What is a Fuel Supply Chain Coordination Service in India?

A B2B software platform that coordinates fuel logistics between Oil Marketing Companies (BPCL, HPCL, IOCL), fuel depots, and retail outlets. It provides real-time inventory tracking, automated shortage alerts, and grievance logging to ensure uninterrupted supply of petrol, diesel, PNG, and LPG across states like Andhra Pradesh, addressing government mandates for supply continuity.

How much does it cost to start this business in India?

Initial investment: ₹8-15 lakhs (tech development, GST registration, initial team, servers). Monthly operational costs: ₹2-4 lakhs (cloud infrastructure, staff, customer support). No fuel industry license required; only standard GST registration (18%) applies to software services.

Is fuel supply chain coordination profitable in India?

Yes. With ₹850 Cr addressable market annually across Andhra Pradesh OMCs and potential expansion to other states, a B2B SaaS model charging 2-5% of logistics cost savings or ₹5-15 lakhs annual subscription per OMC can generate ₹3-5 Cr revenue at 10-15 OMC clients within 3 years, with 70%+ gross margins.

What regulations apply to fuel supply chain coordination in India?

Petroleum Rules, 2002 govern OMC operations; Bharatiya Logistics Data Highway (LDH) initiative mandates supply chain transparency; MEITY Guidelines 2021 apply to software service providers; GST Act 2017 Section 9 requires 18% GST on software services; GDPR-lite data privacy compliance required for customer data handling.

Fuel Supply Chain Coordination Software India 2026

AI SummaryFuel Supply Chain Coordination Service is a B2B software platform addressing ₹850 Cr addressable market for Oil Marketing Companies managing petrol, diesel, PNG, and LPG distribution across Andhra Pradesh. The opportunity arises from government directives mandating uninterrupted fuel supply and absence of integrated coordination mechanisms. With no specific fuel license required and 70%+ SaaS margins, this is ideal for software entrepreneurs and logistics tech startups in India by 2026.