Setting up petrol pumps in India is becoming easier
What's the story
The Indian government is mulling over easing the licensing norms for setting up petrol pumps. The move comes as part of a broader strategy to strengthen energy security and promote decarbonization, an official order has said. In 2019, the government had already relaxed such norms, permitting non-oil companies to enter the fuel retailing business with certain conditions.
Regulatory changes
Companies with net worth of ₹250cr can sell fuel
Under the 2019 guidelines, companies with a net worth of ₹250 crore could sell petrol and diesel if they promised to set up infrastructure for at least one new-generation alternative fuel within three years. For those looking to sell fuel to both retail and bulk customers, the net worth requirement was ₹500 crore. Now, an expert committee has been formed by the Ministry of Petroleum and Natural Gas to review these guidelines.
Committee formation
Committee to assess effectiveness of existing framework
The expert committee, led by Sukhmal Jain (former director of marketing at Bharat Petroleum Corporation Ltd), will assess how effective the existing framework has been in ensuring energy security and market efficiency. It will also look into aligning the policy with India's decarbonization commitments, electric mobility goals, and promotion of alternative fuels. The four-member panel includes, PPAC Director General P Manoj Kumar, FIPI member PS Ravi, and Arun Kumar from the ministry.
Public consultation
Stakeholder suggestions invited on matter
The Ministry of Petroleum and Natural Gas has invited comments and suggestions from stakeholders/general public on the matter within 14 days. This is part of the process to ensure all relevant perspectives are considered in any potential changes to the licensing norms for petrol pumps.
International players
Global energy giants eyeing Indian fuel market
The Indian fuel market has long been on the radar of global energy giants. In November 2018, French energy major TotalEnergies and Adani Group had applied for a license to retail petrol and diesel via 1,500 outlets. BP has also partnered with Reliance Industries to set up petrol pumps, while Saudi Arabia's Aramco is in talks to enter this sector.