Major changes ahead? Centre to review licensing rules for petrol pumps

New Delhi: In a significant step towards market efficiency and India’s push for alternative fuels, decarbonisation, and e-mobility, the Ministry of Petroleum and Natural Gas has formed an expert committee to review the 2019 norms for issuing licenses for petrol pumps.

According to the order, the committee will "assess the effectiveness of the framework envisaged in Resolution dated November 8, 2019, in ensuring energy security and market efficiency; align the policy framework with national commitment towards decarbonisation, electrical mobility and promotion of alternative fuel; and address issues in implementation of existing guidelines.”

Furthermore, the Centre is also reexamining the norms to see whether they need to be further liberalised.

A four-member committee, headed by former Bharat Petroleum Corp. Ltd. Director (Marketing) Sukhmal Jain, will examine the rules. Other members include Petroleum Planning and Analysis Cell Director General P. Manoj Kumar, Federation of Indian Petroleum Industry member P.S. Ravi, and Petroleum and Natural Gas Ministry Director (Marketing) Arun Kumar.

The government last eased the rules in 2019, allowing companies with a net worth of ₹250 crore to sell petrol and diesel if they commit to installing infrastructure for at least one alternative fuel — such as CNG, LNG, biofuels, or EV charging — within three years. For companies serving both retail and bulk customers, the net worth requirement was set at ₹500 crore.

The ministry has invited public and stakeholder feedback on the proposed changes within 14 days from Aug. 6.

Before 2019, companies needed to invest or commit Rs 2,000 crore in oil exploration, refining, pipelines, or LNG terminals to qualify for a fuel retailing licence. The 2019 reforms reduced the threshold significantly and mandated setting up at least 100 retail outlets, with 5 per cent in rural areas within five years.

Global energy majors like Total, BP, and Saudi Aramco have evinced an interest in investing in India’s fuel retail sector. Currently, public sector giants Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd, together, own and operate most of the country’s 97,804 petrol pumps.

The IOC is the market leader with 40,666 petrol pumps in the country, followed by the BPCL and the HPCL with around 24,000 each.

Reliance Industries, Nayara Energy (formerly Essar Oil), and Royal Dutch Shell are the private players in the market, but account for a small presence. IANS