Previously, petrol stations made Rs3.91 per litre and diesel stations made Rs3.30 per litre. The Pakistan Petroleum Dealers Association (PPDA) had demanded that the profit made by petrol stations per litre be increased to 6%. If this demand is met, petrol stations will profit Rs8.75 per litre and diesel stations will profit Rs8.5 per litre.
How much money do gas station owners make?
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 value of a petrol pump 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.
The deal
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 profit does a gas station make on a gallon of gas?
There’s a reason why nearly all gas stations are also stores: profit margins on gasoline are roughly 2%, so they make the majority of their money on pricey sandwiches and drinks.
Independents, I believe, make much less since they lack the purchasing power and storage capacity of the big boys. I’m not sure how viable it is for some of the smaller businesses to buy ex Rotterdam when the wholesale price is low and sell to us when the price rises again; I’m not sure how sustainable that policy is.
For both petrol and diesel, fuel duty is now collected at a flat rate of 57.95p per litre, with VAT of 20% applied to both the product price and the levy. With petrol at 1.20 a litre, the government receives approximately 82p from each litre.
How much should I spend on a gas station?
In India, how much money is required to obtain a gas pump license? 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.
Is running a gas station a profitable business?
In India, opening a petrol station is a high-risk venture. Still, it’s a lucrative business, with fuel station owners earning roughly 3.5 lakhs per month if they sell 400000 gallons of gasoline at a commission rate of 3.0/litre.
Petrol pump business: Total Investment
The cost of land varies depending on the value of the land, which typically ranges from 30 lakhs to 1 crore rupees.
The total minimum investment required to open a petrol pump is 72 lakhs1.6 crore.
A truck should be arranged to transport 4000 litres of gasoline or diesel to the gas station.
Income for the petrol pumps business:
- At petrol stations, diesel income is generated.
- At petrol stations, the income is derived from the sale of gasoline.
As a result, the total income of the petrol pump business in the city is 4.2 lakhs per month, whereas in rural areas it is 2 lakhs per month.
Total profit of the petrol pump business
For rural areas, the monthly profit from the petrol pump business is 2 lakhs1.35 lakhs= 65000 Rs.
For the city side, the monthly profit for the gas pumps business is 4.2 lakhs1.95 lakhs= 2.15 lakhs per month.
- Which take into account the presence of free air in the environment.
- Working hours are displayed at the petrol station’s display.
- Names and phone numbers of oil company employees are displayed.
- For the sake of the general public’s safety… an emergency first-aid treatment Boxes, toilets, and safety equipment, such as fire extinguishers, are all required by law.
- Sand buckets, for example, are also available at retail locations.
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.
How can I open a gas station?
Example of Petrol Station Purchase Requirements
- The business is being sold for R 5 000 000.00, with a net profit of R 120,000 each month.
- Plus, there’s an R600 000.00 stock.
- Plus R 500 000.00 in working capital.
- Other: e.g., training, application for a license, etc.
- R800,000 in fuel guarantee from the oil firm
- TOTAL REQUIREMENT FOR FUNDING: R 7 000 000.00
Wholesale costs
The second largest component, accounting for around 33% of the total, is the cost of wholesale petrol to the supplier, which is dependent on the price of raw materials such as crude oil and refining charges. Petrol prices fluctuate in tandem with oil prices, which are notoriously volatile. For example, after Russia invaded Ukraine last month, oil prices surpassed $100 per barrel, and prices have grown by roughly 80% in the last year.
How much gasoline does a gas station have on hand?
Underground petrol storage tanks usually come in capacities ranging from 2,000 to 100,000 litres. Because of their underground location, these tanks are less vulnerable to fire, explosions, theft, and impact damage. Underground gasoline storage tanks, as the name implies, take up relatively little above-ground space and require pipes for venting and access locations. For commercial forecourts, underground petrol tanks are frequently the best storage option.
For the vast majority of enterprises, however, above-ground storage tanks are preferable over subsurface tanks. Because subterranean petrol tanks necessitate extensive excavation, repairs are much more difficult and expensive, and leaks are more likely to go unreported, this is the case.