How to Open a CNG Gas Pump in India – Starting a fuel business like a petrol or CNG gas pump can be a profitable and low-risk option. This is mainly because CNG gas is pollution-free and safe for the environment. CNG stands for Compressed Natural Gas, meaning natural gas pressed together to be used as fuel. It’s good for the environment and also helps users save money.
To open a CNG gas pump, companies have some conditions you need to meet. With an investment between 30 to 50 lakh rupees, you can start this business. If you’re thinking about starting a CNG pump, this article will guide you step-by-step. It explains how to apply online or offline to open your own gas pump.
How to Open a CNG Gas Pump in 2025?
CNG gas is the third most used fuel after petrol and diesel. It’s a type of natural gas used as fuel for vehicles. Compared to petrol and diesel, CNG is cheaper and cleaner. To open a CNG gas pump, you need to get a dealership from an authorized company. If you have your own land, you can apply for a CNG pump dealership. You’ll need to make a good investment for this.
Many companies in India offer CNG dealership chances. They regularly publish ads inviting candidates to apply. You must meet the company’s criteria to get a license. After approval, you can start your own CNG gas pump. This business can earn you lakhs of rupees every month.
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Companies Offering CNG Pump Dealership
Here are some major companies in India that offer chances to open CNG pumps:
- GAIL India Limited
- Indraprastha Gas Limited
- Mahanagar Gas Limited
- Maharashtra Natural Gas Limited
- Hindustan Petroleum Corporation Limited
- Indira Bright Petroleum Private Limited
- Gujarat State Petroleum Corporation Limited
How Much Does It Cost to Open a CNG Gas Pump?
If you plan to open a CNG gas pump, you should know the related costs. The price mainly depends on the location of your land. A city-center location usually costs more. If your land is near a highway or outside the city, the cost can be from 30 to 50 lakh rupees. Even if you don’t own land, you can open a CNG pump on rented land.
On average, setting up a CNG gas pump may cost at least 30 lakh rupees and can go up to 1 crore rupees depending on several factors.
Benefits of Opening a CNG Gas Pump
- CNG gas causes less harm even if accidents happen, compared to petrol or diesel.
- CNG vehicles run quietly and help reduce noise pollution.
- Using CNG lowers air pollution compared to petrol and diesel.
- CNG helps reduce dependency on petroleum products.
- Cost of setting up a CNG gas pump is usually lower than petrol pumps.
- Risk of fire is less with CNG since its ignition temperature is 600°C, higher than petrol and diesel.
- CNG is cheaper for users than petrol and diesel fuels.
- Engines running on CNG make less noise, lowering overall noise pollution.
Suitable Land for Opening a CNG Gas Pump
Before applying to open a CNG gas pump, you should know the land requirements:
- The land or plot must be free from legal troubles.
- You should either own the land, have a lease or rent agreement, or get a no-objection certificate if a family member owns it.
- Setting up a CNG pump on agricultural land is not allowed; such land must be changed to non-agricultural use.
- The land should connect with a road or national highway.
- Plots near the company’s transmission lines are preferred.
- For small vehicles, at least 700 square meters of land with about 25 meters frontage is needed.
- For large vehicles, 1500 square meters with 50 meters frontage is required.
- Some companies require 1600 square meters with a 35-meter front for CNG pumps.
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Eligibility Criteria to Open a CNG Gas Pump
- Applicant must be an Indian citizen.
- Age should be between 21 to 60 years.
- Minimum education is 10th pass; some companies prefer graduates.
- Priority is given to candidates with entrepreneurship skills and knowledge of safety rules.
How to Apply Online to Open a CNG Gas Pump?
To open a CNG gas pump, visit the official website of companies offering dealership. They regularly publish ads for new dealership chances. Keep checking these sites to apply online. When your application is accepted, you can go ahead to open your own CNG gas pump.
How to Apply Offline for a CNG Gas Pump?
If you want to apply offline, visit the nearest office of the company offering CNG pump dealerships. There, you can get detailed information about the application process and submit your form in person.
Starting a CNG gas pump can be a profitable business with good returns while helping promote a cleaner environment. If you meet the criteria and have the right land, think about applying to open your own CNG gas pump in 2025.