Shell Set to Expand Fuel Distribution in India

“We plan to expand in south and west India this year,” Vikram S. Mehta, chairman of the Shell group of companies in India, said.   It is reported that Shell operates 50 outlets in the country, and plans to set up another 150 fuel stations this year. Shell, which is the only international brand in the domestic petroleum retail business, will invest around Rs 200-250 crore in the first phase of expansion. It has the licence to set up 2,000 petrol stations in the country.

The company was selling branded petrol and diesel, prices of which are not controlled by the government, even at a time when global crude prices were on an upswing. Reliance Industries (RIL), however, closed around 1,400 outlets because of the uncompetitive pricing environment. While spiralling crude prices forced private retailers to raise their rates, oil PSUs received a huge subsidy from the government.

Shell company officials said the phased expansion of the retail business, the fall in global crude prices and plans for de-regulation of petroleum products encouraged them to go ahead with their retail plans.

According to P. Raghavendran, president of RIL’s refinery business, the company will re-enter the retail segment when the government deregulates fuel prices to provide a level-playing field with its PSU counterparts.

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