Which is Better between CNG Pump Dealership and Petrol Pump?
Starting a fuel business in India is often seen as a stable and profitable venture. Traditionally, petrol pumps dominated this space, but with the growing adoption of Compressed Natural Gas (CNG), entrepreneurs are now comparing whether to invest in a CNG pump dealership or a petrol pump . Let’s look at the differences in terms of investment, demand, profit margins, and long-term potential. 1. Investment Requirements Petrol Pump: Setting up a petrol pump requires a large investment. Depending on the location and oil company (IOCL, BPCL, HPCL), the investment can range from ₹1 crore to ₹3 crore or more. This includes land, construction, tanks, dispensers, licenses, and working capital. CNG Pump Dealership: A CNG station setup can cost ₹2 crore to ₹4 crore depending on land, compression equipment, and storage. The cost is high because of specialized equipment like compressors and cascades. However, in some partnership models with city gas distribution (CGD) companies, t...