Bharat Petroleum Corporation Limited (BPCL) is planning to expand its fuel retail network by 14,273 pumps or nearly two-thirds to enhance its share in the rapidly growing Indian fuel market.
The company, which operates a quarter of the country's petrol pumps is pressing ahead with fuel network expansion as the demand for petrol and diesel continues to grow on new vehicle sales and the expanding economy. National consumption of both diesel and petrol has grown 6% this financial year
India's fuel retail network has grown by nearly 40% to about 88,000 pumps in the past five years, driven mainly by aggressive expansion by state-run companies as private players have remained cautious. Indian Oil Corporation alone operates about 36,700 pumps, or about 42% of the total. BPCL and HPCL operate a similar number of pumps, around 21,300. .
BPCL's bumper profit this year has been driven by a mix of cheaper Russian crude oil, higher refining margins and a freeze on domestic pump prices. The company's increased capacity to process cheaper crude and the flexibility to make big switches between different products have helped boost refining margins.
Russian crude comprised about 30-40% of the total crude it processed in the second quarter.
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