petrol pump network
India’s petrol pump network has now crossed the 1 lakh mark. In the last decade, state-owned oil companies have rapidly opened new outlets to meet the demand of increasing vehicle numbers and deepen fuel penetration in rural areas. Now India ranks third in the world in fuel retailing, behind only America and China.
An ET report quoted a senior official as saying that this rapid expansion has reduced the problems of fuel availability in rural and remote areas to a great extent. Along with this, customer service has also improved due to increased competition. Now 29% of the total pumps are in rural areas, which was 22% in the last decade.
CNG and EV charging started
Earlier, most pumps served only petrol and diesel, but now almost one-third of the outlets are also providing facilities like CNG and electric vehicle (EV) charging. This has increased the options available to customers and pump revenue has also increased.
Private sector’s share reduced
However, private companies control less than 10% of the total pumps. Reliance Industries runs about 2,100 outlets and Nayara Energy runs about 6,900 outlets. Persistent government price controls have limited private investment. Some industry experts question whether such rapid expansion is sustainable, as many of the new pumps are selling very little.
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Revenue will increase due to new fuel option
The pump revenue is expected to increase with the addition of gas and charging facilities. The popularity of EV and CNG vehicles is increasing, which will increase customer choice and improve the long-term sustainability of fuel stations. Thus, India’s fuel retail network has not only grown, but is also becoming modern and diverse.