In an attempt to improve access to fuel for citizens, the National Democratic Alliance (NDA) government plans to revamp the self-investment model for setting up fuel retail outlets of state-run oil marketing companies.
This proposed model, also referred to as the corpus fund model by the ministry of petroleum and natural gas, allows opening of a petroleum product retail outlet of public sector firms such as Indian Oil Corp. Ltd (IOC), Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL) if the entire investment is made by the applicant.
India has 56,190 fuel retail outlets, both state-run and private, which sell petrol and diesel. The other firms involved in the fuel retail are Numaligarh Refinery Ltd and Mangalore Refinery and Petrochemicals Ltd. Also, private companies such as Reliance Industries Ltd, Essar Oil Ltd and Shell India are in the fuel retail business.
he operational fuel retail models of the public sector firms include outlets which are dealer owned and dealer operated, dealer owned and company operated, and company owned and company operated.
India’s demand for energy has been increasing. As per BP Global data, the country has emerged as the third-largest consumer of crude oil with a consumption of 4.2 million barrels per day (mbpd) for calendar year 2015, after the US (19.39 mbpd) and China (11.96 mbpd). India overtook Japan, which consumed 4.15 mbpd.
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