Excel Templates For Indian Oil Petrol Pump
- Excel Templates For Indian Oil Petrol Pump Dealership
- Excel Templates For Indian Oil Petrol Pump Dealership Advertisement 2018
The new retail-branding template introduced by IndianOil set in motion a revolution in the. Complete vehicle care begins at an IndianOil XtraCare petrol pump. This workbook file is designed to assist facility operators in their monthly fuel. 14, CLOSING METER: Record daily pump meter readings at the end of the day.
Petrol Pump businesses are very low margin businesses. The net profit percentages can vary between 0.5% to around 1% depending on how one manages employee salaries, expenses for current/power consumption, credit to bulk buyers such as truck and bus owners, and interest on working capital. There is also revenue from commission paid for transportation of fuel from the fuel depot to the pump (approx. Rs. 3 per km/kl).
As of August 15th, 2015, commission on diesel is approximately 2.5% of sale price and for petrol is slightly higher than 3%, so essentially that would be gross profit. I'll try to break down the revenue and costs a little more.
Commissions are published at Prices:Petroleum Planning & Analysis Cell
Let's assume a decently run petrol pump sells 400KL (Kilo Litres) of Diesel and 100KL of Petrol. Also, let's assume that his petrol pump is about 100 KM from the fuel depot.
Additionally, even in most dealer managed petrol pumps, capital investment for building, underground pumps, fuel stations, sign boards, canopy are made by the oil marketing company, therefore initial capital investment if any is small.
Revenue (based on commission % as on Jan 2016)
1. Commision from sale of petrol = 100 x 2280 = 228,000
2. Commission from sale of diesel = 400 x 1428 = 571,200
3. Commission on transportation of fuel = 500 x 100 x 3 = 150,000
4. Lease of Land to the Oil Marketing Company = 20,000
Total Revenue = 969200 (approx. 9.7 Lakhs)
Expenses
1. Salaries (approx. 20 employees at approx. Rs. 12000 per employee, includes people who fill, managerial staff running 2 shifts, and truck driver and cleaner ) = Rs. 250,000
2. Electricity = Rs. 50,000 (the fuel pumps are real energy suckers)
3. Monthly Interest on Working Capital Requirement of 40Lakhs (for fuel cost, credit, etc.) at 12% = 40,000
4. Interest on Truck Purchase and Maintenance= Rs 30,000
5. Loss of fuel during transportation (50 litres per truck load and 20 trips) = 1000 x 50 = 50,000
Excel Templates For Indian Oil Petrol Pump Dealership
6. Fuel Transportation expenses (besides driver and cleaner salaries) = Rs. 50,000
Excel Templates For Indian Oil Petrol Pump Dealership Advertisement 2018
7. Misc. expenses (maintenance, accounting, etc.) = Rs 25000
Total expenses are about 5 Lakhs.
Approx. pre tax profit = Rs. 4 - 4.5 Lakhs per month.
Given the above, the annual net profit can be Rs.50 Lakhs and post tax profit approx., Rs 35-40 Lakhs.
While the number may sound quite rosy, several petrol pumps are poorly managed, in terms of credit recovery, over draft management, etc., which typically brings down the profit margins even further. Additionally, if the owner does not have the financial wherewithal to manage the working capital and give sufficient credit for bulk buyers, his sales tend to go down even further.
Petrol bunk ownership is typically for the well-connected and is largely a 2nd business for the proprietor.