BPCL dealers seek exit window before privatisation
NEW DELHI: Bharat Petroleum Corporation Ltd (BPCL) petrol pump owners have sought the provision of an exit window before India’s second-largest state-run oil refiner and fuel retailer is privatised.
In a presentation to the parliamentary standing committee on petroleum earlier this month, the dealers have suggested a minimum lock-in period after privatisation to protect willing dealerships against cancellation by BPCL’s new owner.
The All India Petroleum Dealers Association, an umbrella body of petrol pump owners, told the committee headed by BJP’s Lok Sabha MP Ramesh Bidhuri the petrol pump land should be de-leased immediately in case a dealer wants to exit the business or end association with BPCL.
BPCL has 15,402 retail outlets, accounting for 29% of petrol and diesel sold in the country. “Land lease of many sites have expired but the company refuses to let go,” one dealer said on condition of anonymity.
There are 64,625 petrol pumps in the country. Only 669, or 1% of these, are owned and operated by the retailing companies. The remaining pumps are categorised into ‘CODO’ (company-owned, dealer-operated), which forms the bulk of the pumps, and ‘DODO’ (dealer-owned, dealer-operated).
