Foreign oil companies are eying retail business in India

Foreign oil companies
Foreign oil companies

Foreign oil companies are now cleared their confusion about India’s petroleum retail sector. British Petroleum (BP) and Reliance Industries announced to enter India’s petroleum retail sector. France’s largest petroleum company Total has partnered with India’s Adani Group. British oil company Shell Plc engaged in giving a fresh edge to its retail business in India. 

Approx 60 billion to be invested by Foreign oil companies in India

Petroleum Minister Dharmendra Pradhan said that Exxon Mobil is also interested in India. All these companies are very enthusiastic about the retail sector of India. They trust the policy of the Modi government regarding the petroleum sector. The confidence of these companies has increased even more that Indian government companies. Private companies will invest around $ 60 billion (Rs four lakh crore). This will create the necessary infrastructure for the domestic retail sector. Pradhan believes that India moves faster towards a gas-based economy. The attractiveness of foreign companies will increase in the Indian petroleum retail sector.

BP and Reliance Industries are aiming to open a total of 5500 petrol pumps in India

British Petroleum Chief Executive Bob Dudley said that BP and Reliance are aiming to open a total of 5500 petrol pumps in India by the year 2033. Currently Reliance has a network of 1400 petrol pumps. He does not agree that the way India has been trying to encourage electric vehicles since 2030. He said that they may have a major impact on the petroleum retail sector at the moment.

Also Read: BJP on Petrol and Diesel Prices before and after 2014

According to a report presented at the India Energy Forum’s Seraviq program. The e-vehicles will account for just 32 per cent of the total vehicles plying in the country by 2050. This will be despite of full encouragement of electric vehicles in India. This is the reason that preparations are on to set up the largest refinery on the west coast of India so far. Shell has taken the license to open 500 petrol pumps in India for nearly a decade and a half ago. They have been able to open only 160 petrol pumps. Now the company has made up its mind to expand rapidly. Exxon Mobil recently indicated that it is considering India’s energy sector very attractive.

Indian Oil companies also partnering to counter foreign oil companies

One of the reasons behind this increased interest among foreign companies are. There are huge possibilities of investment in India’s retail sector in the future. The process of disinvestment of public sector company BPCL is starting soon. The intention of the government is to give its command in the hands of a big foreign company. The government has allowed ONGC to seek another partner for Hindustan Petroleum. ONGC bought the central government stake in HPCL last year for Rs 36,916 crore. Apart from this, the government is also working on a plan to deliver piped gas to 70 percent of the households.

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