Petrol Pump Business in Bangladesh: The best guide of 2025

Are you looking for information on how to start a petrol pump business in Bangladesh? Then this article is just for you.

The number of vehicles in our country and population growth are increasing daily. Petrol is required to move these vehicles.

People constantly use vehicles to move from one place to another. So the demand for petrol has increased tremendously due to the increase in vehicular traffic.

The petrol pump business can be very profitable and time-consuming. So today, I will discuss in detail what it takes to start a petrol pump business in Bangladesh.

Also, I will discuss the issues that need to be addressed in the petrol pump business in Bangladesh so that you don’t face any problems.

Petrol pump business in Bangladesh

To start a petrol pump business in Bangladesh, certain steps and documents must be completed. First, government approval and a license are required, which are to be obtained from Bangladesh Petroleum Corporation (BPC).

Land ownership and proper site selection are significant at the initial stage. A minimum prescribed amount of land is required for setting up petrol pumps, and the land should be in a location where vehicular movement is effortless.

Businesses must also obtain environmental clearance and fire service approval for fire safety. Power connections, security systems, and modern technology machines are essential for success.

Complying with these documents and regulations ensures the supply of capital required for initial investment. Find out more details below.

Petrol Pump Business Documents

To start a petrol pump business in Bangladesh, the following documents and approvals must be obtained:

Document	Description
Land Ownership Document	Proof of land ownership or rental agreement.
Land Development Tax Receipt	Copy of the latest land tax payment receipt.
Citizenship Certificate	Citizenship certificate provided by the local chairman or ward commissioner.
Trade License	Updated trade license from the relevant authority.
Tax Identification Number (TIN) Certificate	TIN certificate issued by the income tax department.
Income Tax Clearance Certificate	Certificate of income tax payment for the past two years.
Bank Solvency Certificate	Bank solvency certificate from within the last 3 months.
Copy of National ID	Attested copy of the applicant’s national ID.
Site Plan/Layout Plan/Design	Design layout of the petrol pump establishment.
Fire License	Fire safety license from the Fire Service and Civil Defense.
Environmental Clearance Certificate	Environmental clearance from the Department of Environment.
No Objection Certificate from Roads and Highways Department	No objection certificate from the Roads and Highways Department, if applicable.
Shop and Warehouse Layout	Design layout of the petrol pump’s shop and warehouse.
Employee Appointment Letters and Information	Names, positions, and appointment letters of employees engaged in the purchase/sale, use, and storage of petroleum products.

After collecting the above documents, apply for a dealership by contacting Bangladesh Petroleum Corporation (BPC) or the respective oil company.

Or, You can also contact BPC or the respective oil company office for detailed information about the application process and required documents.

Petrol Pump Business Profits and Benefits

Different vehicles powered by petrol are always on. That is, there is no word for winter, summer, or monsoon; all seasonal petrol pumps are in demand.

At present, the price of petrol in our country is very high. A high price usually leads to higher profits.

You can also do many other types of business, such as the petrol pump business. That is, at one opportunity, you will get some business benefits.

For example, you can earn extra income by running a petrol pump business, a restaurant, a fast food shop, or selling car goods.

Although the investment in the petrol pump business may be high, it can be profitable in the long run if managed strategically and in the correct location.

List of Fuel Purchases and Profits in Bangladesh

The list below presents the profit per liter or kilogram based on the current selling price and estimated purchase price of various fuels sold at petrol pumps in Bangladesh.

This information is taken from Bangladesh Petroleum Corporation (BPC) and Bangladesh Energy Regulatory Commission (BERC) websites.

Fuel Type	Buying Price per Liter/Kg (Taka)	Selling Price per Liter/Kg (Taka)	Profit per Liter/Kg (Taka)
Diesel	103.00 Taka	105.50 Taka	2.50 Taka
Kerosene	103.00 Taka	105.50 Taka	2.50 Taka
Octane	123.00 Taka	125.00 Taka	2.00 Taka
Petrol	119.00 Taka	121.00 Taka	2.00 Taka
LPG (12.5 kg Cylinder, per kg)	54.00 Taka	55.20 Taka	1.20 Taka

A brief calculation is provided for how much a petrol pump business owner would spend and earn in profit if they sold 100 liters or 100 kilograms of each fuel type daily.

Fuel Type	Total Buying Cost for 100 Liters/Kg (Taka)	Total Selling Price for 100 Liters/Kg (Taka)	Total Profit for 100 Liters/Kg (Taka)
Diesel	10,300.00 Taka	10,550.00 Taka	250.00 Taka
Kerosene	10,300.00 Taka	10,550.00 Taka	250.00 Taka
Octane	12,300.00 Taka	12,500.00 Taka	200.00 Taka
Petrol	11,900.00 Taka	12,100.00 Taka	200.00 Taka
LPG (12.5 kg Cylinder, per kg)	5,400.00 Taka	5,520.00 Taka	120.00 Taka

Note: The purchase cost and profit margin mentioned in the above table are approximate and subject to market volatility. Bangladesh Petroleum Corporation or the respective supplier should be contacted directly for accurate and up-to-date information.

Petrol pump business place

Choosing the right location for a petrol pump business in Bangladesh is very important, as it is the main foundation for the business’s success.

Generally, locations should be selected where traffic is high, such as along highways, commercial areas, or busy city streets. Placing petrol pumps along highways allows long-haul vehicles to easily refuel, which increases the number of customers.

Besides, if petrol pumps are installed on urban roads, local customers will come to buy fuel regularly.

Also, neighborhood competition, traffic flow, and permanent car parking facilities should be considered to ensure easy and safe service for customers.

Petrol pump businesses need space

There are specific policies for determining the size of land required to set up petrol pumps in Bangladesh. Generally, about 10 bigha (about 3.33 acres) of land is needed to set up a full-fledged petrol pump.

However, the amount of land may be more or less depending on the size of the pump, service range, and other facilities.

For example, setting up a model petrol pump may require about 10 bigha of land, which includes facilities such as a modern pharmacy, eatery, toilets, and restrooms.

When determining the amount of land, the rules and conditions prescribed by the local administration and Bangladesh Petroleum Corporation (BPC) must be followed.

Petrol pump business estimated investment

The estimated initial investment and cost of setting up a petrol pump business in Bangladesh is presented below:

Expense Type	Estimated Cost (Taka)
Land Purchase or Lease	2,000,000 – 10,000,000 Taka
Construction Cost (Pump Station, Office, Toilets, etc.)	3,000,000 – 10,000,000 Taka
Equipment (Fuel Dispensers, Underground Tanks, etc.)	2,000,000 – 5,000,000 Taka
Lubricant Store Setup	500,000 – 1,000,000 Taka
Fire Safety Equipment	200,000 – 500,000 Taka
Environmental Clearance and Other License Fees	200,000 – 500,000 Taka
Employee Training and Hiring	100,000 – 300,000 Taka
Initial Fuel Stock	1,000,000 – 3,000,000 Taka
Miscellaneous (Advertising, Inauguration, etc.)	100,000 – 300,000 Taka

• Total Estimated Cost: Approximately 9,100,000 – 25,600,000 Taka.

Note: Costs may vary based on location, land prices, construction quality, and other factors. For precise cost estimates, it is recommended that you consult local market experts and relevant authorities.

Petrol pump business essential machines

The petrol pump business in Bangladesh requires some essential machines and equipment, which help to ensure fuel distribution and safety. Below is the list of required machines:

Equipment	Description
Fuel Dispenser Machine	This machine accurately dispenses fuel (petrol, diesel). It’s the primary equipment for providing fuel to customers.
Underground Fuel Tanks	Underground tanks store fuel safely in large quantities.
Vent Pipes and Overflow Protection System	Vent pipes release gases or air from the tanks, while overflow protection systems prevent excessive pressure or overflow.
Fire Safety Equipment	Fire extinguishers, fire blankets, and other fire-prevention tools are essential for handling emergencies.
Air Compressor	An air compressor fills vehicle tires with air, an additional service for customers.
Emergency Shut-Off System	This system quickly shuts down the pump in an emergency.
Fuel Filtration System	A filtration system maintains fuel quality by removing impurities or harmful substances.
Electronic Price Display Board	An electronic display board clearly shows customers the fuel prices.
CCTV Cameras and Security Systems	CCTV cameras and other security systems ensure constant monitoring for safety.
Fuel Measurement Equipment	Fuel measuring devices check fuel levels and conduct routine inspections.

These machines and equipment are essential to keep petrol pump operations safe and efficient.

Address to buy petrol pump equipment

Here are the addresses of several trusted companies that supply equipment and machinery for petrol pumps:

Supplier Name	Website	Address
Europump International	europump.com	Dhaka, Bangladesh
Roads and Highways Department	rhd.portal.gov.bd	Dhaka, Bangladesh
Meghna Petroleum Limited	mpl.gov.bd	Chattogram, Bangladesh
Padma Oil Company Limited	pocl.gov.bd	Chattogram, Bangladesh
Jamuna Oil Company Limited	jamunaoil.gov.bd	Chattogram, Bangladesh

• Europump International is a trusted company for the procurement of equipment and machinery for your petrol pump business. They are international manufacturers and suppliers of LPG, Petroleum, and CNG appliances.
• Besides, Meghna Petroleum Limited and Padma Oil Company Limited are two major petroleum companies in Bangladesh that provide essential equipment and services for petrol pumps.

Apart from this, various industrial areas of Dhaka, such as Tejgaon, Gabtali, and Narayanganj, provide petrol pump equipment and machinery companies. To select the right supplier, you can directly contact the companies to get an idea about the quality of their products and services.

Know more: Top 10 Restaurants to Eat in Dhaka

Petrol pumps operation rules

The authorities have rules and recommendations for the smooth running of the petrol pump business, which ensures the company’s safety and efficiency.

Below are all the rules and regulations, please read them carefully:

Topic	Description
Licensing and Authorization	Approval and a license must be obtained from Bangladesh Petroleum Corporation (BPC) or related oil companies to set up petrol pumps. These licenses are usually granted for a fixed period and must be renewed regularly.
Security Measures	Fire safety and other emergency measures are mandatory to ensure the safety of petrol pumps. The authorities guide the selection of the proper location of pumps, maintenance of a safe distance, and placement of fire-fighting equipment.
Environmental Compliance	The Department of Environment requires environmental clearance to set up petrol pumps. This ensures that the pump’s installation has no adverse impact on the surrounding environment and minimizes pollution.
Fuel Storage and Distribution Rules	Fuel storage and distribution at the pump must be safe. Periodic checks of underground tanks, leakage prevention measures, and prescribed equipment for dispensing are also required.
Minimum Price Set	The Government fixes the price of petroleum products. Levying additional charges beyond this price is prohibited, and the sale of goods is directed at the price fixed by the Government.
Customer Service and Transparency	Authorities are monitoring the quality of customer service, such as controlling irregularities in fuel metering and training staff to provide proper customer service.
Regular Inspection and Monitoring	The Government regularly monitors fuel quality, machine performance, and safety measures. Irregularities may result in fines or license cancellation.
Reporting and Documentation	Specific reports are mandatory for business activities. E.g., Regular maintenance of sales, inventory, and supply-related reports. This information may be provided at any time by the authorities.
Complying with Government Laws and Regulations	Complying with various rules and regulations of the local Government, oil companies, and the Department of Environment is essential for running the business smoothly and maintaining a good relationship with the Government.

Following these rules and tips makes running a petrol pump business easier, fairer, and safer.

Petrol Pump Business Future and Challenges

The prospects of the petrol pump business in Bangladesh are very bright. As the number of vehicles increases, the country’s demand for fuel increases, which increases the investment potential in this sector.

While fuel demand is met in urban areas, new petrol pumps could be set up in rural areas.

Moreover, using modern technologies such as digital payments, fuel metering devices, and CCTV monitoring will help improve the quality of service.

Adding charging stations for electric vehicles and additional services such as convenience stores, car washes, and cafes can create new revenue streams.

These advantages can provide a competitive advantage in the petrol pump business in the future.

But this business also has some challenges. The rise in popularity of electric and hybrid vehicles could reduce demand for petrol and diesel, which could affect earnings.

Entry of new petrol pumps and large companies into the market is increasing competition, which limits profits. In addition, compliance with environmental policies and regulations increases operating costs and sometimes hurts business.

Fuel prices are set by the government, which can limit profits. Due to dependence on oil supply companies, supply disruptions can harm business.

It can increase business potential by addressing these challenges through proper planning and adding modern services.

Conclusion

Finally, the petrol pump business in Bangladesh is a promising sector but has some challenges.

Growing demand for energy, especially in rural areas, and the potential for adding convenience stores and electric vehicle charging stations could make investment in the sector lucrative.

However, it is essential to comply with various government regulations and environmental directives and be prepared for changes in demand due to the increased use of electric vehicles.

Petrol pump dealers can position themselves in a competitive market by applying modern technology, ensuring high safety standards, and increasing customer service standards.

Proper planning and adaptation make it possible to build a sustainable and profitable business in this sector in Bangladesh.

In this article, we have discussed the petrol pump business in Bangladesh in detail; if you find the article helpful and need to know anything, please comment. Thank you so much for being with us!

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