How Much Do Petrol Pump Owners Really Earn Per Litre? A Look Into the Business Behind the Nozzle
How Much Do Petrol Pump Owners Really Earn Per Litre? A Look Into the Business Behind the Nozzle
While electric vehicles are slowly gaining popularity in India, the majority of cars and two-wheelers on the road still rely on petrol and diesel. Although fuel prices have remained somewhat steady recently, we all remember the days when petrol rates would change almost every morning. But one question that rarely comes to mind is: how much do petrol pump owners actually earn from each litre they sell?
The price you pay at the pump isn’t just about the fuel itself. Petrol arrives in the country in crude form and undergoes a refining process before reaching the pumps. Along with refining, other costs such as transportation, entry tax, and additional logistics are all factored into the final price that consumers pay. But after all these expenses, what does the petrol pump dealer actually take home?
According to current estimates, petrol pump dealers receive a commission of around ₹3.66 per litre of petrol sold. When it comes to diesel, the commission is a bit lower—about ₹1.85 per litre. It’s important to note, though, that these commission rates are not fixed permanently. The central government revises them from time to time depending on policy decisions and market conditions.
To put things in perspective, let’s consider a small petrol pump that sells roughly 1,000 litres of petrol a day.
At a commission of ₹3.66 per litre, the daily earnings would come to:
1,000 litres x ₹3.66 = ₹3,660 per day.
If sales continue at this pace throughout the month, the monthly earnings would total:
₹3,660 x 30 = ₹1,09,800.
This simple calculation offers a clearer picture of how petrol pump owners earn their income. Of course, their actual profits would also depend on operational costs like staff salaries, electricity, maintenance, and taxes. Still, this gives a fair idea of the basic income model behind running a petrol pump in India.
