Four retailers to dot petro mktg map

NEW DELHI: The government has approved four new entrants into the petro-marketing sector — Reliance Petroleum, Oil and Natural Gas Corporation, Essar and Numaligarh Refineries.
All these companies will now be allowed to market petroleum products like petrol and diesel through retail outlets.
With this, the oil marketing sector which has till now been restricted to the state-run companies will for the first time be opened up to private and joint sector players.
The current players in the market have already been preparing themselves for the new scenario with more consumer-friendly outlets and marketing strategies to win customer loyalty.
Since the new players like Reliance, which has a 27 million tonne refinery in Jamnagar, have deep pockets, their entry is expected to change the entire picture of marketing.
Also, government officials feel that new players , particularly global oil companies will also make forays into tehe huge market once the new market determined regime is fully in place.
This is the first set of proposals cleared after the government decided to liberalise oil marketing in the country, Petroleum ministry officials said.
Reliance had sought permission to begin retail marketing through a chain of 5,900 outlets while Essar which is in the process of constructing a 10 million tonne refinery in Gujarat would enter the market with 1,700 outlets.
ONGC had applied for entering the marketing segment in a limited manner through a total of 650 outlets while the fourth applicant Numaligarh refinery had sought permission for operating 510 outlets.
Sources said Petroleum Ministry had found application of Reliance Petroleum, which seeks to sell its Jamnagar refinery products, through 8,768 petrol dispensing pumps and 15,007 diesel dispensing pumps at 5,849 retail outlets, in order, but has sought clarifications on fuel sourcing from Essar Oil.
Though Essar Oil, which is setting up a 10.5 million tonne refinery in Gujarat, had stated that it would buy products from state-run and private refiners or import, the Ministry has sought to know the exact arrangements worked out for product sourcing and the quantities it would be selling, they added.