If all goes well, the oil companies like Reliance Industries, Essar Oil and Shell will set up petrol pump network either by the end of this fiscal or by beginning of next financial year.

The erstwhile Atal Bihari Vajpayee-led NDA government had allowed these firms to open petrol pumps across country. A number of petrol pumps had been started operation as well.

With the new NDA government headed by Prime Minister Narendra Modi coming to power in May this year, the petrol pumps are likely to set up on the basis of orders passed during previous NDA regime.

Reliance, Shell, ONGC and Numligarh Refinery were allowed to open around 1000 petrol pumps. The diesel pricing had been made market determined but the decision could not be implemented.

After 2007, the private players started closing down petrol pumps as they couldn’t sustain losses incurred on them due to higher production cost.

Now with the government mulling to deregulating diesel price, private oil companies are all set to re-enter the market.  

Essar oil said that the company is planning to open 1000 new petrol pumps in next one and half years. Company has already got license to open 2,500 petrol pumps.

The losses incurred on state owned oil companies have come down to 10 paise per liter, thanks to depreciation in crude oil prices.
Meanwhile, Oil and Natural Gas Minister Dharmendra Pradhan has also hinted at deregulating diesel price.

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