Six more private companies are getting ready to enter India’s fuel market and will soon receive approval from the Centre to sell petrol and diesel in the country, according to a report by HT’s sister publication Live Hindustan on Tuesday. The companies are IMC, Onsite Energy, Assam Gas Company, RMBL Solutions India, Manas Agro Industries and Infrastructure Limited and MK Agrotech.
With this, the total number of companies operating in the fuel market will climb to 14. However, private companies are in a state of doubt regarding the pricing strategy as they still have to set prices on an average of 15 days, the report added.
How will consumers benefit?
According to the Live Hindustan report, experts has pointed out that on the basis of the 2019 Amended Market Transportation Fuel Regulations, private companies are permitted to operate in the fuel market. It is expected that the level of competition will increase in the petroleum retail business due to which customers will benefit.
As per the Centre’s guidelines, fresh licenses will be given to companies that have a minimum net worth of ₹250 crore. The 2019 regulations also state that within five years of receiving the license, the companies should come up with at least 100 retail outlets of which five should be situated in remote rural areas.
It is important to note that government companies still continue to occupy the fuel market in India. The Live Hindustan report said that 90 per cent of the petrol pump business is occupied by government companies and the remaining is with Reliance Industries Limited (RIL), Shell and Naira Energy.
{{/usCountry}}It is important to note that government companies still continue to occupy the fuel market in India. The Live Hindustan report said that 90 per cent of the petrol pump business is occupied by government companies and the remaining is with Reliance Industries Limited (RIL), Shell and Naira Energy.
{{/usCountry}}Meanwhile, petrol and diesel prices across the country saw a reduction on Tuesday, the price notification issued by state-run oil companies. Prices of petrol went down by 11 to 15 paise per litre, the second reduction in the past three days. Diesel prices were down by 14 to 16 paise per lire.