Clearly state the funding requirements and how the investment will be utilized.
• Consider exploring partnerships with existing petrol pump owners or industry experts who may be interested in investing capital.
• Research local government programs or incentives that support the establishment of petrol pump businesses. They may provide financial assistance or favorable loan terms.
• Be prepared to provide collateral or personal guarantees when seeking funding from banks or financial institutions.
• Engage in thorough financial planning and regularly monitor your finances to ensure adequate capital for day-to-day operations and unforeseen expenses.

By determining the funding requirements and securing necessary capital, you will be better equipped to embark on the journey of starting a successful petrol pump business.

Identify Potential Oil Suppliers And Negotiate A Revenue-Sharing Partnership

When starting a petrol pump business, it is crucial to identify potential oil suppliers and negotiate a revenue-sharing partnership. This step is essential for securing a reliable source of petroleum products and ensuring the profitability of your venture.

Here are some key points to consider during this process:

• Research: Conduct thorough research to identify reputable oil suppliers in your region. Consider their reputation, product quality, and track record in the industry.
• Contact: Reach out to potential oil suppliers to express your interest in establishing a revenue-sharing partnership. Request detailed information about their products, pricing, delivery schedules, and any additional services they offer.
• Evaluate: Evaluate each oil supplier based on their offerings, suitability for your business model, and compatibility with your goals and values. Look for suppliers who can provide competitive pricing, timely delivery, and reliable inventory management.
• Negotiate: Initiate negotiations with selected oil suppliers to establish the terms of the revenue-sharing partnership. Discuss profit-sharing percentages, contractual obligations, payment terms, and any support or assistance they can provide in terms of branding, marketing, or operational guidance.
• Review: Carefully review the proposed partnership agreements, considering both the short-term benefits and long-term implications. Seek legal advice if necessary and ensure that all terms and conditions align with your business objectives.
• Formalize: Once satisfied with the negotiated terms, formalize the partnership by signing a written agreement that outlines the roles, responsibilities, and expectations of both parties. This will provide a solid foundation for a successful and mutually beneficial partnership.

Identifying potential oil suppliers and negotiating a revenue-sharing partnership is a critical step in launching your petrol pump business. Taking the time to carefully evaluate and select the right partner will contribute to the overall success and profitability of your venture.

Secure All Necessary Permits And Licenses

Before starting your petrol pump business, it is crucial to secure all the necessary permits and licenses to ensure compliance with local, state, and federal regulations. This step is essential as it establishes legal permission for your business operations and helps you avoid any potential legal issues in the future.

To secure the required permits and licenses, consider following these steps:

• Research local regulations: Begin by researching the specific permits and licenses required in your area. Contact the local government agencies, such as the zoning department or the department of environmental protection, to understand the specific requirements for operating a petrol pump business.
• Compile necessary documentation: Prepare the required documents such as proof of land ownership, lease agreements, environmental impact assessments, and other relevant paperwork. Make sure to gather all the necessary documentation to streamline the permit application process.
• Submit permit applications: Complete the necessary application forms and submit them to the appropriate regulatory bodies. Follow the guidelines provided by each agency and ensure that your application is accurate and complete to enhance the chances of approval.
• Pay applicable fees: In many cases, there may be fees associated with permit applications. Be prepared to pay the required fees when submitting your applications.
• Stay updated and follow up: Keep track of the progress of your permit applications and follow up regularly with the relevant agencies. This proactive approach will help ensure that your applications are processed efficiently and any potential issues are addressed in a timely manner.

Tips for securing permits and licenses:

• Start the permit application process early to avoid delays in launching your petrol pump business.
• Seek assistance from professionals, such as lawyers or consultants, who specialize in navigating the regulatory landscape.
• Ensure that you comply with all applicable health, safety, and environmental regulations to maintain a safe and sustainable operation.
• Document and keep copies of all communication and paperwork related to your permit applications for future reference.

Acquire Suitable Land And Secure Necessary Infrastructure

One of the crucial steps in starting a petrol pump business is acquiring suitable land and securing the necessary infrastructure. Here are some important considerations:

• Location: Choose a location that is easily accessible, preferably along a major road or highway, to attract a steady flow of customers.
• Zoning and Permits: Ensure that the chosen land is zoned for a petrol station and obtain all the required permits and licenses from the relevant local authorities.
• Size and Layout: Assess the space requirements based on the size of the petrol station, pump islands, convenience store, and other amenities. Plan the layout to optimize traffic flow and accommodate future growth.
• Environmental Considerations: Conduct an environmental impact assessment to ensure compliance with regulations and minimize any adverse effects on the surrounding area.
• Infrastructure: Ensure the availability of necessary utilities such as electricity, water, and sewage. Install fuel tanks, pumps, ventilation systems, safety measures, and other infrastructure as per the regulatory requirements.
• Consider partnering with a professional real estate agent who specializes in commercial properties to help you find the most suitable land for your petrol pump business.
• Engage with experienced contractors and suppliers who have expertise in constructing petrol stations and can ensure compliance with safety standards and regulations.
• Explore opportunities for cost savings through renewable energy sources or energy-efficient infrastructure.

Hire And Train Personnel For Daily Operations And Customer Service

One of the key factors for a successful petrol pump business is having a dedicated and well-trained team to handle the daily operations and provide excellent customer service. Here are some important steps to follow when hiring and training personnel for your petrol pump:

• Define job roles and responsibilities: Clearly outline the different job roles required, such as pump attendants, cashiers, maintenance staff, and supervisors. Determine specific responsibilities for each role to ensure efficient operations.
• Recruit experienced and reliable individuals: Seek candidates with previous experience in the petrol industry or relevant customer service roles. Look for individuals who are dependable and have a strong work ethic.
• Conduct thorough interviews: During the interview process, ask candidates about their experience, problem-solving skills, and ability to handle stressful situations. Assess their communication skills and customer service mindset.
• Provide comprehensive training: Develop a training program that covers all aspects of daily operations, including safety protocols, product knowledge, cash handling procedures, and customer service techniques. Conduct hands-on training sessions to ensure employees are well-equipped to handle various tasks.
• Emphasize professionalism and customer-centric approach: Train employees to prioritize customer satisfaction and maintain a professional demeanor at all times. Teach them effective communication and conflict resolution skills to address customer concerns and maintain a friendly and welcoming atmosphere.

Tips for hiring and training personnel:

• Offer competitive salaries and benefits to attract and retain top talent.
• Implement a performance evaluation system to regularly assess and reward employee performance.
• Invest in ongoing training and development programs to keep employees updated and motivated.
• Encourage teamwork and foster a positive work environment to boost employee morale.
• Regularly communicate with employees to address any concerns and gather feedback for continuous improvement.

By hiring and training capable personnel, you can ensure efficient daily operations, maintain a high level of customer service, and establish a positive reputation for your petrol pump business.

Develop Branding And Marketing Strategies In Collaboration With The Oil Supplier

Developing effective branding and marketing strategies is essential for the success of your petrol pump business. By collaborating with your oil supplier, you can harness their expertise and resources to create a compelling brand identity and reach your target audience more effectively.

Here are some important steps to consider when developing branding and marketing strategies in collaboration with your oil supplier:

• Understand your target market: Carry out market research and identify the demographics, preferences, and needs of your potential customers. This will help you tailor your branding and marketing efforts to attract and retain your target audience.
• Create a strong brand identity: Work closely with your oil supplier to develop a unique and memorable brand identity that aligns with your business values and resonates with your target market. This includes designing a logo, selecting color schemes, and creating a consistent visual identity across all marketing materials.
• Utilize digital marketing: Leverage the power of digital platforms to reach a wider audience. Collaborate with your oil supplier to develop a comprehensive online presence, including a user-friendly website, social media profiles, and email marketing campaigns.
• Regularly update your website and social media platforms with engaging content, such as promotions, information about your petrol pump, and tips for maintaining vehicles.
• Utilize search engine optimization (SEO) techniques to improve your online visibility and attract more potential customers.
• Consider partnering with local businesses and organizations to host community events or sponsor relevant causes, creating brand visibility and goodwill.
• Implement effective advertising strategies: Collaborate with your oil supplier to determine the most suitable advertising channels to promote your petrol pump. This may include traditional methods like newspaper advertisements, billboards, and radio spots, as well as targeted online advertising.
• Monitor and analyze marketing effectiveness: Regularly track the performance of your branding and marketing initiatives to identify what strategies are working and what needs adjustment. Work closely with your oil supplier to analyze data and make data-driven decisions to optimize your marketing efforts.

Developing branding and marketing strategies in collaboration with your oil supplier allows you to leverage their expertise and resources to create a powerful and consistent brand presence while effectively reaching your target audience. By implementing these strategies, you can increase the visibility and profitability of your petrol pump business.

Implement A Financial Model To Track Profitability And Optimize Supply Chain Efficiency

Implementing a financial model to track profitability and optimize supply chain efficiency is essential for the success of your petrol pump business. This will allow you to effectively manage costs, analyze revenues, and make informed decisions to improve your operations. Here are some key steps to consider:

• 1. Identify Key Performance Indicators (KPIs): Determine the KPIs that are most relevant to your petrol pump business, such as fuel sales volume, average transaction value, and gross profit margin. Tracking these metrics will provide valuable insights into the financial health of your business.
• 2. Use Accounting Software: Invest in a reliable accounting software that can help you manage your financial data effectively. This will enable you to track expenses, monitor revenue streams, and generate accurate financial reports. Make sure to choose a software that suits the specific needs of your petrol pump business.
• 3. Regularly Analyze Financial Statements: Review your financial statements, such as profit and loss statements, balance sheets, and cash flow statements, on a regular basis. This will give you a clear understanding of your revenue streams, expenses, and overall profitability. Identify any areas for improvement and take necessary actions.
• 4. Optimize Supply Chain Efficiency: Assess your supply chain processes to identify any inefficiencies or bottlenecks. Streamline your inventory management, supplier relationships, and distribution channels to ensure a smooth and cost-effective flow of petroleum products. This will help you reduce costs and improve overall supply chain efficiency.
• 5. Implement Cost Control Measures: Identify and monitor your major cost drivers, such as labor, utilities, and maintenance. Look for opportunities to minimize expenses without compromising the quality of your services. Implement efficient cost control measures to optimize your profit margins.
• Regularly update and fine-tune your financial model to reflect the changing dynamics of your business and the industry.
• Consider seeking the expertise of a financial consultant or accountant to ensure accurate financial analysis and decision-making.
• Use forecasting techniques to project future revenue streams and anticipate potential supply chain challenges.
• Continuously monitor and evaluate the performance of your revenue-sharing partnership with the oil supplier to maintain a mutually beneficial relationship.

By implementing a robust financial model and optimizing your supply chain efficiency, you can drive profitability and ensure the long-term success of your petrol pump business.

Opening a petrol pump business requires careful planning and execution. By following these 9 steps and utilizing the revenue-sharing business model, aspiring petrol station owners can establish a successful and profitable venture.

From conducting market research and developing a comprehensive business plan to securing funding, permits, and licenses, each step is crucial in ensuring the smooth operation and long-term sustainability of the petrol pump business.

Partnering with an oil supplier through a revenue-sharing arrangement allows the petrol station owner to benefit from a steady stream of revenue while minimizing financial risks. It also enables the oil supplier to expand its market reach and optimize its supply chain efficiency.

By implementing branding and marketing strategies, along with a financial model to track profitability, petrol pump owners can position their business for success in a competitive market. Consistent customer service, operational excellence, and compliance with regulations are fundamental to building a reputable and profitable petrol pump business.

With careful planning, dedication, and the right partnerships, aspiring petrol pump owners can embark on a rewarding entrepreneurial journey in the petroleum industry.

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Growth From the Petrol Pump Business in Pakistan

• December 14, 2022

Most Pakistani petrol pumps have workers holding a bundle of cash. The tale isn’t about unfair wages but how fuel pumps earn money.

Several factors influence the price of fuel in the country. The earnings received by a dealer are known as merchant margins (or pump margins in this context). Previously, percentages were utilized, but now they are fixed per liter.

What Is the Income From Petrol Pump Businesses in Pakistan?

Pakistanis have been queuing for fuel at petrol stations since the pumps were on strike. A company-owned pump was the sole means to receive Petrol; there were only a few dealer-owned pumps. Karachi, for example, only 20 pumps are operated by the firm. Dealers or strikes manage the rest. 

The Pakistan Petroleum Dealers Association (PPDA) has declared a strike to demand a more significant margin on petroleum product sales, which will begin on Thursday and last indefinitely.

Due to the petrol strike, the government, according to the minister, will not accept specific petroleum merchants’ “illegitimate demands.”

“The government would not hike petroleum prices by Rs9 per liter just to appease a few corporations,” he remarked.

Let’s Talk About Some Factual Stats Related to Petroleum

At petrol stations, petrol costs Rs3.91 per litre, while diesel costs Rs3.30. The Pakistan Petroleum Dealers Association (PPDA) requested that the 2.75% per liter earned by petrol outlets be raised to 6%. If this demand is met, petrol stations will make Rs8.75 per litre, and diesel stations will earn Rs8.5 per liter.

Because of agreements with merchants, petrol will now be paid at Rs 4.90 per liter. This equates to a 99-paisa improvement in fuel margin and high-speed diesel margin.

“The proposed 25% margin increase will cover all previous delays in margin adjustments and reduce the burden of inflation on dealers,” said the Petroleum Division.

In 2016, the ECC decided that margins would be revised yearly by an average CPI Consumer Price Index percentage. The regulation for this average change remained unchanged in 2019. The margin has only changed four times in the last five years for petrol and three times for diesel.

Whenever strike action has been risked, petrol’s most recent margin revision occurred in April 2021, 9 months after the last revision. For the last few months, the administration has been delaying the adjustment by saying that the PIDE report would be used to revise margins. Even though the study is complete, the government has yet to be willing to alter rates. Aside from that, given the impending fuel crisis in June 2020, the government’s relationship with petrol pumps might be more beneficial. Although inflation remains a problem, and fuel prices are growing globally, the government believes it must respond responsibly and appropriately.

Petrol Price Components

The Petrol price components are combined to calculate ex-depot pricing at stations. The base price is either the import or the ex-refinery price, depending on whether the oil is imported or produced domestically. Then there are retailer and freight costs and inland freight equalization margins. OMC profit margins (the amount of money earned by company-owned pumps) and dealer commissions are examples (of what petrol pump owners make). Taxes, such as the standard sales tax and the petroleum development levy, are levied at the end of the procedure.

The cost of transporting crude oil from the source to the refinery is the next significant contributor to a refinery’s inland freight equalization margin (IEFM). Transporting the finished product to other depots is also included in the price. Internal transportation costs are included in this category.

The following key addition is the inland freight equalization margin (IEFM) of a refinery, which is the cost of carrying crude oil from the source to the refinery. The cost of transporting the finished product to other depots is also included. This category includes transportation costs within the company.

Without these subsidies, petrol costs in Karachi would be lower. They would be higher in practically every other section of the country, including Balochistan and Gilgit-Baltistan, at the same time.

JINN Petroleum has settled two depots to fulfill the basic petroleum requirements. One is in Sahiwal, Punjab, and the other in Hub, Balochistan. The main focus is developing a solid retail segment that focuses on developing petrol pumps at critical locations and adding valued business partners. The journey has already started with establishing a retail network in different provinces and parts of Pakistan.

GSTs & Petroleum Industry

We finally come to taxes because the general sales tax (GST) and the petroleum development levy are added to the Petrol station price after all these tools. After these instruments, the general sales tax (GST) and the petroleum development levy are applied to the petrol station pricing.

The GST is fixed at 0% to alleviate growing fuel prices. It was previously set at 17%. Because it’s a ratio, it fluctuates with the cost of gasoline—the government levies a duty based on a rupee value per liter. Nonetheless, the premium is fixed per liter.

It is intended to counteract increases in import prices and fuel expenses to stabilize petroleum prices. During an election year, however, the levy is often used to alleviate customers or produce additional revenue. The one-time fee of Rs15 per liter has now been increased to Rs30 per liter.

When it wants to ease customers, the government could maintain a fee of zero rupees or a low number. As a result, if all expenditures are considered, the government may raise fuel prices to Rs30.

The government could keep a levy of zero rupees or a low number when it wants to relieve consumers. Therefore, the government could increase fuel prices to Rs30 after all the costs are added.

There are two kinds of petrol stations: company-owned and dealer-owned. 

A dealer-owned petrol pump is created when an individual obtains a “franchise” of a petrol pump, completes all legal processes, and sells fuel for an OMC. Dealership margins allow them to profit.

How much a pump earns is determined by the amount of fuel sold. Pumps also make money by selling lubricants and providing other services, including tire puncture stations, car wash facilities, and stores.

How Petrol Pumps Earn– Know the secret!

Your earnings are specified by the type and quantity of stations you operate and their location. Still, you can expect a potential annual income of PKR 2,500,000 to PKR 3,500,000 (for a single site) from year one, with the prospect of other revenues if you exceed expectations.” JINN petroleum makes petrol pump investment in Pakistan much easy.

While these figures are not guaranteed, the company you contract will provide gasoline and training if you establish a fuel station. You will earn your margin and possibly a bonus or remuneration if you exceed sales targets in exchange for your investment and work. Even though fuel prices contribute to inflation, inflation and the cost of doing business for pump owners have increased.

Conclusion: 

If you are looking to invest in petrol pumps , JPPL is the safest choice to invest in. Together, Let’s make a well-developed

Our overall strategy is to invest in projects that generate long-term value, achieving returns well above our cost of capital.

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Sohaib Zaman

The main reason to select the topic effect of Fuel Prices on automobile sales in Pakistan is that due to the continuous increase in inflation in Pakistan which leads to less purchasing power no matter of what sector it is. With this topic, we have checked how much the Petrol prices affect the sales of the automobile industry in Pakistan. Automobile sales are the variable that has been selected here for the research. Since a long time, the industry of automotive has been a growing and active field in Pakistan. However, it is not very established that an obvious list of top automotive industries can be figured out regardless of production volumes, localization of vehicle components, as well as technology’s transfer, remains low. Majority of cars used in the country consist of both fuel options that are CNG as well as petrol. CNG have high affordability rate and is also less expensive than petrol which is considered as dependent variable. However, the cost of fuel is independent variab...

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This research paper discusses the influence of new five year automobile policy announced by Economic Coordination Committee (ECC) in March 2016 for the period from 2016 to 2021 comparing with the old auto policy announced by the Government of Pakistan. The crucial point of this paper is to find the critical aspects of new auto policy and their impact on the profitability of major players in automobile industry of Pakistan. Main objectives of this policy are to help increase the volume with improved quality, catch the attention of investors, creating an extensive competitive environment, minimizing costs, technological improvement, satisfy all stakeholders through a Balance between tariffs and growth, customer satisfaction and Eliminating Monopoly of Existing Car Manufacturers. The important rationale of this paper is to have a look on the prevailing situation of automobile industry and the potential of this industry after the implementation of new auto-policy for 2016-21. It is to analyse whether this policy may influence profitability of the firms those have created their monopoly in this sector of Pakistan. The results of the study reveal that the profitability of major players of the automobile industry those were creating monopolies is not expected to decline even after the new policy. It may because of the trust of people on the local makes or expected ease in maintenance than those of the imported ones. However, the circumstances may change based on the customers' behavior that may cause the shift of their profit share to the New Entrants. Nevertheless, exploring the industrial alliance in this sector globally is of high importance for better quality, reasonable costs, fuel efficiency and striking designs. Various studies have been conducted to highlight the impacts of different policies announced by the

Mubashir Masood

Asian Academy of Management Journal

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The present study examines the factors affecting customer intention to use auto financing (ijarah) in Pakistan. The research framework is constructed based on the theory of reasoned action, which explains behavioural intention and its determinants. The study incorporates the participation of 350 potential customers of auto ijarah in Pakistan. Data analysis was conducted with structural equation modelling (SEM), assessing the measurement, and structural model. The outcome indicates that attitude, perceived cost benefits, Sharia compliance, religious orientation, and subjective norm are the significant predictors of customer intentions. We also found a statistically insignificant association between awareness and customer intentions. The results hold significance for the Islamic banking and financial service providers. This study provides a comprehensive understanding of the factors that contribute to the adoption of auto ijarah among potential Islamic bank customers.

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A lot of studies have been conducted on 3PLSPs (Third Party Logistics Services Providers), mostly encompassing users’ perspectives like; outsourcing vs in-house transportation models, causes of 3PLSP selection, service level requirements, attributes of good SPs (Service Providers) and region specific requirements of SPs. There are very few studies on Pakistan and most of the work done on Pakistan is industry specific and lacks general perspective. Studying the perspectives of 3PLSPs is among less researched areas, thus this study is focused to analyze the issues which are the back hand issues but ultimately affect the customers, being in the centre of the stage of every business. Three (3) intended IVs (Independent Variables); Fleet Induction decisions, MRO (Maintenance Repair Operation) and Terms of Services Contract alongwith Three (3) additional IVs (emerging out during data collection and analysis from industrial practitioners and expert); Outsourced Fleet Retention, Fueling Strategies and Unique Business Model are analyzed for adoption of Fee Charging Strategies by both; MNCs and Domestic 3PLSPs, working in Pakistan, from public as well as private sector. Phenomenological research model of qualitative research approach has been used and primary data has been collected through open ended detailed interviews with one practitioner each from PTN (Perfect Transport Network) and SAZ (Saeed-Adnan-Zaheer) Logistics (Pvt) Ltd, representing domestic, private sector and three professionals from NLC FS (Freight Services), representing domestic public sector as well as a professional from Agility Logistics (Pvt) Ltd, to represent MNCs, working in Pakistan. An expert has also been interviewed who has worked in NLC FS, Agility and PTN, before joining his recent assignment, in UBL. Findings and analyses of interviews revealed that diversified fleet induction strategies are being followed by different SPs ranging from 100 % equity to Leasing through financial institutions to unique induction model i.e Leased vehicle induction. Terms of services also varied from spot or walk-in customers to 1-5 years blanket contracts to Allocation model are being followed with different SPs for different clients. MRO has been found to be in-house, in case of most of the SPs, yet OEM (Original Equipment Manufacturer) MRO and a hybrid of both have also been seen in different SPs. A unique model for service provision, designed by PTN for KE (Karachi Electric, formerly known as KESC; Karachi Electric Supply Corporation) and unique induction model of SAZ Logistics for ATT (Afghan Transit Trade) are unique findings of the study. Analysis, recommendations and policy guidelines will help, not only the users of 3PLSPs (the business) by getting an insight of back hand of SPs, the industry of 3PLSPs by learning the best practices, the researchers by the opening of new avenues for further research and the government for formulating more pragmatic and industry oriented policies in the years to come.

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An in-depth look inside Pakistan’s leading energy company, fueling the nation’s roads, rails, and skies with the largest reach and network.

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PSO caters to POL requirements of a broad spectrum of customers comprising Pakistan's retail, Gaseous, Industrial, Aviation, Marine & Export sectors.

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PSO is leading the energy sector into the future with LSF, Active Intelligence AI Formula, 3D Protect, & Finest Quality Motor Oil.

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PSO’s fleet of different fuel cards makes your journey easy, flexible and enjoyable with countless top-of-the-line features and benefits.

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Become PSO's Business Partner via a smooth onboarding process and be a part of New And Upcoming Projects.

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Lorem ipsum

Pakistan State Oil is the largest oil marketing company of Pakistan and is currently engaged in the marketing, manufacturing, storage and distribution of both fuels and lubricants. PSO, with a widespread network of more than 3,500 retail outlets across 200+ cities country wide, touches upon the lives of millions of customers daily. Being the market leader, PSO possesses the best resources among all oil marketing companies operating in Pakistan in terms of its network, supply chain, storage capacity and its distribution muscle. With 9 installations and 23 depots, PSO can store approximately 1 million metric tons which represents 74% of the nation's total storage capacity. Integral to our success are our efforts to provide our customers unmatched services based on innovation, excellence and our vision for the future to deliver value to our customers.

At PSO we believe that customers are the lifeline for our business/organization. For this we are in constant pursuit to set high standards, by maintaining quality control of products and services at all levels, and provide our customers unparalleled and diverse services based on innovation, market research, a caring and a progressing vision we have for future.

Product and Services

Pakistan State Oil, caters to wide spectrum of various Fuel & non-fuel products, including;

• Motor Gasoline
• Corporate/Fleet Cards
• Furnace Oil
• High Speed Diesel
• Euro 5- Hi Octane
• Petrochemical
• Shop Stop (NFR)
• Complete range of automotive & industrial range lubricants
• Car Wash (NFR)
• Tyre Shop (NFR)
• Light Diesel Oil

Assuring our business partners with best services and cooperation at all times.

Our Lubricants Range

Partnership opportunity at prime commercial locations - fuelling success together in karachi lahore.

Pakistan State Oil is the largest national Oil Company fuelling the energy needs of the population and has been driving the wheels of the national economy. The Company is engaged in the marketing and distribution of various POL products including Motor Gasoline (Mogas), High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals and Lubricants.

Continuing our tradition of providing innovative solutions to the motorists of Pakistan, we are looking to take commercial properties on rent in Karachi & Lahore for initiating a new business venture. Here's an exclusive opportunity to join hands with us and be a part of our journey towards excellence!

What We're Looking For:

• Prime Location: Commercial properties ranging from 2500 sq feet to 3500 sq feet strategically situated in the areas of DHA, Clifton, PECHS in Karachi DHA, Pine Avenue, Johar Town in Lahore.
• Built-up Area: Commercial plots with a commitment from the property owner to construct the grey structure as per our provided layout.
• Basement: Properties with no basement space will be preferred, ensuring a streamlined setup for our business model.
• Operational Independence: PSO will be managing operations, offering a hassle-free collaboration without any operational concerns on your end.

Why Partner with PSO:

• Established Brand: Join hands with a renowned and reliable name in the oil marketing industry, known for excellence and customer satisfaction.
• Mutually Beneficial: Our partnerships are designed for mutual growth, ensuring a prosperous future for both parties involved.
• Transparent Processes: Experience transparency in all our dealings, making the partnership journey smooth and rewarding.

How to Get Started:

If your property aligns with our requirements, express your interest by providing the following info through email on [email protected] before 17 th Of Jan 2023:

• Contact No:
• Property Address:
• GPS Location:
• Rental Demand:

Our team will review your submission and get in touch for further discussions.

Retail Business

Retail business is one of the core business segments of PSO. The retail team at PSO works relentlessly to fulfill the needs of the automotive and agricultural sector of the country. With more than 3,500 retail outlets nationwide; PSO serves approximately 3 million retail customers on a daily basis. Being the largest Oil Marketing Company of Pakistan, PSO is committed to providing business opportunities to interested individuals/proprietors/companies/enterprises. Thanks to our high quality products, market leadership and a vast retail network, where your partnership with PSO can deliver significant growth to your business.

Build your business together with Pakistan State Oil Company Limited.

Becoming a part of PSO retailer team means becoming a part of an iconic national brand. PSO is a proud leading energy company of Pakistan, and is currently engaged in the marketing and distribution of various POL products including Motor Gasoline (Mogas), High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals and Lubricants.™

Each day, we interact with millions of customers at our retail outlet network of more than 3500 across the country and continuously strives to provide you with an unmatched service and care at PSO’s forecourts round the clock.

PSO contributes in maximizing dealers profit and attract customers through various marketing initiatives, customer promotion and loyalty rewards from time to time. Interested and financially sound parties who possess the ability to manage their business ethically and independently are encouraged to apply.

Be a PSO dealer

Become a PSO dealer by establishing a retail outlet that sells to motorists fuel, lubricants, and convenience store goods. The services may also include car wash, tyre shop and quick service restaurant as per the availability of space and business viability.

Who we are looking for?

You can become a pso dealer if:.

• You own a piece of land or have a possession of leased land in main cities, highway or at potential business areas (minimum 20 years of available lease).
• You have a strong business acumen and financial insight.
• You are committed to invest your time in safety, high standards of service and are result oriented.
• You possess high caliber of personal integrity.
• You display self-motivation and adaptability.
• You exercise strong leadership skills and can handle and motivate a team.

Interested and financially sound parties who possess the ability to manage their business ethically and independently are encouraged to apply.

LPG Business

LPG department at PSO has an extensive network of distributorship spread across the country from Karachi to Peshawar. Pakistan State Oil Company Limited (PSO) has been an established market player in LPG storage, bottling, distribution and marketing since 1982 under the brand name “Pak Gas”. PSO is the fastest growing large LPG marketing company in the industry. PSO is aggressively and ambitiously moving forward in maximizing its LPG business while marketing with the highest standards of safety and environment protection.

PSO wants to expand its network of LPG distributors especially in the rural and sub-urban areas where LPG is required as an alternate fuel option. PSO has top of the line fuel storage & filling plants across Pakistan catering to a large number of distributors and industrial customers. PSO maintains long-term LPG supply agreements and state- of- the-art LPG bowsers to fulfill and cater to the requirements of domestic, commercial and industrial consumers.

You could be a PSO LPG distributor if:

• You own a piece of land (owned or rented).
• Have a strong business acumen and financial insight.

Mr. Imran Hasan Khan

Business Manager GF South

Phone: 021-99203724

Mobile: 0333 - 2134540

Fax: 021-99203724

Email: [email protected]

Address: 7th Floor, PSO House, Khyaban-e-Iqbal, Clifton, Karachi.

Mr. Izhar A Khan

Business Manager GF Central

Phone: 042 - 99333503

Mobile: 0310 - 0555510

Address: 3rd floor, Askari Corporate Tower, Main Boulevard, Gulberg III, Lahore.

Mr. Taimur Yaqoob

Business Manager GF North

Phone: 051 - 9330734

Mobile: 0340 - 0008147

Fax: 051 - 9330748

Address: PSOCL Office, 18th floor, Ufone tower, Blue Area, Islamabad.

Faiza Jamil

Assistant Manager Gaseous Fuel

UAN: 111 - 111 - PSO (776)

Ta'aluq Care Line: 0800-03000

Website: www.psopk.com

Consumer Business Applications

Pakistan State Oil is the largest oil marketing company of Pakistan and is currently engaged in the marketing, manufacturing, storage and distribution of both fuels and lubricants.

Consumer Business is the Industrial Sales & Marketing wing of the company and caters to the needs of our Corporate, Industrial & Defence customers. The company takes pride in continuing the tradition of excellence and is fully committed to meet the energy needs of today and rising challenges of tomorrow.

At PSO we believe that customers are pivotal part for any business organization’s success. For this we are in constant pursuit to set high standards, by maintaining quality control of products and services at all levels, and provide our customers unparalleled and diverse services based on innovation, market research, a caring and a progressing vision we have for future. We take pride in the fact that Consumer Business department is ISO 9001:2000 Certified along with all of its divisions. Hence, our practices are at par with international standards. PSO is also the key supplier of POL products for major projects in Pakistan including supplies to Armed forces and CPEC projects in Pakistan.

We assure you of our excellent services and look forward to having a healthier business matrix in future to come.

LSAT Business

Ever since its existence, Pakistan State Oil Co. Ltd. has been playing a leading role in the oil industry of the country. Round-the-clock, uninterrupted oil supplies, all the way from Karachi to Khyber, through an integrated network of oil terminals and storage depots has been PSO's hallmark. Lubricant volumes are primarily dependent on fuel sales. PSO reaches its lubricant customers through Retail Business, Consumer Business and High Street. The lubricant industry is primarily driven by economic activities in the agriculture, industrial and transport sectors. We are looking for potential candidates who have the ability and passion to run their businesses in the most innovative ways possible.

You could be a PSO LSAT distributor if:

• You are enthusiastic, passionate and committed to spread positive image of PSO’s lubricants throughout the market.
• You have the aptitude to grow the business and exceed estimated sales while controlling your costs.
• You have a greater network outreach of potential retailers.

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How to start Petrol pump in Pakistan

• Thread starter aizad
• Start date Jul 23, 2018
• Tags business
• Jul 23, 2018

• Aug 3, 2018

Thanks, bro for sharing such a fruitful information. Hence the legal process is very long and could give a hard time. But the incom is for a lifetime. I'm also thinking to start a reliable business. But my budget is low with no experience. So I'm looking for a partner who could invest 50% and share his experience. Lets see, What will be the outcome.  

Administrator

• Apr 26, 2019

Faraz said: Thanks, bro for sharing such a fruitful information. Hence the legal process is very long and could give a hard time. But the incom is for a lifetime. I'm also thinking to start a reliable business. But my budget is low with no experience. So I'm looking for a partner who could invest 50% and share his experience. Lets see, What will be the outcome. Click to expand...

Badsha khan

• Sep 30, 2019

• Apr 27, 2020

To whom someone contact for New Petrol Pump process (If he has good location)  

• Jul 9, 2020

stabbas said: To whom someone contact for New Petrol Pump process (If he has good location) Click to expand...

• Mar 26, 2021

I guess you need to have lots of money and back of some politicians. That's it  

• Nov 29, 2021

To buy something or to set up a new business is not easy anymore. With an 8.4% inflation rate in Pakistan and higher taxes, it will be a tough call to start a new business setup.  

• Nov 30, 2021

Ume.Habiba said: To buy something or to set up a new business is not easy anymore. With an 8.4% inflation rate in Pakistan and higher taxes, it will be a tough call to start a new business setup. Click to expand...

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Pakistan’s First GOLink Station – A Revolutionary Way Of Fueling

PRESS RELEASE

GO TO ROLL OUT THE PAKISTAN’S FIRST GOLINK STATION – A REVOLUTIONARY WAY OF FUELING

  3 August 2022:  Gas & Oil Pakistan Ltd. (GO) today announced its plans to roll out its new and innovative fuel station concept “goLink” across Pakistan. The goLink Station is a mobile fuel station format that will enable for motorists easy access and convenient fueling services in their direct vicinity. It is designed to significantly reduce driving time for customers to find a petrol pump as it can be deployed on existing parking lots or paved areas.

Speaking at the occasion, Mr. Zeeshan Tayyeb, Chief Operating Officer for GO stated that “goLink Station will significantly reduce the cost of providing vital fueling infrastructure in Pakistan due to reduced space requirements and significantly lower initial investment with each mobile station saving approximately 500,000 liters of fuel for motorists along with 1,200 MTs of reduced carbon emissions every year. It is therefore ideally suited to serve residential, commercial, and business areas as well as remote/seasonally busy areas with much needed motor fuels. The goLink Station can also provide a safe and convenient way of fueling for the gensets operating in Pakistan.”

GO has partnered with ENOC Link, the Emirates National Oil Company’s (ENOC) mobile fuel delivery arm, to bring this unique industry innovation to Pakistan. The UAE is one of the most advanced fuel distribution markets globally, and a leader in technology innovation.

ENOC Group owns and operates ENOC Link, the digital mobile fuel delivery service in the UAE, created in 2019 as part of ‘Next’, the Group’s digital accelerator program. ENOC Link also runs uniquely designed eLink stations, a mobile fueling format that enables motorists and customers easy access and convenient fueling services. It does not require assembly and can easily move to a different location on the spot and is also equipped with innovative digital systems giving customers a new fueling experience.

GO’s goLink Stations will be equipped with various tank sizes with the ability to fuel up to four vehicles simultaneously, thereby cutting down on waiting time. The mobile station uses the latest international design and safety standards and complies with standard fueling regulations for petrol pumps and fuel distribution trucking. The goLink Stations are also equipped with innovative digital systems – like digital payment options, access to the GO Card loyalty program, etc. – giving customers a new fueling experience altogether.

Subject to regulatory approvals, goLink Stations will offer consumers a reliable supply of GORON 92, and GORON ULTRA 95 and GO Diesel fuels.

The ENOC Link team along with GO’s Chief Operating Officer, Mr. Zeeshan Tayyeb, visited Chairman OGRA, Member Oil, DG Explosives and DG Oil to explain the goLink Station concept and to kickstart the regulatory approval process.

The goLink Stations are expected to start operations within 2022 once regulatory approval process is completed.

  About GO:

GO (Gas & Oil Pakistan Ltd.) is the fastest growing Oil Marketing Company in Pakistan. Since 2015, the company has established more than 1,000 retail outlets, forming the largest network in private sector in Pakistan. The company has also developed storage infrastructure of more than 200,000 MTs and continues to be at the forefront of oil marketing in the country. GO is also the first OMC in the country to introduce Electric Vehicle chargers in Pakistan. The company has also introduced world class additives in its fuels to improve engine performance and reduce environmental pollution. GO’s CSR activities span a wide variety of projects including healthcare, education and environment. For further information, please visit: www.gno.com.pk

  ——-ENDS——-

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