The government on October 3, 2016 gave its go-ahead to Haldia Petrochemical for fuel retailing, becoming the 8th player to enter the business, which is controlled by the three stateowned marketing firms led by IndianOil.
The petroleum ministry cleared Haldia Petrochem's proposal within a month. It is expected to set up nearly 50 retail outlets in the first phase in West Bengal including places such as Purbi Midnapore, Paschim Midnapore, Bankura and Purulia districts. In the next phase it will expand to other areas including Howrah and Hooghly.
The government clearance will result in more competition in the oil retailing space, especially in the eastern part of the country where fewer outlets have been opened by private players such as Essar and Reliance.
The four private players, including Shell and MRPL have recently returned to the retailing business after th government allowed public sector marketing companies ti sell auto fuel at prices linked to global prices. The price are now adjusted fortnightly based on the movement ii global crude rates.
The four private players had entered the of marketing business after the government had shifted awai from the administered price regime in 2002. But durin UPA 's tenure when the fortnightly adjustments stopped Reliance and Essar shut down pumps as they could no compete with the PSUs -Indian Oil, Bharat Petroleum an Hindustan Petroleum -which were selling subsidised fuel.
The petroleum ministry cleared Haldia Petrochem's proposal within a month. It is expected to set up nearly 50 retail outlets in the first phase in West Bengal including places such as Purbi Midnapore, Paschim Midnapore, Bankura and Purulia districts. In the next phase it will expand to other areas including Howrah and Hooghly.
The government clearance will result in more competition in the oil retailing space, especially in the eastern part of the country where fewer outlets have been opened by private players such as Essar and Reliance.
The four private players, including Shell and MRPL have recently returned to the retailing business after th government allowed public sector marketing companies ti sell auto fuel at prices linked to global prices. The price are now adjusted fortnightly based on the movement ii global crude rates.
The four private players had entered the of marketing business after the government had shifted awai from the administered price regime in 2002. But durin UPA 's tenure when the fortnightly adjustments stopped Reliance and Essar shut down pumps as they could no compete with the PSUs -Indian Oil, Bharat Petroleum an Hindustan Petroleum -which were selling subsidised fuel.
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