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How to Open a Petrol Pump in Pakistan Requirements, Cost & Process

A petrol pump needs three approvals: an oil marketing company, the district administration and the Department of Explosives Form K licence. Here is what each one asks for, what it costs and how the construction is approved.

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Petrol Pump Basics

Who Approves a Petrol Pump in Pakistan?

A petrol pump is set up together with an Oil Marketing Company (OMC) such as PSO, Shell, TotalEnergies, Attock or GO. The OMC supplies the fuel and files the licence application. The Deputy Commissioner issues the site NOC after the revenue, highways, traffic police, civil defence and municipal departments report on the site.

The Department of Explosives then approves the plan and issues the Form K licence for storing fuel in underground tanks connected to dispensers. Most petrol pump cases are forwarded to its Head Office in Islamabad for approval.

Site Requirements

Before You Buy or Lease

  • Owned land or a registered lease (PSO asks for at least 20 years remaining)
  • Safe distance from schools, hospitals and homes
  • No natural gas main within 50 feet
  • Road frontage with safe entry and exit
  • Soil and water table suitable for underground tanks
  • Forecourt area of typically 500 to 1,000 m²
  • Clear site plan attested by the DC office
  • OMC
  • DC NOC
  • 50 ft Rule

Form K Documents

Filed Through the OMC

  • Formal application of the oil marketing company
  • Valid, registered land lease agreement
  • Original DC NOC with attested site plan
  • Proposed plan of the petrol pump facilities
  • Application Form D, filled in and signed
  • Treasury challan of Rs. 6,000 per product
  • Extra fees for a tuck shop, ATM or service station
  • Form K
  • Form D
  • Lease

Petrol Pump Approval, Step by Step

  • Step 1: Sign up with an OMC and get its site survey and letter of intent
  • Step 2: Check the plot against distance and access rules
  • Step 3: Obtain the Deputy Commissioner NOC
  • Step 4: The OMC files the Form K documents with the Department of Explosives
  • Step 5: The plan is approved and an approval letter is issued
  • Step 6: Build tanks, dispensers, canopy and forecourt within six months
  • Step 7: A qualified engineer signs the safety and completion certificate
  • Step 8: Explosives inspection, then the Form K licence is issued
Petrol pump canopy construction in progress in Pakistan
Keep Reading

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Petrol Pump Cost in Pakistan

How much does it cost? The total cost of opening a petrol pump in Pakistan, including the petrol pump licence, NOCs, tanks, dispensers and construction, is usually about Rs 3 to 4 crore. The final figure depends on the location, the tank capacity, the oil marketing company and the civil works.

Most of the cost of a petrol pump is the land, the underground tanks (typically 20,000 to 50,000 litres each), the dispensers, the canopy and the civil works. The licence fees are small by comparison: the Department of Explosives charges Rs. 6,000 per product, plus Rs. 35,000 for a tuck shop and Rs. 5,000 each for a tyre puncture shop, ATM or service station. Construction usually takes four to six months.

For a quote on your site, see our petrol pump construction and Form K service, or read the Petroleum Rules 1937 guide to see how fuel storage is licensed.

Sources: Department of Explosives, Government of Pakistan licence process documents; Petroleum Act 1934 as amended in 2023. General information, not legal advice.

How to open a petrol pump in Pakistan - new station forecourt with cars fuelling
Common Questions

How to Open a Petrol Pump in Pakistan: FAQs

How much does a petrol pump licence cost in Pakistan?

The petrol pump licence itself is cheap: the Department of Explosives charges Rs. 6,000 per product in Form K, plus small fees for a tuck shop, ATM or service station. The total cost of opening a petrol pump in Pakistan, with NOCs, tanks, dispensers and construction, is usually about Rs 3 to 4 crore, depending on the site and the oil marketing company.

No. The Form K application is filed by the oil marketing company that will supply the station, so the first step is an agreement with an OMC.
No. A valid registered lease is accepted. Each oil marketing company sets its own minimum lease period; PSO, for example, asks for at least 20 years remaining.
The NOC and approvals take several months, and construction usually takes four to six months after the plan is approved.

Planning a Petrol Pump?

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