The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

India to relax rules for entry into fuel retail sector-source

Wed, 07th Aug 2019 12:36

By Nidhi Verma

NEW DELHI, Aug 7 (Reuters) - India is set to relax rules forsetting up fuel stations after almost two decades, in a moveexpected to allow companies like Saudi Aramco, Totaland Trafigura to gain a foothold in a sector dominated bystate-run entities.

The new rules - suggested by an expert panel - mirror thosein developed nations like the United States and Britain, andwould allow convenience stores, shopping malls and hypermarketsto sell fuels if they are eligible, said an oil ministry source.

The government panel has recommended allowing marketingrights for sale of gasoil, gasoline and aviation fuel tocompanies with a net worth of 2.5 billion rupees.

India, where fuel demand is expected to rise in the comingyears, has turned into a lucrative market after the governmentremoved controls on retail pricing of gasoline and gasoil.

Global players, however, faced difficulties in getting afoothold as they need to commit investment of 20 billion rupees($272 million) in India's oil and gas sector to get fuelmarketing rights.

The cabinet is expected to approve the proposal in four tosix weeks, said the source, who declined to be named becausethey are not authorised to speak to media.

India's oil ministry did not respond to an email seekingcomment.

DIFFICULT TO SURVIVE

India has emerged as a key driver of global oil demand. TheInternational Energy Agency expects the South Asian nation toaccount for a quarter of global energy use by 2040.

Companies including Reliance Industries,RoyalDutch Shell and Nayara Energy, part owned byRussian oil major Rosneft account for about 10% of the64,625 fuel stations in the country, according to data posted onthe Petroleum Planning and Analysis Cell.

"For a new player it is very difficult to survive as themost of the ROs (retail outlets) are owned by state-runcompanies. We want to provide enabling environment to havegreater competition," said the source.

The new rules will help trader Trafigura's downstream armPuma Energy, which had applied for a license last year to sellauto fuels in India.

Subsidiaries and joint ventures of companies with existingfuel retailing licenses need to apply again for the marketingrights, according to the panel's suggestions.

This would mean the joint venture of Reliance Industriesand BP announced on Tuesday will need a licensefrom the government to start fuel retailing in the country.

The new rules would also allow companies to directly sellfuel to industries without setting up retail fuel stations.

Companies must set up 5% of proposed retails outlets inrural areas within seven months of winning authorisation, thepanel recommends.(Editing by Deepa Babington)

More News
16 Dec 2021 22:13

UPDATE 2-Royal Dutch Shell confirms delay in sale of Texas refinery to Mexico's Pemex

(Adds approval expected by Jan. 13)By Stefanie Eschenbacher and Erwin SebaMEXICO CITY/HOUSTON, Dec 16 (Reuters) - Royal Dutch Shell on Thursday confirmed a Reuters report that the sale of its controlling interest in a Texas refinery to Mexican stat...

Read more
16 Dec 2021 14:42

Latin American oil auctions kick off after two-year lull

* 11 firms registered to bid in Brazil's auction on Friday* Competition expected to be fiercest since 2018* Seven Latin American nations to hold auctions in 2022-2023By Marianna Parraga and Sabrina ValleHOUSTON, Dec 16 (Reuters) - Latin America's oil...

Read more
15 Dec 2021 12:16

Five companies seek to develop CO2 storage off Norway

OSLO, Dec 15 (Reuters) - Five companies have applied to build carbon dioxide (CO2) storage on the Norwegian continental shelf, the country's oil and energy ministry said on Wednesday.The ministry proposed in September two offshore areas, one in th...

Read more
15 Dec 2021 10:10

UPDATE 2-FTSE dips as inflation surges to 10-year high

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* IAG down on plans to cancel Air Europa acquisition* Rentokil falls for second day on M&A plans* Inflation jumped to 5.1% in Nov vs. 4.2% in...

Read more
15 Dec 2021 09:33

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

LONDON BROKER RATINGS: BofA starts Pod Point at Buy; Barclays cuts DCC

Read more
14 Dec 2021 09:40

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

LONDON BROKER RATINGS: JPMorgan raises Experian, cuts BAE Systems

Read more
13 Dec 2021 16:10

UK dividends calendar - next 7 days

UK dividends calendar - next 7 days

Read more
13 Dec 2021 11:48

Brazil's oil regulator approves Mero oilfield production agreement

SAO PAULO, Dec 13 (Reuters) - Brazilian state-run oil company Petrobras said on Monday that the country's oil regulator ANP has approved a production agreement for the Mero oilfield, deciding on which stake of its oil and gas output will be hold ...

Read more
13 Dec 2021 10:16

UPDATE 2-Energy, bank stocks drag London's FTSE 100; Omicron fears weigh

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Purplebricks plunges after delaying results* SThree drops as CEO steps down* FTSE 100 down 0.8%, FTSE 250 off 1.2% (Updates to close)By Ba...

Read more
13 Dec 2021 07:22

Qatar Energy acquires 17% stake in Shell-operated concessions in Egypt

DUBAI, Dec 13 (Reuters) - Qatar Energy will acquire a 17% stake in two Shell-operated concessions (Block 3 and Block 4) in Egypt's Red Sea region, Shell Egypt said on Monday.Shell will remain the main operator of the concessions, Shell Egypt's st...

Read more
12 Dec 2021 14:00

Activist group targets Exxon with shareholder climate resolution

* Follow This targets Exxon for first time* Dutch group also targets other energy companiesBy Ron Bousso and Sabrina ValleLONDON, Dec 12 (Reuters) - Climate activist group Follow This targeted Exxon Mobil Corp with a shareholder resolution urging i...

Read more
10 Dec 2021 23:26

UPDATE 1-Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

(Adds no reply from company)HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, sa...

Read more
10 Dec 2021 20:44

Shell restarting Louisiana refinery crude unit after repairs from Hurricane Ida -sources

HOUSTON, Dec 10 (Reuters) - Royal Dutch Shell Plc was restarting on Friday the crude distillation unit (CDU) at its 230,811 barrel-per-day (bpd) Norco, Louisiana, refinery after completing repairs from Hurricane Ida, said sources familiar with pl...

Read more
10 Dec 2021 16:57

Can we still be friends? Shell sends Dutch PM parting note

By Toby SterlingAMSTERDAM, Dec 10 (Reuters) - On the day that shareholders of Royal Dutch Shell PLC voted to move the company's headquarters to London https://www.reuters.com/markets/europe/royal-dutch-shell-plc-shareholders-set-approve-move-london...

Read more
10 Dec 2021 15:29

Belarus oil firm cancels 2022 exports to Germany after EU sanctions - traders

MOSCOW, Dec 10 (Reuters) - Belarusian oil company Belorusneft has cancelled its 2022 export plans to Germany via the Druzhba pipeline following new European Union sanctions on the company, three traders familiar with the matter said on Friday.On ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.