India: RIL may sell or lease out its fuel pumps to IOC (update 3)
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Tuesday, 17 March 2009 |
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Reliance Industries (RIL) may propose to sell or lease out its 1,432
petrol pumps to Indian Oil Corporation (IOC) even as it will tomorrow
start reopening the outlets that were shut a year ago.
Reliance may propose to transfer its petrol stations into a joint
venture company run by the state firm, a source said. "The company had
invested about Rs 5,000 crore in setting up the retail network and it
does not make sense for it to keep them idle," he said.
Partnership with IOC would help the company overcome the handicap of
not being able to use fuel from its two refineries at Jamnagar in
Gujarat because they have been converted into only-for-exports units.
Also, it would enable the pumps to avail of subsidy if the government
doesn't free fuel pricing and international oil prices bounce back.
"The company has started removing the protective gear put around
dispensing units when the petrol pumps were shut in March last year.
From Monday (March 16), it will start to selling petrol and diesel from
some of these," a source said.
However it is important to point out that there has been no official response from IOC to date.
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