Petroleum Pump Case

Assumptions
The country XYZ is a devolving country which is comparable to the state of Karnataka which has
a population of around 6 crore
The calculations are based on the vehicle data of a Karnataka
There are no diesel driven bikes and 3 Wheelers
There are no petrol driven Heavy Motor Vehicles
Half of the HMVs are government run busses and they dont procure fuel from petrol stations
Here is the table for the average fuel consumption of different vehicles
Petrol Diesel

2 wheeler .5 litres -

3 wheelers - 10 litres

4 wheelers 5 10

Others - 40
Details of the Vehicles in the market
Vehicle Type No of diesel driven No Of Petrol Driven
vehicles vehicles
2 Wheeler NIL 11500000
3 Wheeler NIL 30000
4 Wheeler 2300000 1900000
HMV 2200000 NIL
Fuel requirement per day
Type of Vehicle Diesel Petrol
2 Wheeler Nil 5750000
3 Wheeler Nil 60000
4 Wheeler 11500000 19000000
HMV 44000000 NIL
TOTAL 55500000 24810000
Market for a single petrol pump
There are 3000 petrol pumps already
The per litre price of petrol is Rs.75 and of diesel is Rs.60
The total market for petrol is Rs.1860750000
The total market for diesel I Rs. 3330000000
The average per pump market is 1730000
The commission varies from 2-2.5% per litre of petrol so per month commission per pump is
around 12L
Per Month Expenses
Salary of 5 employees Rs.10k per month per employee
Maintenance of the pump Rs.100k
Fuel Transportation expenses- Rs.50k
Miscellaneous expenses- Rs.50k
The operating of the petrol pump would come around 9.5l per month
Expenses for infrastructure
Land Expense-20l
Machinery of 10l each for Petrol and Diesel machine which includes the cost of underground
storage
Building construction -20L
Canopy Construction -5L
Driveway Construction- 5L
Total expenses is approximately 70L