BPCL petrol filling station near Nakirekal

India has introduced a new liberalised policy that requires licensees to set up at least 100 outlets.

Of the total petrol pumps, at least 5% need to be located in remote areas of the country.

PTI cited a gazette notification saying that new facilities need to be installed by the licensees to market at least one new-generation alternative fuel at their retail outlets, which they propose to set up.

These fuels include compressed natural gas (CNG), biofuels and liquefied natural gas (LNG), among others.

The facilities need to be installed at the proposed outlet within the first three years of operations.

Last month, the Indian Government had relaxed policies to set up additional petrol pumps, thereby allowing non-oil companies to retail fuel in the country.

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Before the regulation was considered, a company was required to invest Rs20bn ($282m) either in hydrocarbon exploration and production (E&P) or refining, pipelines or LNG terminals.

The gazette notification said: “Any entity seeking authorisation for retail marketing only should have a minimum net worth of at least Rs2.5bn ($34.9m) at the time of making the application to the central government.”

It now fixed the application fee at Rs2.5m ($0.035m).

This latest policy urges the applicant to mention about the source of products supply, tankage and other infrastructure with capacity in the application.

The applicant should also state the product transportation method, as well as a year-wise proposed number of petrol pumps.

A majority of the petrol pumps in the country are currently owned by state-owned oil marketing companies Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HP).