Reliance shuts all of its petrol pumps in India

Reliance shuts all of its petrol pumps in India

Reliance Industries has shut all of its petrol pumps throughout country after sale dropped to almost nil as it could not match the subsidised price offered by public sector competition.

The company owned less than three per cent of the 36,936 petrol pumps in the country. Of the total retail outlets, state-run Indian Oil, Bharat Petroleum & Hindustan Petroleum own 34,304 pumps, while the remaining belong to private sector Essar Oil & Shell India.

Petroleum Minister Murli Deora said in Rajya Sabha, “Reliance has informed that sales at their retail outlets was negligible due to selling price differential between private & public sector ROs, leading to the closure of all their 1,432 pumps in the country with effect from March 15″.

Public sector currently sells petrol at a loss of Rs 13.97 a litre & diesel at a discount of Rs 20.97 per litre. This revenue loss is made up by the government through issue of oil bonds & subsidy share from upstream firms like ONGC & GAIL.

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