We can bounce back in fuel market: Reliance
Reliance, which processes 660,000 barrels per day, has 1,300 petrol stations, compared with some 30,000 retail outlets run by state firms.
By PTI |
JAMNAGAR: Country’s top private oil firm, Reliance Industries Ltd., is confident it will win back lost market share in petrol and diesel retailing if the business climate improves, a top official said on Wednesday.
"Once we get a level playing field from the government we shall recapture our lost market share," Executive Director Hital Meswani told reporters.
Reliance, which operates India's biggest refinery at Jamnagar on the west coast, saw its market share plummet to 2 percent last month from 16 percent in January as it sold fuel at higher prices unlike state firms, which sell at low state-administered prices.
"We have long-term commitment in this sector but today we have no choice but to pass on the rise in oil prices to the consumers," he said.
The government issues bonds to state-run Indian Oil Corp., Hindustan Petroleum Corp. Ltd. and Bharat Petroleum Corp. Ltd. and asks Oil and Natural Gas Corp. to sell crude at a discount to control fuel prices and inflation.
But private-sector retailers like Reliance are not compensated.
Reliance, which processes 660,000 barrels per day, has 1,300 petrol stations, compared with some 30,000 retail outlets run by state firms.
Reliance has now asked the government for the same benefits as its state-run rivals. It has offered to compensate its dealers who have lost customers.
India raised petrol prices by 6.5 percent and diesel by 9.2 percent in June, rejecting oil firms' demand for a 25 percent increase in retail prices.
"The domestic market is at a very crucial stage with oil prices rising steadily but the price at the pump has by and
large remained frozen," Meswani said.
large remained frozen," Meswani said.
U.S. light crude soared to a record 78.40 a barrel in July but has lost $17 since then.
Reliance Petroleum Ltd. , a unit of Reliance Industries and in which Chevron Corp. has a 5 percent stake, is building a new 580,000 bpd refinery near Reliance Industries' existing facility.
Local media reports said the new company had sought government approval to set up petrol stations across the
country, but Meswani said Reliance Petroleum had no such plans.
country, but Meswani said Reliance Petroleum had no such plans.
"Reliance Industries' own capacity can take care of the entire domestic market, RPL is predominantly export oriented," he said.
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