Monday, May 9, 2011

Pump Property: Choosing The Best Site For Your Fuel Pump

Given the constant rise in fuel prices, owing a petrol/CNG station is a lucrative venture. However, what is perhaps more significant in the context of real estate, is the fact that the value of commercial, and especially residential property, located within a 2 kilometer radius of a petrol/CNG station is 35% lower than properties located further away.
Possible safety hazards(such as fumes, toxicity, and fear of explosions) are the main reasons for this; other reasons include the constant vehicular traffic at petrol/CNG stations and the sequent noise, pollution and congestion.
There are a multitude of exhaustive rules and regulations that must be adhered to when constructing a petrol/CNG station, especially with regard to safety. These rules have been mandated by The Master Plan and Environment Control Department (MP & ECD), a government body that grants approvals and issues permits relating to the construction of petrol/CNG stations.
Once built, the MP & ECD conducts a thorough inspection before the petrol/CNG station can function.
Some of the MP & EC D's bylaws regarding construction include:
1. Plot sizes should be a minimum of 600 sq yd for a CNG station, 1000 sq yd for a petrol station and 1500 sq yd for a CNG/petrol station.
2.Petrol/CNG stations must have a 10-ft wide open space surrounding the structure on all four sides.
3. Petrol/CNG stations should be built adjacent to main roads and thoroughfares, with a service lane providing easy access.
4. There can only be one filing station in a one kilometer radius. The only exception to this rule is if a petrol/CNG station is located on the opposite side of a 100 ft wide double-carriage road that has a dividing media.
5. Adequate parking space should be allotted for supply tankers.
Constructing and setting up a petrol/CNG station can cost anywhere between 3.5 million and five million rupees. This price range does not include the cost of the plot.