The government has opened up the hitherto state-dominated fuel retail market by allowing private players, including foreigners as well as non-oil companies, to set up petrol pumps in the country. However, those looking for a licence to retail hydrocarbons need to open at least 100 outlets, with 5% of those in designated remote areas. This liberalisation would bring in the much-needed competition as well as capital into one of the world’s fastest-growing fuel markets. As per the norms released on 26 November, licensees must set up stations for dispensing at least one new-generation alternative fuel—such as CNG, a bio-fuel, LNG—or put up electric charging points within three years of a pump starting operations.
The norms are in sync with the government’s effort to push automakers towards environment-friendly modes of mobility. It’s clear that various vehicles will have to co-exist for years to come. Millions of Indians have yet buy their first car—the number of passenger cars is expected to rise six-fold in the next 20 years—and so the market potential is enormous.
