Reliance Industries plans to fully resume its petrol pump network by March next year as the government ending diesel subsidies have given it a level- playing field to compete with state-owned retailers.
“Reliance plans to re-commission the entire network of 1,400 outlets by the end of FY 2015-16. As on March 31, 2015, over 300 outlets are operational,” the company said in its latest annual report.
The firm had ventured into selling petrol and diesel through a network of nearly 1,400 petrol pumps in 2006, but had to shut operations as it wasn’t getting subsidies extended to state-run operators.
The subsidies made good losses state retailers incurred on selling fuel below market price, aimed at shielding the poor from inflation. The government deregulated petrol in June 2010 and diesel in October last year, paving the way for private operators’ entry.
“Post announcement of deregulation, prices of petrol and diesel are being changed in-line with international prices. This has presented an opportunity for RIL to re-enter the domestic retail market,” it said.