Reliance-BP petrol pumps to dent PSU market share, says Morgan Stanley
New Delhi: India’s biggest company Reliance Industries Ltd and UK’s BP plc formalising plans to set up up petrol pumps under Jio-BP brand will impact market share of state-owned fuel retailers, Morgan Stanley said in a research report.
Reliance and BP last week announced further details of their retail fuel partnership, in which the British firm has taken 49% stake for $1 billion.
The tie-up will see RIL’s 1,400 existing pump stations being ramped up to 5,500 over five years. It also will increase the lucrative aviation fuel stations from 30 to 45.
“Targeted fuel station additions would be nearly equivalent to two-thirds of annual station additions by (state-owned) oil marketing companies (OMCs),” it said.
