CNG is a cheaper and eco-friendly alternative to petrol and diesel. More vehicles switch to CNG, demand will rise, creating profitable business opportunities for CNG pump dealerships. CNG is produced in India as a by-product while processing crude oil into products like petrol, diesel, and kerosene.
Profit Margins and Investment
- The profit margin on CNG is almost double the actual production cost.
- An investment of about Rs 75 lakh, including license fees and pump costs, is needed to start a CNG station.
- CNG pumps can generate steady income depending on the number of customers and fuel prices.
You can open a gas station in any state of the country because vehicles are used by people in every state. The demand for CNG sold through gas stations is present in every corner of the country and is expected to increase in the future.
Investment Details
- To open a CNG pump, applicants invest Rs 75 lakh, including license fees and pump costs.
- Approximately 1200 sq meters of land with a 35-meter frontage is required for a CNG pump setup.
- Companies like Nexgen Energia offer dealership opportunities to meet the growing demand for CNG stations.
Mahanagar Gas is a renowned brand, and securing an agency for a CNG station can be a profitable investment, especially in a rising market.
Investment Considerations
- The investment cost, area required, and ROI details vary for Mahanagar Gas CNG dealership.
- ROI depends on the location of the CNG station, with better returns expected for stations catering to commercial vehicles, such as those located on highways.