Six More Private Companies To Enter The Market For Selling Petrol And Diesel Soon: Report

The entry of new companies is expected to increase the level of competition in the petroleum retail business which can indirectly benefit the customers.

Six More Private Companies To Enter The Fuel Selling Market | Representative Image

New Delhi: The number of companies operating in the fuel market is expected to increase with the entry of six new private companies getting the nod to sell petrol and diesel in the country.

As per the report in Live Hindustan, the six companies to join the fray include IMC, Onsite Energy, Assam Gas Company, RMBL Solutions India, Manas Agro Industries and Infrastructure Limited, and MK Agrotech.

How it will impact the fuel market?

With the addition of new players, the total number of companies operating in the fuel market will reach 14. However, there are concerns arising due to the pricing strategy among private companies as they still need to set prices on an average of 15 days, the report added.

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On the basis of the 2019 Amended Market Transportation Fuel Regulations, private companies are allowed to operate in the fuel market, as per the report.

The entry of new companies is expected to increase the level of competition in the petroleum retail business which can indirectly benefit the customers.

According to the guidelines, fresh licenses will be allotted to companies that have a minimum net worth of Rs250 crore. As per the 2019 regulations, such companies have to establish at least 100 retail outlets of which five should be situated in remote rural areas. This should happen within five years of receiving the license.

It is to be noted that government-owned companies continue to occupy the maximum share in the Indian fuel market, Around 90 percent of the petrol pump business is occupied by government companies and the remaining is with Reliance Industries Limited (RIL), Shell, and Naira Energy, as per the report.

Meanwhile, the common man got some breather with petrol and diesel prices coming down on Tuesday. Prices of petrol went down by 11 to 15 paise per liter, the second reduction in the past three days. Diesel prices were down by 14 to 16 paise per lire. The prices of petrol and diesel remain stagnant on Wednesday.