Minimum 100 petrol pumps, 5% in remote areas: New liberalised fuel retail policy

India's new liberalised petrol pump norms require licensees to set up a minimum of 100 outlets with at least 5 percent of them in remote areas.

FILE PHOTO (REUTERS)
FILE PHOTO

According to a Gazette notification detailing the norms for setting up petrol pumps, the licensee would also be required to "install facilities for marketing at least one new generation alternative fuels like compressed natural gas (CNG), biofuels, liquefied natural gas, electric vehicle charging points etc at their proposed retail outlets within three years of operationalisation of the said outlet."

The government had last month relaxed norms for setting up petrol pumps, allowing non-oil companies to market fuel in the world's fastest-growing market.

Before this change, to obtain a fuel retailing licence in India, a company needed to invest 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals.

Also check these Vehicles

Find more Cars
Tata Altroz Cng (HT Auto photo)
₹ 7.55 - 10.55 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Punch Cng (HT Auto photo)
₹ 7.10 - 9.68 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Hyundai Kona Electric (HT Auto photo)
₹ 23.79 - 23.98 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Indian Springfield (HT Auto photo)
UPCOMING
₹ 30.87 - 33.50 Lakhs* *Expected Price
View Details
Indian Challenger (HT Auto photo)
UPCOMING
₹ 39.99 Lakhs *Expected Price
View Details
Indian Vintage (HT Auto photo)
UPCOMING
₹ 21.79 - 25.32 Lakhs* *Expected Price
View Details

"Any entity seeking authorisation for retail marketing only should have a minimum net worth of at least 250 crore at the time of making the application to the central government," the notification said.

It fixed the application fee at 25 lakh.

"The entity needs to set up at least 100 retail outlets, out of which at least 5 percent of the proposed retail outlets shall be set up in the notified remote areas within five years of the grant of authorisation," it said.

The applicant will have to state in the application the source of supply of products, tankage and other infrastructure with capacity, means of transportation of products and year-wise number of petrol pumps proposed.

The government had last set fuel marketing conditions in 2002 and the review now is based on the recommendation of a high-level expert committee.

The move will facilitate entry of global giants such as Total SA of France, Saudi Arabia's Aramco, BP Plc of UK and Trafigura's downstream arm Puma Energy.

Total in partnership with Adani Group had in November 2018 applied for a licence to retail petrol and diesel through 1,500 outlets. BP too has formed a partnership with Reliance Industries to set up petrol pumps but is yet to make a formal application.

While Puma Energy had applied for a retail licence, Aramco was in talks to enter the sector.

State-owned oil marketing companies -- Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) -- currently own most of the 66,408 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.

Nayara has 5,453 while Shell has just 167 pumps.

BP had a couple of years back secured a licence to set up 3,500 pumps but has not yet started doing so. It is now venturing into the business with Reliance on plans to scale up Reliance's present network strength to 5,500.

Failing to set up a minimum of 5 percent of petrol pumps in identified remote areas would attract a penalty of 3 crore per pump. But the firms can at their choice deposit 2 crore per remote area pump at the time of licensing to get an exemption from the clause, the notification said.

Currently, IOC is the market leader with 28,237 petrol pumps in the country, followed by HPCL with 15,855 outlets, and BPCL with 15,289 fuel stations.

First Published Date: 26 Nov 2019, 19:40 PM IST
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
75% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 227 Rs. 899
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.