4,000 new petrol pumps for TS

Focus on upcoming highways, agricultural pockets and industrial hubs

A major expansion of the petrol pump network is on the anvil in Telangana with national oil marketing companies IOC, HPCL and BPCL planning to open as many as 4,000 retail outlets.

A significant expansion considering that the three companies have 2,450 retail outlets in the State, the programme is all set to be rolled out with advertisements inviting applications from prospective dealers. The expansion is being undertaken by the oil marketing companies, primarily to meet the growing fuel needs and convenience of customers, said J.M.Naik, State Level Coordinator for Oil Industry in Telangana.

In doing so, the oil companies will focus on going to hitherto uncovered areas, growing the network in rural areas. They count upcoming highways, agricultural pockets and industrial hubs as emerging areas. The retail outlet network in rural, remote and far-flung areas are being expanded with the intention of reaching product, predominantly diesel, to meet the agricultural demand, he said.

A part of the nationwide expansion of their petrol pump network, the oil companies were waiting for the Assembly election process to be completed to initiate the programme. The oil companies’ decision comes in the backdrop of the retail sales of petrol and diesel increasing at the rate of around 8% and 4% respectively annually in the country.

On the time frame for the expansion, Mr.Naik said it was not easy to adhere to a strict time line since the process of adding petrol pumps depends on several factors, starting with the level of interest in taking up dealership at all the locations, availability of land, receipt of all the necessary approvals and find the suitable dealer.

In two years

Typically, the conversion rate from the number of locations advertised to actual setting up of petrol pump is 15-20%.

This time, it may be around 20-25%, he said, expecting the new outlets to be in place within two years. All the proposed retail outlets would be automated.

On the break-up of the new outlets proposed, he said Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation would be setting up around 1,000 outlets, Indian Oil Corporation would add 2,000 outlets.

For the first time, computerised draw of lots/bid opening would be held under the aegis of an independent agency to bring in more transparency to the process, Mr. Naik added.

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Printable version | Apr 3, 2020 10:49:04 AM | https://www.thehindu.com/news/cities/Hyderabad/4000-new-petrol-pumps-for-telangana/article25736544.ece

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