Oil companies’ expansion plan creates problem of plenty due to Covid

Oil companies’ mega expansion plan has collided with the pandemic, creating for petrol pumps a double whammy of increased competition and collapsing fuel demand.

In two years, companies have added around 12,500 pumps, increasing the country’s fuel retail network by nearly 20 per cent to 77,200, even as the combined sales of petrol and diesel have plunged about 30 per cent in May. The devastating pandemic cut petrol and diesel demand by 7 per cent and 12 per cent, respectively, during 2020-21