Indian Government gave permission to sell petrol and diesel to 7 new companies

The Ministry of Petroleum and Natural Gas has authorized 7 companies to sell auto fuels in the country. Apart from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), these 7 companies will also sell petrol and diesel. These rights have been given on the basis of the amended Market Transportation Fuels Rules in the year 2019.

Which are these companies:-

  • Reliance industries ( RIL )
  • Reliance BP mobility ( RBML)
  • Indian Molasses company ( IMC )
  • Assam Gas Company
  • Onsite Energy
  • M K Agrotech
  • Manas Agro Industries And Infrastructure Ltd

They got rights including RIL and Assam Gas Company

According to a top official of the ministry, Mukesh Ambani’s company Reliance Industries (RIL) has been given rights under these rules. This is being done because the existing Retail Marketing Authorization of RIL has been transferred to its subsidiary Reliance BP Mobility (RBML).

Chennai-based Indian Molasses Company (IMC), which is specialized in oil terminals, has also got approval to sell auto fuel in the country. It had placed bets for the second round of bidding to explore and produce oil and gas from India, but IMC was not able to secure any projects. IMC is known to store petroleum products, liquefied gas, acids and vegetable oil. Assam Gas Company, a contractual company of the Government of Assam, has also got the right to sell auto fuel in the country.

Onsite Energy has also been approved by the government for petroleum retailing in the country. This company has come into existence only in the year 2020. M K Agrotech and Manas Agro Industries and Infrastructure have also got approval to sell petroleum products in retail as per the new rules. Manas Agro Industries and Infrastructure has its own LPG brand. It also has an agreement with Nayara Energy to sell ethanol blended petrol.

Right now 90% of the market is occupied by government companies

These new authorizations or rights were given to companies that had a minimum net worth of Rs 250 crore. If the rights are required for both retail and wholesale sales, then the minimum net worth should be Rs 500 crore. According to the rules of the year 2019, within 5 years of getting authorization, companies will have to set up at least 100 retail outlets, of which 5% should be in rural areas. Currently 90% of the fuel retailing business in the country is occupied by state-owned companies, the rest with RIL and Nayara Energy.

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