How Much Do Petrol Pump Owners Earn Per Litre? A Closer Look at Their Income Model
New Delhi: While electric vehicles are slowly carving out a space in India’s automobile landscape, the nation’s roads remain dominated by petrol and diesel-powered vehicles. Despite the recent stability in fuel prices, many still recall the not-so-distant days when petrol rates would fluctuate almost daily. Yet, amidst all the discussions around fuel pricing, one key question often goes unnoticed: how much do petrol pump owners actually earn from each litre sold?
Petrol in India arrives as crude oil and undergoes a complex refining process before it reaches retail fuel stations. The final price paid by consumers also includes additional costs such as transportation, entry taxes, and logistical expenses. Once all of these are accounted for, what remains is the dealer’s commission.
Currently, petrol pump dealers earn an average commission of ₹3.66 per litre on petrol and ₹1.85 per litre on diesel. These rates are subject to change and are revised periodically by the central government based on market dynamics and policy decisions.
To put this into perspective, consider a small petrol pump that sells about 1,000 litres of petrol each day. At the current commission rate, the daily earnings from petrol alone would be:
1,000 litres x ₹3.66 = ₹3,660
Assuming similar sales every day, the monthly income from commissions would total:
₹3,660 x 30 = ₹1,09,800
While this gives a fair idea of the revenue stream, it’s important to note that this is not pure profit. Operational expenses such as employee salaries, electricity bills, regular maintenance, and taxation significantly reduce the net earnings.
Nonetheless, this breakdown offers valuable insight into the business model behind running a petrol pump in India—an industry that continues to fuel the country’s mobility while standing at the cusp of a future driven by cleaner alternatives.
