How To Start A Fuel Delivery Business In India

An innovative idea that offers clients doorstep refuelling services is a fuel delivery firm. The majority of businesses offer websites and smartphone apps where you can place your order and monitor your gasoline usage and spending.
Fuel delivery services, as opposed to gas pumps, offer convenience and save time. Fuel can be ordered in remote locations without a nearby gas station. For instance, you can place a remote order for diesel for your colony generator.
However, it should be noted that due to government laws, only diesel can currently be transported in India, not gasoline.

Step 1: Get The Right Equipment

The Economic Times reports “India has about 200 million vehicles, the same as the United States, yet there are far fewer gas stations overall. According to general estimates, there are 60,000 fuel stations in the nation, which is one-third fewer than the 166,000 in the US.”
In addition to personal vehicles, diesel is also necessary for the operation of farm tractors, industrial generators, hospitals, schools, and other facilities.
The Economic Times article further states, “Due to the skyrocketing land prices, it is also practically and financially unfeasible to open 100,000 new gas stations. In reality, a CRISIL analysis from June 2019 found that if the current throughput levels are to be maintained, there is only room for around 30,000 fuel pumps.”
Opening a fuel delivery business is far simpler than opening a gas station. Additionally, the need creates a large market potential for Indian fuel delivery firms.

Step 1: Get The Right Equipment

Your potential clientele include hospitals, apartment and residential complexes, schools, taxi firms, and major corporations like OYO Hotels , Jaquar, Amazon, Wipro, Toyota, etc.

Investing Strategy

The norms and restrictions set forth by the government should be kept in mind when beginning a fuel distribution company. For your start-up, you must obtain permission from the government-run Petroleum and Explosives Safety Organization (PESO). For your business, you will need to obtain the necessary permits.
A significant investment is also needed for the start-up. Mobile Défense Units (MDUs) or specialized vehicles that will transport your fuel will require investment.

Process of Fuel Delivery

  • The commercial operations of a fuel delivery service are managed through a smartphone application.
  • After downloading the programme, the user must log in using their email address or another way.
  • After registering, the location-aware programme immediately pinpoints the location of the car in need of fuel.
  • They can each pin the place on the map if the vehicle’s position is different from where they are right now.
  • The gasoline supplier can find the user’s pinned destination using their own app.
  • Then, after stopping to refuel, the person will proceed to the user’s location.
  • The money is taken out of the payment method they used when signing up for the app.
Starting a fuel delivery service is not simple. The fact that you are entering one of the most competitive market categories must be accepted. To launch and run a successful firm, you must complete a number of tasks. In conclusion, beginning a fuel delivery business is challenging. Successfully starting a fuel delivery service requires overcoming a number of challenges. But after you’ve overcome them, your business will become a market phenomenon. Consequently, a sizable profit is made.