Non-oil firms allowed to set up fuel pumps

Tribune News Service

New Delhi, October 23

The government today relaxed norms for setting up petrol pumps, allowing non-oil companies to venture into the business — a move that could help private and foreign firms to enter the world’s fastest-growing market.

At present, to obtain a fuel retailing licence in India, a company needs to invest Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or LNG terminals.

“The new policy will bring in more investment and give a fillip to ‘Ease of Doing Business’. It will boost employment in the sector. Setting up of more outlets will result in better competition and services for consumers,” Information and Broadcasting Minister Prakash Javadekar said.

New guidelines 

Firms with a net worth of Rs 250 crore will be able to sell fuels provided they install facilities for either CNG, LNG, biofuels or electric vehicle charging. 5% of the total outlets will have to be set up in rural areas