Small players can now enter the fuel retailing business
The cabinet committee on economic affairs (CCEA) on Wednesday opened up the fuel retail market by lowering the entry barrier and allowing all companies with a net worth of ₹250 crore to set up outlets.
To boost investments in the domestic economy, which is battling a severe demand slowdown, the Centre also allowed companies the flexibility to stitch up a joint venture (JV) to meet the eligibility criteria.
The existing rules required prior investments of ₹2,000 crore for companies to enter the fuel retail segment, which many believed, favoured state-run oil marketing companies (OMCs), including Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL).
