NEW DELHI: The government is considering further relaxation of norms for setting up petrol pumps in India, the world’s fastest-growing fuel market, in line with evolving energy security needs and the national push towards decarbonisation, according to an official order.
In 2019, rules were eased to allow non-oil companies into fuel retailing. Firms with a net worth of ₹250 crore could sell petrol and diesel if they committed to installing infrastructure for at least one alternative fuel—such as CNG, LNG, biofuels, or EV charging—within three years. For companies targeting both retail and bulk sales, the net worth requirement was set at ₹500 crore.
The Ministry of Petroleum and Natural Gas has now formed a four-member expert committee, headed by former BPCL marketing director Sukhmal Jain, to review the 2019 guidelines. The panel will evaluate the framework’s effectiveness, align policies with decarbonisation and alternative fuel goals, and address implementation issues. Other members include PPAC DG P Manoj Kumar, FIPI member P S Ravi, and Ministry marketing director Arun Kumar. Public comments have been invited by August 20.
Before 2019, fuel retail licences required investment or commitments worth ₹2,000 crore in oil exploration, refining, pipelines, or LNG terminals. Post-reform, licence holders must set up at least 100 outlets, with 5% in rural areas within five years.
Global players have long eyed India’s fuel sector. TotalEnergies (with Adani Group) sought to open 1,500 outlets, BP has partnered Reliance Industries, Puma Energy applied for a licence, and Saudi Aramco has explored entry.
Currently, state-run Indian Oil, BPCL, and HPCL dominate the 97,804 petrol pumps nationwide. Private operators include Reliance-BP (1,991 outlets), Nayara Energy (6,763), and Shell (355). IOC leads the market with 40,666 pumps, followed by BPCL (23,959) and HPCL (23,901).
