Chhattisgarh Removes State-Level License Requirement for Petrol Pumps — A Big Boost for Entrepreneurs

Major Policy Reform to Ease Business and Accelerate Fuel Accessibility in Rural Areas

RAIPUR — April 14, 2025 — In a landmark move to promote ease of doing business, the Chhattisgarh government has abolished the need for state-level licensing to set up petrol pumps (Petroleum Retail Outlets). From now on, entrepreneurs and fuel companies will only need to comply with central petroleum regulations, streamlining the entire approval process.

This decision, notified on November 14, 2024, by the Department of Food, Civil Supplies and Consumer Protection, is aimed at eliminating duplicate permissions and reducing bureaucracy.

What Has Changed and Why It Matters

Previously, setting up a petrol pump required a dual-approval system — one from the Collector through the state food department for a purchase and sale license, and another from central petroleum authorities. Licenses needed annual or triennial renewals, causing delays, costs, and excessive paperwork.

With the new policy, only central approval is required, significantly reducing time, cost, and red tape for aspiring fuel station owners.

Key Benefits for Entrepreneurs

• Simplified Licensing: Only central compliance is now necessary.

• Faster Setup: Reduced paperwork and time for approvals.

• Lower Barriers for Entry: Encourages small and medium businesses to enter the fuel retail sector.

• Expansion in Rural Areas: Boosts opportunities for petrol pumps in underserved regions, improving fuel accessibility.

Impact on the Public and the State

This reform is expected to increase fuel availability across the state, especially in remote and rural areas. The improved access to petrol and diesel will lead to better mobility, enhanced logistics, and economic activity in regions where fuel stations were previously scarce.

Additionally, the rise in new outlets will spur investments, create jobs, and drive infrastructure growth in Chhattisgarh.

Government’s Vision for Business Growth

Chief Minister Vishnu Deo Sai emphasized the state’s commitment to creating a business-friendly environment. By removing unnecessary hurdles, Chhattisgarh is working to attract investments, facilitate ease of doing business, and deliver better services to its citizens.

This policy shift not only empowers entrepreneurs but also aligns with the state’s larger goals of economic development and industrial growth.