Govt relaxes fuel retailing norms, private firms can set up petrol pumps

Paving the way for the entry of new players in the fuel-marketing space, the government on Wednesday scrapped a rule that mandated a company to commit at least Rs 2,000-crore investment in the petroleum sector. With this, newer players like Total, Adani, and Saudi Aramco — and even super markets — can open outlets for selling automobile fuel.

Entities seeking authorisation will now need to have a minimum net worth of Rs 250 crore only. Authorised entities will, however, have to meet certain conditions such as setting up a minimum 5 per cent of their retail outlets in the notified remote areas within five years of grant of authorisation. A mechanism has been set up to monitor this obligation.