Accounting Guide
Petrol Pump Accounting: Complete Guide for Pakistani Fuel Station Owners
1 March 202610 min read
Proper accounting is what separates profitable petrol pumps from struggling ones. In Pakistan, where most fuel stations still rely on manual registers (roznamcha), accounting errors are extremely common — and extremely costly.
This guide covers everything you need to know about petrol pump accounting: what to track, how to track it, and how to use the numbers to grow your business.
This guide covers everything you need to know about petrol pump accounting: what to track, how to track it, and how to use the numbers to grow your business.
The Daily Sheet (Roznamcha) — Your Most Important Document
The daily sheet is the foundation of petrol pump accounting. It records everything that happened during one business day.
A proper daily sheet must include:
1. Opening and Closing Nozzle Readings for every nozzle
2. Fuel Sales — litres and amount for each fuel type (MS Petrol, HSD Diesel)
3. Cash Collection — total cash received during the day
4. Credit Sales — all udhar/credit sales with customer details
5. Fuel Purchases — any tanker deliveries received
6. Expenses — any cash spent (salaries, utilities, repairs, etc.)
7. Dip Readings — opening and closing tank levels
8. Rate Information — current selling and purchase rates
Common daily sheet problems in Pakistan:
Adding errors when totaling nozzle readings
Missing credit sale entries
Cash-in-hand not matching calculated amount
No one verifying the numbers
A digital system eliminates most of these problems by calculating totals automatically and flagging discrepancies in real-time.
A proper daily sheet must include:
1. Opening and Closing Nozzle Readings for every nozzle
2. Fuel Sales — litres and amount for each fuel type (MS Petrol, HSD Diesel)
3. Cash Collection — total cash received during the day
4. Credit Sales — all udhar/credit sales with customer details
5. Fuel Purchases — any tanker deliveries received
6. Expenses — any cash spent (salaries, utilities, repairs, etc.)
7. Dip Readings — opening and closing tank levels
8. Rate Information — current selling and purchase rates
Common daily sheet problems in Pakistan:
Adding errors when totaling nozzle readings
Missing credit sale entries
Cash-in-hand not matching calculated amount
No one verifying the numbers
A digital system eliminates most of these problems by calculating totals automatically and flagging discrepancies in real-time.
Fuel Purchase Accounting
Every time you receive a fuel tanker, you need to record:
1. Date and time of delivery
2. Supplier name (PSO, Shell, Total, Attock, etc.)
3. Fuel type — MS Petrol or HSD Diesel
4. Quantity received (litres)
5. Rate per litre (purchase price)
6. Total amount payable
7. Payment status — paid or credit
8. Tank — which tank the fuel was loaded into
Why purchase accounting matters:
Tracks what you owe each supplier
Calculates your weighted average purchase price
Shows your profit margin (selling price - purchase price)
Required for tax reporting
Weighted average price is critical when you receive multiple deliveries at different rates. If you bought 5,000 litres at PKR 248 and then 5,000 litres at PKR 252, your average cost is PKR 250/litre — not the most recent price. This affects your profit calculation significantly.
1. Date and time of delivery
2. Supplier name (PSO, Shell, Total, Attock, etc.)
3. Fuel type — MS Petrol or HSD Diesel
4. Quantity received (litres)
5. Rate per litre (purchase price)
6. Total amount payable
7. Payment status — paid or credit
8. Tank — which tank the fuel was loaded into
Why purchase accounting matters:
Tracks what you owe each supplier
Calculates your weighted average purchase price
Shows your profit margin (selling price - purchase price)
Required for tax reporting
Weighted average price is critical when you receive multiple deliveries at different rates. If you bought 5,000 litres at PKR 248 and then 5,000 litres at PKR 252, your average cost is PKR 250/litre — not the most recent price. This affects your profit calculation significantly.
Supplier Payment Tracking
Most fuel deliveries in Pakistan are on credit. You receive the fuel and pay the Oil Marketing Company (OMC) later.
What to track:
Total amount owed to each supplier
Payments made (date, amount, payment method)
Outstanding balance
Payment due dates
Any discounts or adjustments
The danger of poor supplier tracking:
If you do not track payments accurately, you may:
Overpay a supplier (they will not tell you)
Miss a payment deadline and face penalties
Lose track of how much working capital is tied up in payables
Good accounting software shows you exactly what you owe each supplier at any time, with full payment history.
What to track:
Total amount owed to each supplier
Payments made (date, amount, payment method)
Outstanding balance
Payment due dates
Any discounts or adjustments
The danger of poor supplier tracking:
If you do not track payments accurately, you may:
Overpay a supplier (they will not tell you)
Miss a payment deadline and face penalties
Lose track of how much working capital is tied up in payables
Good accounting software shows you exactly what you owe each supplier at any time, with full payment history.
Credit Sales (Udhar) Management
Credit sales are a major part of Pakistani petrol pump revenue. Government departments, transport companies, and local businesses often buy on credit.
For every credit sale, record:
Customer name and account
Date and time
Fuel type and quantity
Rate and total amount
Vehicle number (for fleet accounts)
Nozzle/pump used
For every payment received, record:
Date
Amount
Payment method (cash, cheque, bank transfer)
Which invoices it applies to
Key metrics to monitor:
Total outstanding credit
Aging of receivables (how old the debts are)
Per-customer balance
Monthly collection rate
Rule of thumb: Credit older than 30 days is at high risk of becoming bad debt. Follow up aggressively on anything over 15 days.
For every credit sale, record:
Customer name and account
Date and time
Fuel type and quantity
Rate and total amount
Vehicle number (for fleet accounts)
Nozzle/pump used
For every payment received, record:
Date
Amount
Payment method (cash, cheque, bank transfer)
Which invoices it applies to
Key metrics to monitor:
Total outstanding credit
Aging of receivables (how old the debts are)
Per-customer balance
Monthly collection rate
Rule of thumb: Credit older than 30 days is at high risk of becoming bad debt. Follow up aggressively on anything over 15 days.
Employee Payroll and Expenses
Petrol pump expenses go beyond just fuel purchases. Track all of these:
Employee costs:
Monthly salaries for each employee
Overtime payments
Bonuses and advances
Deductions (loans, absences)
Operational expenses:
Electricity bills
Generator fuel
Water supply
Equipment maintenance and repairs
Cleaning supplies
Rent (if applicable)
Insurance
Miscellaneous:
License and permit renewals
OGRA compliance costs
Security services
Office supplies
Every rupee spent must be recorded. Without this, your balance sheet will show higher profit than reality — and you will not understand why cash is always short.
Employee costs:
Monthly salaries for each employee
Overtime payments
Bonuses and advances
Deductions (loans, absences)
Operational expenses:
Electricity bills
Generator fuel
Water supply
Equipment maintenance and repairs
Cleaning supplies
Rent (if applicable)
Insurance
Miscellaneous:
License and permit renewals
OGRA compliance costs
Security services
Office supplies
Every rupee spent must be recorded. Without this, your balance sheet will show higher profit than reality — and you will not understand why cash is always short.
The Balance Sheet — Your Complete Financial Picture
A balance sheet brings everything together. It shows you:
Income side:
Total fuel sales (cash + credit)
Other income (car wash, shop rent, lubricant sales, etc.)
Expense side:
Fuel purchases
Employee salaries
Operational expenses
Miscellaneous costs
Key figures:
Gross Profit = Sales Revenue - Cost of Fuel Purchased
Net Profit = Gross Profit - All Operating Expenses
Outstanding Receivables = Money customers owe you
Outstanding Payables = Money you owe suppliers
How often should you review it?
Daily: Quick cash position check
Weekly: Sales trends and expense monitoring
Monthly: Full profit/loss analysis
Annually: Tax filing and business planning
FuelRegisters generates a real-time balance sheet automatically from your daily entries. No manual calculations needed — just enter your nozzle readings, purchases, and expenses, and the balance sheet updates itself.
Income side:
Total fuel sales (cash + credit)
Other income (car wash, shop rent, lubricant sales, etc.)
Expense side:
Fuel purchases
Employee salaries
Operational expenses
Miscellaneous costs
Key figures:
Gross Profit = Sales Revenue - Cost of Fuel Purchased
Net Profit = Gross Profit - All Operating Expenses
Outstanding Receivables = Money customers owe you
Outstanding Payables = Money you owe suppliers
How often should you review it?
Daily: Quick cash position check
Weekly: Sales trends and expense monitoring
Monthly: Full profit/loss analysis
Annually: Tax filing and business planning
FuelRegisters generates a real-time balance sheet automatically from your daily entries. No manual calculations needed — just enter your nozzle readings, purchases, and expenses, and the balance sheet updates itself.
Get Your Accounting Right — Everything Else Follows
Good accounting is not optional — it is the difference between knowing your business and guessing. Pakistani petrol pump owners who maintain proper digital records consistently outperform those using manual systems.
With accurate accounting, you can:
Know your exact profit margin on every litre
Catch theft and pilferage quickly
Track customer debts and collect on time
Plan purchases based on actual consumption data
File taxes accurately and on time
FuelRegisters handles all of this automatically. From nozzle readings to balance sheets, everything is connected and calculated for you.
Start your free trial today. Your first accurate balance sheet is one click away.
With accurate accounting, you can:
Know your exact profit margin on every litre
Catch theft and pilferage quickly
Track customer debts and collect on time
Plan purchases based on actual consumption data
File taxes accurately and on time
FuelRegisters handles all of this automatically. From nozzle readings to balance sheets, everything is connected and calculated for you.
Start your free trial today. Your first accurate balance sheet is one click away.
Ready to try FuelRegisters?
Join 500+ Pakistani petrol pumps using our software. Start your free trial today.