What is fuel supply chain logistics in India?

A B2B digital marketplace connecting transport fleets, construction sites, and industrial SMEs with certified fuel wholesalers and refineries. Operators lock in prices, guarantee supply within 24–48 hours, and avoid fuel shortage disruptions—critical in volatile geopolitical energy markets like 2026.

How much does it cost to start a fuel logistics business in India?

₹40–60 lakh for MVP: app development (₹12 lakh), logistics software (₹15 lakh), regulatory licenses from Ministry of Petroleum (₹8 lakh), working capital (₹20 lakh), team (₹5 lakh). Scale to ₹2–3 crore for multi-city ops.

Is fuel logistics profitable in India?

Yes. At scale (₹50–100 crore annual fuel volume), 2–3% margin = ₹1–3 crore gross profit. Subscription models add recurring revenue: 500 fleet subscribers × ₹10,000/month = ₹5 crore ARR. Margins 35–40% after logistics/tech costs. Market growing 12–15% CAGR due to oil price volatility.

What regulations apply to fuel logistics in India?

Petroleum Act 1934 (wholesale/retail licenses from Ministry of Petroleum); GST 5% on fuel (input credit on logistics); EIA 2006 clearance if handling >1,000 kL/day; RBI oversight for payment fintech; PUC for delivery vehicles; storage facility safety certifications from local fire department.

Fuel Supply Logistics Business India 2026 — Energy Crisis

AI SummaryIndia's fuel logistics sector, valued at ₹45,000–60,000 crore annually, faces acute disruption due to geopolitical energy crises (Iran-Israel tensions, $114/barrel oil in March 2026). B2B fuel supply aggregators offering price-locked, guaranteed delivery to transport fleets and industrial SMEs can capture 2–3% margin on ₹50–100 crore transaction volumes, generating ₹1–3 crore profit annually. This opportunity is ideal for logistics entrepreneurs, tech founders with supply chain expertise, and former petroleum industry professionals seeking to modernize India's fragmented fuel distribution network.