India: Essar Reopens Petrol Station Network
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Monday, 20 October 2008 |
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Indian oil refiner and fuel retailer Essar has said that it will be
reopening its petrol stations across India as crude oil prices have
dropped below $70 per barrel.
Essar had begun reopening an estimated 1,250 petrol stations in the country, of which between 300-350 outlets are now operational, mainly in the southern and western parts of India.
In April 2007 Essare initiated a winding down of the service station network due to heavy losses as a result by government subsidized pricing for the state-owned oil companies, which control a majority of the market.
While the government extended support to the state-owned companies by partly compensating them for losses due to subsidies, private companies like Essar and Reliance have not received any such aid.
Essar has been selling a liter of petrol at up to INR5 higher and a liter of diesel at up to INR10 higher than the state-owned companies.
PetrolWorld 191008
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