What is the profit margin of petrol pumps in India?

“The dealers’ margin for petrol and diesel has been revised. It is approximately 9\% to 43\% in petrol and 11\% to 59\% in diesel,” he said. Low volume dealers shall get maximum increase in commission in terms of percentage and paisa per litre.

What is the margin in petrol pump?

At 6 per cent, the dealer margin will be around Rs 6 a litre on petrol, and Rs 5.5 a litre on diesel in most parts of the country. The exact margin for a dealer varies as per a graded formula with a higher margin for those pumps with lesser sales and in rural areas.

How much profit do petrol stations make per litre?

The ACCC estimates that over the last 12 years, after deducting those expenses, the wholesale sector made an average annual net profit across all fuels of 1.7 cents per litre.

How much is the commission for petrol pump?

Central excise duty of Rs 17.98 per litre, dealer commission of Rs 3.54 per litre and state VAT of Rs 14.98 per litre bring up the retail price of petrol to Rs 70.44 per litre in India, whereas the dealer price remained Rs 33.94 per litre as on 1st July 2019, according to the data provided in the reply.

How much petrol does a petrol pump sell per day?

On an average, every petrol pump sells almost five lakh litres of fuel, petrol and diesel both, every month. Vehicle owners buy almost eight thousand litres of petrol alone every day, assuming that equal number of petrol and diesel vehicles purchase fuel from the fuel stations.

Is Reliance Petrol Pump profitable?

The company is considered as one of the largest players in the industry of Oil and Gas. They have great financial stability and shows strong profitability every year as they do not compromise on their quality. Reliance has well-trained, knowledgeable and courteous pump attendants.

Do petrol stations make good profit?

There is a good reason why nearly all filling stations are shops as well; profit margins on petrol are, according to the industry, around 2\%, so they make most of their profits from overpriced sandwiches and drinks.

Is petrol pump business profitable?

Petrol pump business has always been considered one of the leading profit making businesses, not just in India, but globally as well. Besides, the Oil Marketing Companies (OMCs) are aiming to generate more viable opportunities in order to encourage the growth of petrol pump business in India in 2020-2021.

What is the profit margin of a petrol pump?

For a normal petrol pump the profit margin shows 1.8\% or so as a whole. It means selling of 1 litre of petrol incurs Rs. 1.8 profit margin. If for example a pump sells 400 Kilo-litre fuel and makes revenue of 10Lac. Is petrol pump a profitable business?

What is the total income of petrol pump business in India?

In rural areas the average minimum sales are 1500 litres per day. Commission per litre in rural area is 2.25 Rs. Therefore, 2.25*1500 = 3375 Rs /day and 101250 Rs/month. Therefore total income of the petrol pump business is 4.2 lakhs/month in city side and 2 lakhs/month in rural areas.

What is the margin of a petrol dealer in India?

In case of petrol pump, dealer gets margin for each litre of petrol or diesel sold. In 2008 on each litre of petrol absolute margin was 1.1 rs when prices were lower that what its tdy. On diesel the per litre margin was 70 paise.

What is the Commission of a petrol pump dealer in India?

In case of diesel the commission is around 1.19rs per litre (varies for every dealer) whereas for petrol the commission comes up at around 2rs per litre (varies) . So for example if a petrol pump dealer has a sale of 1.5 lakh litres of diesel and 0.5 lakh litres of petrol per month, his GROSS profit would be approx 2.79 lakh rupees.