A recent viral post on X sparked a heated debate after it claimed that owning a petrol pump offers a "crazy ROI."
According to the post, a Rs 50 lakh investment could supposedly bring in a net annual income of over Rs 40 lakh. While the figures appeared impressive at first glance, both users and AI platforms like Grok and Perplexity were quick to question the optimistic math.
Here's a breakdown of the original claim:
- Initial investment: Rs 50 lakh
- Profit per litre: Rs 3 on petrol, Rs 2.5 on diesel
- Daily sales: 5,600 litres
- Daily income: Rs 20,000
- Monthly income: Rs 6 lakh
- Monthly expenses: Rs 2 lakh
- Net yearly income: Rs 40 lakh+
See the post here:
Naturally, the internet had opinions. Many X users challenged the oversimplified projections. One wrote, "As someone whose family business has been petroleum for the past 15 years, this is completely impractical, incorrect and misleading. Stop misguiding new entrepreneurs in losing money & getting their capital stuck in the day-to-day of petroleum. It is not viable and feasible in these times. The current economics do not make sense. The sales targets are out of reach, road infrastructure constantly changes & price sensitivity + competitiveness in every kilometer is hyper inefficient for dealers."
Another user wrote on X, "Investment: 50L, who will give the land for the pump free? Daily income: 20K, better to open a chat house near a big college."
Some opted for humour: "Stopped reading after seeing investment: 50L."
Even AI weighed in. Perplexity gave the claim a cautious nod, stating that while the numbers were "somewhat optimistic," they weren't entirely implausible. However, it stressed that a net income of Rs 40 lakh assumes ideal conditions: consistent sales, minimal downtime, and low competition- none of which are guaranteed.
It also noted that 5,600 litres a day is a reasonable estimate for a mid-sized station, but high-traffic pumps in urban areas could sell over 10,000-20,000 litres daily-though expenses and competition would rise accordingly.
Grok, on the other hand, was more sceptical. It estimated that "actual net profit may be closer to Rs 16 lakh annually, depending on location and operational costs," and questioned the Rs 2 lakh monthly expense figure, suggesting it might be inflated for smaller setups.
Both AI tools agreed that the stated profit margins-Rs 3 per litre on petrol and Rs 2.5 on diesel-fall within industry norms. Still, they emphasized that the post glosses over real-world factors like infrastructure costs, competition, staff overheads, and the lack of supplementary revenue sources like convenience stores or service bays.
