How to Start Hindustan Petroleum Dealership in 2022

Hindustan Petroleum Dealership

How To Start Hindustan Petroleum Dealership In 2022

The only commodity in the world that has seen a constant surge of demand in contrast to the increasing hike of its price is Fuel. Usually, the market runs with the principle, ‘higher the price, lower the demand’ and vice-versa, however, in the case of the petroleum industry it is always an advantage for the petrol pump owner, as the demand keeps on increasing with the increasing number of vehicles on the road. When it comes to the Petroleum industry, there are many franchises that are available in the market such as Reliance, Bharat Petroleum, however, the one that stands out among its competitors is Hindustan Petroleum Franchise.


About Hindustan Petroleum Dealership


Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company. It has more than 20000 + petrol pumps all across the country and also in various corners and rural regions of the country. Reports suggest that it contributes more than 25% of the market share in the public sector companies. In fact, HPCL was ranked 367th on the Fortune Global 500 list of the world’s biggest corporations in 2016. HPCL does not just deal in the fuel or petroleum industry but it also has its own different channels such as LPG, this just adds more credibility to the brand.


With more than 21 zonal offices in the urban cities and around 130 regional offices, it has developed a noteworthy infrastructure that makes it possible for them to excel in the respective industry. Laal Ghoda, HP Milcy, Thanda Raja, Koolgard, and Racer4 are all known brand names that are a part of HP Lubes. As compared to most of the petrol pumps in India, HPCL offers its dealers or petrol pump owners to sell multiple products apart from Petrol and diesel, which gives all the business owners a chance to earn more profit.


Advantages of Starting Hindustan Petroleum Dealership in 2022

Although the brand name itself gives enough credibility to an individual to earn profit, there are more factors to be considered and to be known to an individual before starting an HPCL dealership. With huge competitors such as Reliance petroleum, BPCL, the USP’s of HPCL can help an individual to avoid and overcome the competition. The various advantages of starting HPCL Dealership are mentioned as follows.

  •  As mentioned above, even after a hike in the price of Petrol and diesel, the demand for the same has not been decreased, in fact, there has been no change at all in the graph scale. This is mainly because the urge and the necessity to run a vehicle is high among people for their routine and comfort. This is the same reason why as a Franchise unitholder, you never have to worry about a circumstance where you could be out of business because of increasing prices.


  • The significant advantage of having a HPCL petrol pump is that it is owned and controlled by the government itself. Many a times, there are various policies and factors of the government that might disturb or affect the private players in any industry and impact the scale of the business. However, being government-controlled, you as a Franchise holder have nothing to worry about any of the above-mentioned facts, instead, you are under the wing of the government itself.


  • The vehicles on road keep on increasing every year, every month, in fact, every day. The more vehicles that run on the road, the more sales you incur as a petrol pump owner. Apart from petrol and diesel, you can also provide various services that come along with the HPCL franchise, this becomes another source of revenue that you can take advantage of in your petrol pump.


  • Lastly, being backed by the government itself as well as the huge and long-standing brand name of Hindustan Petroleum Corporation Limited, you have a great advantage. All it needs for a Franchise unitholder to ensure good profits is to find a good location for the petrol pump. Having your petrol pump at a busy location, or near a highway can ensure you a great demand of vehicles and ultimately good business.


Investment Required for Starting HPCL Dealership in 2022

The investment for starting HPCL Dealership would depend on the type of land that is being chosen or used by the individual as the cost associated with every different type of land varies as per the location. The dealership fee would vary between 5 Lakhs INR to 15 Lakhs INR, as per the location. The other costs associated would be with the infrastructure and all the miscellaneous expenses that come along with it.


Requirements for Starting HPCL Dealership in 2022


As it is a government-controlled company, you are required to meet with certain eligibility criterions to be qualified enough to have a petrol pump of HPCL. The various requirements for starting HPCL Franchise are mentioned as follows.

  • The location is at most of the times set up by the company itself. However, the potential location should always be near highways and semi-urban areas or the main roads. As for the rural, it can be any important rural roads, that connect to the main network.


  •  According to the Ministry of Petroleum & Natural Gas, oil companies provide reservation for various categories. This is a part of the marketing plan of HPCL.


Scheduled Caste (SC)/Scheduled Tribes(ST): 25%
Physically Handicapped Persons: 5%
Paramilitary/Police/Govt. Personnel: 8%
Defence Personnel: 8%
Freedom Fighters: 2%
Outstanding Sports Persons: 2%
Open: 50%

Additionally, the company reserves 33% locations in each category for women belonging to that category.


How to Apply for HPCL Dealership in 2022


The easiest way to apply for HPCL Franchise would be to visit their official website and scan through all the details and the licenses that would be required. You would be led to an application form which would be available in the form of a PDF. After filling the form, you would be contacted by the representatives of the brand if you are eligible for the same. The official website of HPCL is mentioned as follows.



 It is to be done by the potential candidate and not the company.

It would vary as per the location; it is best to ask the representatives of the brand itself.

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