Freeing petrol pump licensing to enhance competition in fuel retail: ICRA
A government-appointed expert committee recommending scrapping of the Rs 2,000 crore investment norm for a licence to set up petrol pumps will help enhance competition in the growing domestic market for auto fuels, ICRA said Tuesday.
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 liquefied natural gas (LNG) terminals.
The recommendations “would increase the competition levels for the PSU oil marketing companies (OMCs) who currently are dominant in the sector,” ICRA said in a statement.
The five-member expert committee on easing of fuel retailing licensing rules in its report last month said the requirement of authorisation from the central government to market petrol and diesel should continue as they are “sensitive, essential and safety-related commodities” and their supply requires “some degree of control” to “ensure compliance to safety, customer service, and universal service obligations”.
