How Much Does a Petrol Pump Owner Earn Per Litre in India? Here’s the Full Breakdown
How Much Does a Petrol Pump Owner Earn Per Litre in India? Here's the Full Breakdown
In Delhi, dealers earn ₹4.40 per litre of petrol and ₹3.03 per litre of diesel as commission—find out how it works
With petrol and diesel prices constantly making headlines, many people often wonder: how much money does a petrol pump owner actually make per litre of fuel sold? While the overall price you pay at the fuel station includes several components, like base price, taxes, and transportation—the pump owner earns a fixed dealer commission on each litre sold. And no, it’s not as huge a profit as most people assume.
As per the latest updates from IOCL and HPCL, petrol pump dealers in Delhi currently earn an average commission of ₹4.40 per litre of petrol and ₹3.03 per litre of diesel. These figures are regulated by oil marketing companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum, and are revised periodically. The amount of commission can vary slightly from state to state depending on location, fuel logistics, and other operational costs.
To give you a clearer picture, if the current price of petrol in Delhi is ₹94.77, it includes:
- Base fuel price
- Freight charges (transportation)
- Excise duty (central tax)
- VAT (state tax)
- Dealer commission (₹4.40)
So, out of the full price you pay at the pump, only a small portion less than 5%, actually goes to the dealer.
Do Petrol Pump Owners Make a Lot of Money?
While the commission per litre might seem low, consider that a busy petrol pump can sell thousands of litres a day. For example, selling 10,000 litres of petrol in a day would earn a dealer around ₹44,000 in commission. However, this has to cover staff salaries, electricity bills, maintenance, licenses, and other operational costs. Profit margins get tighter if fuel sales are low.
Other Income Sources for Dealers
Apart from fuel sales, petrol pump owners may also earn from:
- Nitrogen air filling stations
- Mini-marts or convenience stores
- Commission on lubricants and engine oils
- EV charging stations (in newer pumps)
- Advertising boards placed at the outlet
So while fuel sales provide a stable income, petrol pump profitability often depends on additional services and sales efficiency.
In conclusion, petrol pump owners don’t pocket most of what you pay at the pump. They earn a regulated commission, and success in this business depends more on high sales volume and diversified services than on per-litre profits.
