Government to relax norms for setting up petrol pumps: Report

THE government is mulling relaxing norms for setting up petrol pumps as it is keen on getting more private players into fuel retailing so as to increase competition.
The Petroleum Ministry has set up an expert committee to recommend easing of fuel retailing licensing rules, the ministry order said.
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 expert committee will "look at various issues related to the implementation of existing guidelines for grant of marketing authorisation of market fuels - petrol, diesel and aviation turbine fuel (ATF)," it said.
The panel would include renowned economist Kirit Parikh, former...
oil secretary G C Chaturvedi, former Indian Oil Corp (IOC) chairman and IIM Ahmedabad Director M A Pathan.
It has been asked to furnish its report within 60 days after due consultations with stakeholders.
The panel will "review the existing architecture and extent of private sector participation in retail marketing of major transportation fuels in the country," the order said.
It will "identify entry barriers, if any, for expansion of retail outlets for private marketing companies."
State-owned oil marketing companies - Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), currently own most of 63,498 petrol pumps 15,255 outlets and BPCL at 14,565 fuel stations.
IOC is the market leader with 27,325 petrol pumps in the country, followed by HPCL with 15,255 outlets and BPCL at 14,565 fuel stations.
The expert committee will "assess the need, if any, to further liberalise the existing guidelines for authorisation of private sector marketing companies," the order said.
A senior oil ministry official said the government is keen on getting more private players in the arena and is willing to relax investment norms as well as the number of permissions needed for setting up a petrol pump.
The expert committee will "assess the need, if any, to further liberalise the existing guidelines for authorisation of private sector marketing companies," the order said.
A senior oil ministry official said the government is keen on getting more private players in the arena and is willing to relax investment norms as well as the number of permissions needed for setting up a petrol pump.
Currently, the three oil marketing companies are following the same methodology for fixing retail prices, which on almost all occasions are in sync with one another and prices vary by just a few paise.