India: Subsidy Inbalance Sees Reliance Winding Down Fuel Supplies
|
|
|
|
Monday, 12 May 2008 |
|
It has been reported to local news agencies that Reliance
Industries Ltd. (RIL) has halted fuel supplies to its 1,432 petrol stations across the
country during the past few weeks.
The response follows domestic media reports quoting India's
petroleum minister Murli Deora as saying RIL has shut its outlets
across the country. In March PetrolWorld reported that that RIL planned to
shut around 900 petrol stations due to lack of government subsidies and
high crude oil prices.
RIL and other private sector companies do not get access to the
government's oil bonds, available to state-owned oil marketing
companies, which helps them underwrite the subsidy cost of selling
petroleum products at a discounted price despite surging crude prices.
As a result, Relaince has been very proactive in developing its
c-stores and ancillary services as well as developing its overseas
market for fuel distribution and storage. This has been evident
to date in Africa and Europe. But Reliance has been looking further
afield as well.
PetrolWorld 040508
|
