oppn parties Private Players Allowed To Market Transport Fuel

News Snippets

  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
  • Local and global cues spook the markets on Friday - Sensex crashes 1416 points to 52792 and Nifty by 430 points to 15809
  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
oppn parties
Private Players Allowed To Market Transport Fuel

By A Special Correspondent

The government has finally decided to open up transport fuel retailing to others. It was an injustice that only oil companies who had invested Rs 2000 cr in exploration, drilling or processing of petroleum were allowed to retail the end product. This has resulted in India being served by an oligopolistic marketing structure that just dispensed fuel without caring for the customer. It also meant that pricing policies were opaque and almost every overhead was added to the retail price.

But keeping a minimum net worth threshold of Rs 250cr for those who want to retail fuel is regressive as it will once again prevent smaller players and wider competition. After all, retailing fuel is not like opening a bank. If the government is concerned about payments to oil companies by retailers it need not be as they issue delivery orders only after receiving full payment. Anyone who had the land, who could have invested in setting up infrastructure as per existing laws pertaining to the storage of inflammable materials and had shown that he can invest in stocks should have ideally been allowed to retail fuel. The problem with this government is that it does the right thing but in the wrong manner.

The move is expected to bring in specialized fuel retailers from abroad as India is a huge market for transport fuel and it will keep growing at a fast pace. The likes of Total and Aramco, who have been knocking at the doors of the government for long, along with homegrown Adani group, are likely to enter the sector. The government has set some conditions like setting up 5% of the outlets in rural areas and having at least one new generation fuel like CNG, LNG, bio-fuel or electric charging points at retail outlets, but these are not likely to hinder the new entrants.

The likely shakeup is expected to improve service quality, bring down prices and add to the amenities being offered to the customer. It will also bring in world-class logistics in fuel transportation and storage. The government must bring in regulations to ensure that infrastructure is shared on cost-basis among all the players and that private retailing of transport fuel does not meet the same fate as that of parallel marketing of LPG.