All the 1,432 Reliance petrol pumps in the country were shut by the Reliance Industry itself after sales dropped to almost nil as it could not match the subsidised price offered by public sector competition.

Out of all the 36,936 petrol pumps in the country,the company hardly own less then three per cent.Of the total retail outlets, state run Indian Oil, Bharat Petroleum and Hindustan Petroleum own 34,304 pumps, while the remaining belong to private sector Essar Oil and Shell India.

Petroleum minister Murli Deora informed the Rajya Sabha on Tuesday that the sales at the Reliance outlets was negligible due to selling price differential between private and public sector ROs.and it leads the copany to close all their 1,432 pumps in the country.Public sector currently sells petrol at a loss of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre. This revenue loss is made up by the Government through issue of oil bonds and subsidy share from upstream firms like ONGC and GAIL.

Since Reliance is a private firm,the company is not entitled for the subsidy and priced fuel from their pumps at Rs 8-10 a litre higher than public sector competition,which lead to fall in the market share.

By consulting the Government, the public sector oil marketing companies fix the The price of sensitive petroleum products.Private oil companies are not subject to pricing restrictions by the Government and are free to take their pricing decisions on commercial considerations.And petrol pumps of Essar oil
and Shell India have not closed.

Categories: Business
Tags: Government, india, issue, loss, market, price, Reliance, retail, share