How to open a petrol pump in Pakistan: the steps

Short answer: in Pakistan you open a petrol pump as a dealer of an oil marketing company (OMC), such as PSO, Shell, Attock, Total Parco or Hascol. You apply to the OMC with suitable land; the OMC and you obtain the NOCs from the district administration, explosives, environment and the highway or road authority; the site is built and inspected to OGRA's standards; then fuel supply starts. Your income is the dealer margin per litre, which the government sets, minus your running costs.

The exact papers and fees differ by company and district, and they change, so treat this as the path to follow and confirm each step with the OMC's territory office.

1. Choose the company and the site

Each OMC has its own territory managers, requirements and support. Call two or three, tell them where your land is, and ask:

• what size and frontage they need;
• who pays for the tanks, dispensers and canopy (some OMCs invest, some ask the dealer to);
• the security deposit and any fee;
• the supply terms and credit days.

Road frontage, visibility and traffic decide sales. A site on the outgoing side of a busy road usually beats one in a quiet street, however cheap the land.

2. NOCs and approvals

Expect to need no-objection certificates from the district administration and other departments (explosives for fuel storage, environment, and the road authority for the access road), plus building approval. The OMC usually guides you through the list for your district. Retail sale can start only after the storage is built and inspected to OGRA's technical standards.

3. Build and equip

Underground tanks, dispensers (nozzles), canopy, office, washroom and fire safety equipment. For CNG you also need a gas connection and compressor approvals. Keep every invoice: you will need them for the OMC and for your own depreciation.

4. Understand the money

• Dealer margin: a fixed amount per litre, set by the government and revised from time to time. Check the latest notification; it changes with the price revisions.
• Running costs: staff (attendants per shift), electricity and generator, bank and card charges, maintenance, and the OMC's charges.
• Hidden losses: evaporation and dip shortage, cash short from attendants, and fleet customers who pay late.

A pump makes money on volume. Before you invest, estimate litres per day at your site honestly; the OMC's territory office usually has figures for nearby pumps.

5. Run it tightly from day one

The money leaks at a pump are well known: an attendant's cash short, meter readings not checked at shift change, tank dip not matched with sales, and fleet credit that grows every month.

Petrol pump software takes the nozzle meter at the start and end of every shift, works out the litres and the cash each attendant owes, handles rate changes in the middle of a shift, matches tank dips and tanker receipts, and keeps fleet credit with a monthly statement for each company. Our guide on daily sale from meter readings shows the arithmetic.

Start free and set up your nozzles and shifts before the first litre is sold.