Reliance to expand retail petrol pump network

Mumbai, May 23: Reliance Industries Limited (RIL) plans to expand its retail petrol pump network countrywide and raise the number of the pumps to around 2,000 by FY 07 from the present 1,200, according to sources here.

''The Company is buoyed by the encouraging response it has received for its products so far and is confident that it will be able to maintain its growth momentum,'' sources said.

Reliance's marketshare in petroleum products presently stands at 15 per cent nationally while its diesel's standalone marketshare stands at around 12.5 per cent. Sales from its petrol pumps are around four times more than what competitors sell on an all-India basis,'' the sources claimed.

Reliance Industries Limited increased its diesel price with effect from yesterday by Rs 2 per litre and its diesel will now be retailed by Rs 2.36 to Rs 2.97 higher per litre depending upon the prevailing tax rates in different regions of the country.

The diesel price hike was prompted by the fact that RIL was suffering losses as it was getting no concessions on purchase of crude nor the benefits of oil bonds which its PSU competitors enjoy.

This effectively meant that while PSUs purchased crude at reduced rates, RIL had to buy it at competitive rates from the international market which put the Company at a disadvantage, the sources said.

The hike in diesel price is expected to help Reliance cut its losses marginally, which, market sources estimate at around Rs 1,500-crore in FY 06.

The Company had also increased its petrol prices by Rs 2 per litre a few days back.

UNI