Start a Petroleum Business

A petroleum business either stores petroleum products or provides customers with various types of petroleum products such as diesel, unleaded gasoline, kerosene, and liquefied petroleum gas.

In starting a petroleum business, you need to consider what type of petroleum gas you will be selling.

Determine if you will be able to gain a percentage of the current market against your possible competitors. The place is also an important thing to consider, if you are planning to put up a gasoline station, a place where there are no existing gasoline stations is ideal to start your business. If it is also possible, you have search for a place where a lot of vehicles pass by.

Capital also plays an important role in putting up a petroleum business. This will help you to determine what type of petroleum gas you will be able to purchase and sell. Remember that if you put a larger capital, you will gain larger profit too. Knowledge on the business field would also give you an advantage over your possible competitors.

Petroleum business can be classified into three categories namely upstream, midstream, and downstream.

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The following are the classifications of a petroleum business:

  • Upstream - this requires a large amount of capital, making it almost impossible for a single proprietor to put up.
  • Midstream - this type of petroleum business mainly deals with the storage of petroleum products in large quantities. It also requires a large amount of capital. Owners of this type of petroleum business can rent Tank Farms to store the petroleum products. The demand of this type of petroleum business is high that is why if you invest in this type of petroleum business, the possibility of gaining large amount of profit is also high.
  • Downstream - this category deals with the distribution of petroleum products. An example of this category is a gasoline station. The marginal profit of this type of petroleum business is lower than the two types of petroleum business above but the frequency of the customers could bring a substantial amount of revenues.

In starting any type of business, insurance is a must to protect not only your business but also the people who work for you. Seek advice from people who actually have an experience in doing this type of business. Preferably, consult people who actually own a petroleum business. Shopping around for insurance companies will help you to decide which insurance policy will best suit your business.

After considering the things above, the next step is to obtain certain legalities, such as business permit or permit to operate. You can consult a lawyer regarding this matter to ensure that you do not violate any laws. Or you can go directly to your city hall and inquire about the requirements in obtaining such legalities.

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758 Comments

  • LINDA MABUSELA said on July 28, 2010
    Where do i start, i live in South Africa and there are many places where i see that petrol is needed, where and how to start.
  • FRANKLIN said on August 11, 2010
    I want to start a petroleum business in Ghana Acrra. I need some professional ideas and how much capital will be require to commence this business. Thanks.
  • Dipak bangar said on September 10, 2010
    i want start petrol pump. how much capital will be required. please guide me. i live khalapur (raigad) Awaiting your reply. Thanks
  • patrick raftopoulos said on September 15, 2010
    Australia melbourne, victoria. i am only young but i am looking at opening a petrol station and one has recently just closed down not far up the road from me and all the pumps and existing shop front is still there i would like to know how much it would around about cost to get one started and who to contact and what would be the best way to source out the best price on fuel to see what is actually possible to make money thank you very much.
  • Vinay K.Salunke said on October 20, 2010
    India {Goa} Margoa, i am young & looking out for start a petrol station . I need some professional advice & ideas to start my business. At the same i want all the needed information like the best way to source out the best price on fuel to see what is actually possible to make finance & all. Awaiting for your kind reply.Thanks.
  • Rambabu Ambati said on December 3, 2010
    I would like to start petroleum business like petrol pump, LPG gas agency etc. how much capital will be required to start the business. Please guide me. I am residing at Mancheshwar Industrial area, Bhuwaneshwar, Orissa, India. Mobile: 0934802387, Thanks and awaiting for your reply.
  • Akhtar Ahmad Darwis said on December 5, 2010
    Malaysia Kuala Lumpur, thank for above information. its really help me on idea aspect. I would like to know the whole idea of expenses related building petrol station. Could you kindly guide me about this thing. In addition can you give me projection of profit that I can get from this business operation. Thanks and awaiting your reply
  • nnamdi joseph said on February 18, 2011
    i am interested in going into the midstream petroleum business please what is the investment like and financing opportunities
  • Minthi Ramabale said on March 6, 2011
    I have a dream to open an petrol station at Limpopo. Please guide me as soon as possible. I would like to know idea expenses.
  • SOBANDE ABIODUN said on March 18, 2011
    I want to start distributing petrol, diesel or kerosene to consumer, please help me how can i go about it, what are the procedure, how do i start, how can i get customer and then like how much would i need to start?. I have no knowledge of this petroleum business please help.
  • Rizalino B. Abella said on March 27, 2011
    Am interested a putting-up a gasoline station (downstream business). How do I start with the business? Is there a book where I can read on how to start up the business? I am residing at South Jersey, USA. Thanks...
  • Ranjit Chekhalia said on May 28, 2011
    I want to Start a Petrol pump & CNG station in Barvala Taluka, Dist. Ahmedabad, Gujarat. Its 28 km from Dhandhuka & also 29 Km from Botad. Please let me know the procedure & the total amount of capital required for setup of new Petrol pump & also how much land will be required to construct a petrol pump
  • kearabilwe Fani said on June 4, 2011
    i want petrol pump. i stay in BOTSWANA ,125 KM From Kasane and i dont know how to start.
  • steven said on June 28, 2011
    Nigeria, i want to start petrol business, how do i go about it, what are the financial backing and what are the other requirements. thanks
  • Liberty Dandira said on July 10, 2011
    I want to start a Petroleum business. How much capital is needed. I am in Zimbabwe
  • Deo said on July 15, 2011
    I want to start a petroleum business in Uganda but am not sure of where to buy nice pumps and at what cost are they?what could be the minimum capital required for that business? Thnks.
  • Aubrey Gysman said on July 23, 2011
    Hi, I live in South Africa(East London) and want to open a petrol station in my area. I already got quotes for my Firequard above-ground storage tanks, but want to know more about the legal requirements associated with this.
  • JOHN said on July 28, 2011
    i am based at Phuthaditjhaba (free state)want to open petrol filling station. what are requirements and where to start. your response will be highly appreciated in this regard.
  • Pontsho Makgoba said on August 31, 2011
    Hi there, In order to start a petroleum distribution or filling station the best is to contact TOTAL or SASOL, BP, etc. They will guide you on the proper channels. Department of Energy's website will also be helpful in this regard as you need to understand the legislation and regulation in the industry. Regards
  • nazeer said on September 26, 2011
    i need the details of new petrol station opening total investment details
  • william kofi said on October 13, 2011
    I WANT TO START UP PETROL STATION I'M STAYING IN BOTSWANA, I WANT TO START IT AT OTSE VILLAGE, WHAT ARE THE REQUIREMENTS, AND ALSO I NEED GUIDANCE ON HOW TO START IT UP,YOUR RESPONSE WILL BE HIGHLY APPRECIATED
  • SAGI M said on October 21, 2011
    I would like to run retail rural outlet petrol and diesel dealership in Andhra pradesh, india so i need an idea to do business plan
  • Lukas Shimooshili said on December 3, 2011
    i would like to open a petrol and diesel service station in the town of Oshakati, Namibia. i need information on the starting capital, the locality of my place is just in a high traffic area close to the road.
  • jayesh said on December 15, 2011
    I want a petrol pump or a CNG gas pump i have a land for this business In ahmedabad so plzz give me license of this petrol pump
  • KZaki said on February 1, 2012
    i'm from cairo , Egypt , would like to have a foreign partner to work in the petroleum field.
  • Atta kofi said on March 12, 2012
    l want to start filling station at Asamankese E/R in Ghana. How can you help interms of capital to start? I need guard lines.thank you hope to here from you.
  • NITIN P SHAH said on April 5, 2012
    I WANT START PETROL PUMP IN AHMEDABAD AND WHO WANT TO PARTNER IN HIS WORKING PUMP PLEASE INFORM ME.
  • Moemedi said on April 10, 2012
    I'm South Africa and I would like to start distribution of petroleum products such as vaselines , how do I start the business ?
  • Adil khan said on April 14, 2012
    Hello, i want to start a new business n i saw there is a shortage of petrol pump in our area Seoni malwa ,Distt. Hoshangabad ,Bhopal M.P. So, i want to know the total investment of capital required for starting a petrol pump and also want to know for some financial help because i need it
  • Nancy said on April 23, 2012
    Hello, i want to start a new business n i saw there is a shortage of petrol pump in our area saha ,Distt. ambala city ,haryana WHAT ARE THE REQUIREMENTS, AND ALSO I NEED GUIDANCE ON HOW TO START IT UP, YOUR RESPONSE WILL BE HIGHLY APPRECIATED. how much money i need to open up a patrol pump.
  • Kalpana said on May 14, 2012
    I want to know about open new petrol pump in gujarat cambay, how can get dealership , agreement how much cost for opening petrol station
  • uday said on May 16, 2012
    I want to be the retail outlet dealership of petroleum business in goa.I want you to guide me for getting distributorship. Please send me all details.
  • abner david said on May 19, 2012
    hi, i got a some land in goa(india) and i would like to know the amount of capital required and the government formalities with regards to environment standards etc and how to go forward to getting this thing done. pls sent me your kind reply
  • shubham ghodake said on June 2, 2012
    hi, i want to start my own petroleum company but there is one problem who will buy my petrol bcoz all the petrol pumps in india are captured by hindustan petroleum ,bharat petro, indian oil then which petrol pump owner will take my petrol please ans me
  • Nani said on June 14, 2012
    I want to a fuel station in Ghana Accra and i want to how much will i need to start this business. i need a serious guide line to make me put up this business. thanks and will be waiting to hear from you
  • RAJKUMAR said on June 23, 2012
    i want to start pretrol pump in renukoot and i want to how much will i need to start this business, and what are the things are used while starting this business? and i will be waiting to hear from you
  • P.P.Ravindran said on June 23, 2012
    I am a retired person and a friend of mine has lot of interest to invest and run a Petrol Pump in Kerala. It will be beneficial to me also. What I want to know is size of land, capital, employees, etc. which can make a Petrol Pump. Also what is the return on investment under this category. I would be grateful if some correct information is passed on to me. Thanks.
  • durgesh shetgaonkar said on June 25, 2012
    i want to start petrol pump station business, but i dont know about how to take agency, license etc. please guide me
  • Lawrence A.B. Lusanie said on June 28, 2012
    I live in Sierra Leone and would like to start a petroleum business in Sierra Leone. I need professional advice.
  • mohammed saqeb said on July 3, 2012
    i want to lpg auto gas business i want to know how to start do you supply tank and filling pumps thanks
  • Akash Nag said on July 4, 2012
    Bokaro, jharkand:Sir my father is a businessman. he owns a shop at localities of steel furniture.the market has declined.he makes some gas business like lpg gas refilling,stove sell and repair and also sold lpg cylinder. so plz guide me...we want to open a gas sub dealership or dealership. what will be the cost, where should we apply.
  • Zamokuhle Zulu said on July 6, 2012
    I want to Start a fuel station in Nongoma. I need to know the pros and cons of the petroleum industry and how revenue is headed in this by the retailer
  • Ravi Teja said on July 10, 2012
    Hi i am Ravi i am interested to do petroleum business and i need step by step process and budget etc
  • Jay varma said on July 11, 2012
    i want to start hpcl hamara pump at u.p. Varanasi at near babatpur. In our village petrol pump are so long then i want to start it. Plz help me and guide. Plz contact me and tell me how to start
  • fani said on July 18, 2012
    Hi. I stay in idutywa eastern cape, I need legal information with respect to mobile or movable fuel station ,container type very popular in china .Are they legal for use in sa
  • kennedy muthama said on July 20, 2012
    Hallo guys am Kennedy Muthama from kenya am in the petroleum industry for the last 2yrs and am looking forward to investors since i got client all over east and central africa. However is interested kindly email me on muthaiyo@yahoo.com or call me at +254735441520.thanks
  • sajith said on July 26, 2012
    i am looking to start a lpg station in ernakulam district, kerala, india. so kindly request to guide me with the total cost required excluding the premises, as i have my own property near to highway. sajeeth.
  • eunice said on July 26, 2012
    I want to start just a kerosene pump station in remote areas outside town. I live in malindi District KENYA. Kindly advice me with all the required costs needed to start the business
  • A.sharma said on July 26, 2012
    i am looking to start a petrol and diesel pump at BIBIPET village, mdl:DOMAKODA, NIZAMABAD DISTRICT ,ANDHRAPRADESH, INDIA ,SO kindly request to give information, how to get dealership and total cost required excluding the premises, as i have my own property beside of main road and there is no petrol pump in between 10 villages. sharma
  • ashish goyal said on July 28, 2012
    please send me full details of new petrol pump project report like working capital, construction, etc. i am residing alote dist. ratlam (M.P.) thanks
  • Subrat Ranjan Kar said on August 1, 2012
    Please send me the details. kindly advice me how to get this opportunity. Regards srk
  • PATIENCE CEDRAS said on August 2, 2012
    I AM FROM EASTERN CAPE BUT WORK IN BLOEMFONTEIN, THERE IS A NEED FOR A PETROL STATION IN BREIDBACH, KING WILLIALMS TOWN FOR PETROL, PEOPLE HAVE TO TRAVEL ABOUT 25K TO GET PETROL.
  • Susheel said on August 3, 2012
    Hi I want to start a Gas Agency in Jaunpur U.p. Please let me know the cost and requirements to setup the business. Thanks
  • shatrughan said on August 7, 2012
    i want to start business of petrol pump how much capital, land and qualification require pls help me
  • tandel vinod said on August 9, 2012
    i want to know how much money require to open a petrol pump in village area what is the term and condition. vinod tandel - 919974926436
  • rakesh reddy takkal said on August 11, 2012
    I am 27 year old guy and i would like to start a petroleum business like petrol pump,, LPG gas agency etc.. How much capital will be required to start this business.. Please kindly guide me and send me the required accurate information.. I will look forward for your kind response.. Location: Place: Adilabad, State: Andhra Pradesh, Country: India.. Pin code: 504001..
  • manish singh parihar said on August 15, 2012
    Sir/Madam I am interested to open a new LPG Indane Gas Agency/Dealership at Village Dolariya, District Hoshangabad, Madhya Pradesh. Kindly give your suggestion and instructions. With regards, Manish Singh Parihar
  • Kutlwano Ookeditse said on August 16, 2012
    Hi i am Kutlwano i am interested to do petroleum business in rural area and i need step by step process and budget etc. I stay in Francistown, Botswana
  • malik said on August 18, 2012
    hey.. i would like to open an filling gas station in birmingham UK.. can you plz tell me the procedures and how much capital will be needed thanks
  • prahladsahu said on August 19, 2012
    I would like to open a petrol pump in my village jaitpur, District-Balauda bazaar tahsil-bilaigarh. Is there any quota for graduate woman and also about the capital and land area required.
  • james said on August 21, 2012
    I would like to start a petroleum business in Pittsburgh, Pennsylvania right now I am presently gathering info and resources
  • Rakesh patel said on August 21, 2012
    I would like petrol pump business in Gujarat,but no idea in this producer so pl provide,i am Diploma mechanical Engg.
  • Prasad Pednekar said on August 22, 2012
    hi... i am young n wana start a petrol pump in Goa. i need to know what will b the total cost approx. in setting it up.. n overall what all do i require in doing so... please advice. thanks tc
  • AMULYA KUMAR SEN said on August 24, 2012
    Dear all I would like to open a petrol pump in my own place at kayathapalla ( village)Odisha, Khurda District. so kindly guide me the details regarding the investment of total capital and alls Thanking you Amulya Kumar Sen
  • Deepesh Kumar said on August 24, 2012
    Hello Sir, I am interested to open a petrol pump in Rajasthan. What I want to know is size of land, capital, employees, etc. which can make a Petrol Pump. please advice. I am waiting your reply.
  • krishna kharya said on August 30, 2012
    I am 20year old boy i would like to start petrol pump near to karanjiya state mp in india i have a land to start in petrol pump so please i want guide and how much capital required with details so please advice. I am waiting your reply.
  • dipankar said on August 31, 2012
    i am 22year old boy i would like to start petrol pump in kolkata ,west bengal ,india so i want to know how much capital is required and what is the procedure to start the petrol pump and every details please reply
  • roshan kumar said on September 1, 2012
    i have land so how much investment pls reply all details
  • Ashok patel said on September 3, 2012
    Sir i would like to open a petrol pump in my town (jodhpur, Rajasthan) after observing many requirements of this type business. So please tell me how much capital required at minimum level. Sir i am waiting ur reply. Thanks
  • shiva said on September 3, 2012
    I am 29year old boy i would like to start petrol pump in Andrapradesh state. please let me know which places are vacant, my own places is there in my district, How to apply.
  • pranjal said on September 6, 2012
    Sir, i would like to open an LPG agency in barpeta district, assam. Please let me know from where i can get license to open it. what is the procedure to apply and minimum expenditure.
  • Rao said on September 9, 2012
    Investor looking for Running Petrol pump Dealership required immediately in Hydrabad city or Andhra Pradesh--call 8121050919
  • yash said on September 12, 2012
    ashish goyal I have land for petrol pump in pithampur, Indore M.P on good business point you can contact us 9425352954
  • raj said on September 12, 2012
    Hi, I live in South Africa(Mpumalanga) and want to open a petrol station i want to know more about the legal requirements associated with this. even the budget how much it can be let me know thank you
  • Pranay gadepatil said on September 15, 2012
    I wont to start a petrol and diesel distribution business. help me how to get license. add- tal - shrirampur, ahmednagar, Maharashtra, india
  • Chandan Tiwari said on September 16, 2012
    I want to open hp gas agency in block ramnagar, jaunpur, u.p. India to home dealership. give me guidelines
  • Ravikumar g said on September 19, 2012
    i want to start petrol and diesel distribution business. help me how to get project report and license, bunk in west godawari dwarakhatirumala mandal easu yadavalli pls guide me. Call me 09848969699
  • nirmal vara said on September 21, 2012
    I want to open hp gas agency in block mohana gwalior MP india to home dealer ship give me guidelines details procedure for apply of dealership.
  • arunkumar said on September 22, 2012
    i am 27 years old, i want to start a petrol and diesel pump(bunk) in my area in tamilnadu, please get me some ideas like what capitals is required and what are the formalities needed, please send me details to spk.arun@yahoo.co.in
  • Joshwa V.S said on September 22, 2012
    i wish to start one gasoline station in Porumamilla near Kadappa. plz give ur advice
  • Adjah wisdom said on September 22, 2012
    I am 28 years and i want to establish petroleum and gas filling station in Ho, volta region, ghana. Please i want to know how much money involve. Am having the certificate. Also i want to know if i can get any petroleum company to assist then we will go into negotiation. Please help me.
  • Chinmay kumar mohanta said on September 25, 2012
    I am 23 years old boy, i would like to start petrol pump in local area. My location is in india. want to know how much capital is required and what is the procedure to start the petrol pump and every details please reply. Mob-+919853836744
  • meenakshi said on September 25, 2012
    Sir, I want the required minimum size of plot to apply for petrol pump in the outskirt of Dehra Dun. The area is under the preview of Mussorie DehraDun development authority. Thanks Meenakshi
  • bharathi said on September 25, 2012
    i am 21 year old boy, i just finished my B.E degree and also sc candidate .i like to open new petrol station in local area. my location in india state_tamil nadu, city_thoothukudi want to know about cost for opening new pump station and also want to know about concession for sc .awaiting for ur kind reply .thank you
  • Ugboh oscar said on September 25, 2012
    Hi, I am Oscar Ugboh from Nigeria. I happen to be actively involved in the petroleum industry which is the mainstay of my country, Nigeria's economy. Presently I am based in Lagos,Nigeria with a market size of over 18 million ready customers and I'm seeking investors to partner with me in the establishment of a petrol filling station on a cite duly approved by the department of petroleum resources here in Nigeria. Investors are guaranteed on adequate return on investments. The business location is at lagos, nigeria. U can call me for further inquiries on +2348162655771 or email me at (vision2017@yahoo.com). Thanks
  • Ramesh s said on September 27, 2012
    I want to start a small petrol station ..What is the starting investment cost required ?
  • HITESH said on October 1, 2012
    I WANT TO OPEN PETROL PUMP IN KUTCH SO PLZ TELL ME HOW MUCH CAPITAL IS REQUIRED WHAT SHOULD I HAVE TO DO
  • pramod joshi said on October 2, 2012
    sir, i would like to open L.P.G. gas agency in salav murud, give me guideline plz contact me 8983511291
  • Anand jog said on October 2, 2012
    sir, i want to start business in goa india. pl. help me my mobile no is 9923087314
  • Avinash Bhardwaj said on October 2, 2012
    i am 28 years old, i want to start a petrol and diesel pump(bunk) in my area in gaya, please get me some ideas like what capitals is required and what are the formalities needed, please send me details to avinash.punaul@gmail.com. 9561069119
  • rohan nalawade said on October 4, 2012
    Please send me the details about the area and investment
  • Melissa Apillanes said on October 5, 2012
    Pls give me an advice if I should form public or proprietary company for a purchase of multi-million-dollar petroleum distributorship. What factors would I take into account? Thank You!
  • Sthembiso Radebe said on October 5, 2012
    Hi, my name is Sthembiso, I'm 27 years of age and I live in South Africa, Northern free state in town call sasolburg. I'm interested in starting a petrol station and a convenient store in my local area, as there is only 1 petrol station in my area and it often runs out of petrol and it opens in daytime and closes in the evening. So this would advantageous for me and the resident of area to have an all nyt petrol station and a convenient store, and it will also beneficial to the community in terms job creation to the community. My contact details are as follows: 0795266716. Thank you.
  • RINKI said on October 7, 2012
    want to buy petrol pump in gujarat or in punjab or in calcuatta.. Interested parties please contact me.... at 9725646657
  • Albert Gyamfi said on October 7, 2012
    hello, am a Canadian and I want to open a gas station and a store in Ghana, I have the location for it already I need to know which gas bank company should I contact. My number is 1780-668-4468 or 1780-250-4601. Thank you for you time
  • HARJEET SINGH said on October 9, 2012
    i want to start a petrol pump, on the jammu kashmir national highway, at udhampur [batter ballian] . i want to know the procedure ,and conditions to start it. so please guide me.9622899856
  • santosh said on October 11, 2012
    hello sir, i want to put a new petrol pump as well as lpg business plz advise me. thanx
  • bijender singh said on October 11, 2012
    hi i am bijender i want to start petrol pump in my village. my village is on ballabgarh sohana road teh..sohna disitic gurgaon haryana so pls send all details.
  • Alok said on October 14, 2012
    i want to know, how start a petrol pump and also a rural business. i am from dist.-surguja, chattishgarh state.
  • sv ramana said on October 16, 2012
    hi this is ramana i want to start petrol and diesel business in INDIA, Andhrapradesh, Anantapur dist. so please give me suggestions

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