Business Today

Govt opens up fuel retailing norms; allows non-oil firms to set up petrol pumps

At present, to obtain a fuel retailing licence in India, a company needs to invest Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas terminals

twitter-logo PTI   New Delhi     Last Updated: October 23, 2019  | 17:57 IST
Govt opens up fuel retailing norms; allows non-oil firms to set up petrol pumps

The government on Wednesday opened up fuel retailing norms, allowing non-oil companies to set up petrol pumps to increase competition. Briefing reporters about the decisions taken by the Cabinet, I&B Minister Prakash Javadekar said the opening up the fuel retailing will increase investment and competition.

At present, to obtain a fuel retailing licence in India, a company needs to invest Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals.

"The Cabinet Committee on Economic Affairs (CCEA) has approved review of guidelines for giving authorisation for marketing of transportation fuel," he said.

Companies with Rs 250 crore turnover can enter fuel retailing, subject to condition that 5 per cent of the outlets will be in rural areas.

State-owned oil marketing companies - Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) - currently own most of 65,000 petrol pumps in the country.

Reliance Industries, Nayara Energy - formerly Essar Oil and Royal Dutch Shell are the private players in the market but with limited presence. Reliance, which operates the world's largest oil refining complex, has less than 1,400 outlets.

Also read: Modi govt gives nod to BSNL, MTNL merger; to raise sovereign bond worth Rs 15,000 crore for revival

Modi govt's big bonanza for farmers; hikes MSP on Rabi crops from 50% to 109%

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close