India is at number 3 in this list, why did America and China lose their sleep?

Even though India will become the third largest economy in the world in the next few years. Even after that, there is still a long way to go to leave America and China behind. But there is also a list that India has become the third largest country in the world after America and China. After this, US and Dragon are also having sleepless nights. In fact, India has become the third largest country in the world where the petrol pump network has crossed the level of 1 lakh. The special thing is that the distance between India and China and America is only 10 thousand petrol pumps. Which is likely to be completed soon. Because government and private companies are trying to expand their networks to remote areas and remote areas. Let us also tell you what kind of figures have emerged in the report…

India becomes the third largest country in the world

The network of petrol pumps in India has crossed the 100,000 mark, which has almost doubled in the last decade. State-owned oil companies have aggressively opened petrol pumps to meet the growing demand for vehicles and further increase fuel access in rural areas. India is now the country with the third largest fuel retail network in the world, after America and China. The US and China both operate 110,000 to 120,000 pumps and India’s geographical areas are much larger. B Ashok, former chairman of Indian Oil Corporation, said that this expansion has largely eliminated the problems related to fuel availability in rural and remote areas and has improved customer service by increasing competition.

Which companies have how many petrol pumps?

Control of private companies is less than 10%

Petrol pumps located in rural areas now constitute 29 percent of the total pumps, which was 22 percent a decade ago. The nature of petrol pumps has also changed: earlier only petrol and diesel were available, but now almost a third of pumps also offer alternative fuels including CNG and electric vehicle charging. Despite policy reforms in the last decade, the private sector controls less than 10 percent of the pumps in India. Reliance Industries operates around 2,100 pumps, while Nayara Energy operates around 6,900 pumps. The government’s continued control over pump prices has limited private investment. However, some industry executives question whether such rapid expansion is economically sustainable.

competition for market share

In April, Harish Mehta, then CEO of Reliance BP Mobility, had said that India had too many petrol pumps, many of which were unproductive. He said in a public program that I firmly believe that the number of fuel retail sales in India is high. And gave the example of Indonesia, where there are only 9,000 petrol pumps. Ashok said that there is a competition for market share. Companies fear that if they do not install new pumps, competitors will install them and take away their market share. New outlets also increase sales, which helps offset losses at existing pumps due to increased competition.

increase in consumption

In India, petrol consumption has increased by 110 percent in the last decade, while the demand for diesel has increased by 32 percent, due to which the total sales of petrol and diesel have increased by almost 50 percent. The average sales of diesel per outlet are almost double the sales of petrol. However, Ashok said this increase in demand is not enough to maintain the pace of retail expansion. He said there are many pumps where sales are very low, but dealers are hesitant to close them due to reputation, especially in small towns and rural areas. He further said that companies also have to face the complex process of closing outlets.

Adequate pumps available

All India Petroleum Dealers Association (AIPDA) Treasurer Nitin Goyal said the problem of economic unviability is visible outside the cities as well. He said that the government will have to ensure that even the old pumps remain viable. Industry executives believe that the retail network will stabilize as they argue that India has enough pumps to meet current and future fuel demand for many years. In the US, competition has led to the closure of inefficient outlets, causing the number of fuel stations to decline over time.

Revenue may increase

Goyal said that the market in America is completely regulated, but in India the pump prices are almost the same. Nevertheless, outlets with very low sales may eventually close. Officials said the addition of gas and charging facilities is expected to increase the revenue of fuel retail outlets with the increasing popularity of vehicles running on alternative fuels. He also said that this move will increase choices for customers and improve the long-term sustainability of fuel stations.