India: Reliance Petrol Retail Network Will Reopen With Viability of Fuel Retail
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Wednesday, 02 July 2008 |
According to local media reports Reliance revealed that of the 2,500
service station network in India, over a 1,000 are company owned and
these will reopen when there’s viability in the petrol retail
business.
The sources also report that a number of service stations will be
converted form petrol to LPG outlets. The non coco sites which number
1,500 service stations have been offered lurative buy back deals.
Dealers who did not want to sell out, RIL is assisting them in
converting them into gas dealerships. To date, 42 auto LPG outlets have
been made operational. It may be recalled
that RIL had been forced to exit the petroleum retail business after
clocking up large losses of almost Rs 800 crore last year on an
nvestment of around Rs 2,500 crore account of the growing gap between
low, government mandated prices of petrol and diesel and rising crude
oil prices.
It remains to be seen how the government will resolve the subsidy issue which is at the core of the problem.
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