§1What this business is

You own and run two tanker trucks with drivers and helpers, and earn a rate per kilometre for carrying oil on contract — for oil marketing companies, refiners, chemical firms or government tenders. Tolls are mostly recovered from the client. Contracts set who pays for fuel, crew and insurance.

Capacity: Up to 20 trips a month per tanker, 480 trips a year for two; average one-way trip 225 km at ₹29 a km = ₹13,050 a round trip.

§2Is it right for you?

Who it is for

Someone with transport experience and links to oil depots or contractors.

Who it is not for

Someone without a contract lined up — idle tankers still pay EMIs.

Advantages

  • Oil companies and contractors need steady transport
  • Few staff
  • Government oil-company tenders give long contracts
  • Revenue grows with each added truck

Drawbacks

  • Very high vehicle cost and loan
  • Diesel price changes hit margins unless the contract covers them
  • Trucks idle without contracts
  • High accident and spill risk

Skills you need

  • Fleet operation and maintenance
  • Tender filing with oil companies
  • Driver management and safety
  • Contract negotiation

Why difficulty 4/5: Large loan on vehicles, contract dependence and safety risk.

§3Market

Who buys

  • Oil marketing companies and refiners
  • Chemical companies
  • Contractors working for government oil and gas companies

How it sells

  • Transport tenders from oil companies
  • Hire contracts with depots and contractors

Good to know

  • The report says contract terms vary by length, quantity and route, and set who pays fuel, crew and insurance.
  • Toll charges are assumed 95% recovered from clients.

§4Raw material & machinery

ItemQtyCost
Oil tanker truck, 6 tyres2₹50,00,000 for both, including GST and transport

From: PMEGP sample project report — Tank Truck (prepared by Udyami/Samadhan)

  • Diesel₹10.80 L in year 1 (half year), ₹25.96 L in year 5 in the projections
  • Tyres, repairs and consumables

From: PMEGP sample project report — Tank Truck (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam
  2. GST
  3. Vehicle registration certificate and insurance (the report lists them)
  4. Goods carriage permit from the RTO
  5. PESO approval for tankers carrying petroleum (Petroleum Rules)
  6. Fire/pollution clearances as required (the report)

We can do this registration for you

§6Schemes & subsidies

CGTMSE and Stand-Up India suit a ₹56.70 L service project. The report is in the PMEGP library, but PMEGP caps service projects at ₹20 L and limits some transport activities — confirm eligibility with KVIC or the DIC.

§7Money

How the investment is worked out: PMEGP sample report: 2 oil tanker trucks (6 tyres) ₹50.00 L including GST and transport + working capital ₹6.70 L = ₹56.70 L. Finance: own ₹14.20 L, bank loan ₹37.50 L, working capital limit ₹5.00 L.

Working capital: Working capital ₹6.70 L (bank limit ₹5.00 L): clients pay after about 1.5 months for trips and 3 months for tolls.

Year not printed; the projections start in 2019-20 — costs will be higher now.

How to prepare a loan file

§8Export potential

This is a domestic transport service; there is no goods export.

§9Risks — where people fail

  • Accidents and spills
  • Idle months between contracts
  • Diesel price rise
  • Late payments from clients

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working oil tanker truck hire business unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Oil Tanker Truck Hire Business?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Tank Truck (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.