Opening a petrol pump will now be a piece of cake! The government formed an expert committee and also sought suggestions from the public.

Petrol Pump License: The Government of India is considering making the rules for opening petrol pumps easier. This step will be taken in view of the increasing importance of energy security and alternative fuels. The rules were also relaxed in 2019, which opened the doors of the retail fuel business for non-oil companies.

Petrol Pump License: The Government of India had relaxed the rules for opening petrol pumps in the year 2019, which opened the way for non-oil companies to enter the retail business of fuel. Now opening a petrol pump may be easier in the coming days. The government is considering further easing the rules for opening petrol pumps in the world's fastest growing fuel market. According to the government order, this step has been taken keeping in mind the changing perspective of energy security in India and the increasing importance of alternative fuels. The government is considering further easing the norms related to the issuance of licenses for petrol pumps keeping in mind the changing global fuel scenario.

Expert committee formed

According to a government order, the Ministry of Petroleum and Natural Gas has constituted an expert committee to examine the effectiveness of the 2019 guidelines and to update the policy in line with the national resolve for energy security and reduction in carbon emissions. According to the government order, this step has been taken keeping in mind the changing perspective of energy security and the increasing importance of alternative fuels in India, the world's fastest growing fuel market. The expert committee is headed by Sukhmal Jain, former Director (Marketing) of Bharat Petroleum Corporation Limited (BPCL). Its other members include Director General of Petroleum Planning and Analysis Cell P. Manoj Kumar, member of FIPI PS Ravi and Director (Marketing) of the Ministry Arun Kumar.

Suggestions sought in 14 days

The purpose of the formation of this committee is to review the existing policy of 2019, suggest measures to promote alternative fuels and electric transport and identify the challenges in the implementation of the existing guidelines. The ministry has sought suggestions from stakeholders and the general public within 14 days on this order issued on August 6.

The rules were tough before 2019

Before 2019, it was very difficult to get a license to open a petrol pump. At that time, any company could start this business only when it invested at least ₹ 2000 crore in big projects like oil-gas exploration, refinery, pipeline or LNG terminal. As a result, only big and prosperous oil companies were able to step into it.

These are the rules for opening a petrol pump now

In 2019, the government simplified this rule. Non-petroleum companies with a net worth of Rs 250 crore were also allowed to sell petrol and diesel. If a company wants to supply to both retail and wholesale consumers, then its net worth should be Rs 500 crore.

In 2019, a condition was laid down that companies with a minimum net worth of Rs 250 crore can sell petrol and diesel. However, they will also have to provide alternative fuel facilities like CNG, LNG, biofuel or EV charging within three years of starting operations. At the same time, the net worth of the company was required to be at least ₹ 500 crore to sell petrol and diesel both in retail and wholesale.

A company can get a license if its net worth is Rs 250 crore, provided it opens at least 100 petrol pumps within 5 years and 5% of these pumps are in rural areas. This change also gave small and new companies an opportunity to enter this sector.

Total petrol pumps operating in the country

At present, there are 97,804 petrol pumps in India, of which the largest share is with government companies - Indian Oil (40,666), BPCL (23,959) and HPCL (23,901). In the private sector, Reliance-BP joint venture has 1,991 pumps, Nayara Energy has 6,763 pumps and Shell has 355 pumps.

Company name – Number of petrol pumps

Indian Oil – 40,666

Bharat Petroleum – 23,959

Hindustan Petroleum – 23901

Nayara Energy – 6763

Reliance – 1,991

BP Shell – 355

Interest of foreign companies

Foreign companies are also showing great interest in India's fuel market. France's TotalEnergies has applied to open 1500 pumps in collaboration with Adani Group. Britain's BP has partnered with Reliance, while global energy companies like Trafigura's Puma Energy and Saudi Aramco have also been interested in a share in the Indian retail fuel market.