India: Reliance Closes Over 50% Service Station Network
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Wednesday, 26 March 2008 |
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India's largest independent company Reliance Industries Ltd plans
to shut around 900 petrol retail outlets due to lack of government
subsidies and high crude oil prices, according to local media sources.
Of
the 1,429 petrol retailing outlets it curretnly operates, Reliance Industries plans
to close around 900 outlets which the company owns directly, the source
said.
Reliance Industries and other private sector companies do
not get access to 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.
The lack of government support to privately owned oil
marketing companies has resulted in the lack of level playing field
between the public and private sector, the source added.
Another
independent Indian oil company is Essar who has also closed its
network. Shell has stopped selling the standard fuel brands but
continues to sell its premium brand.
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