Essar Oil to reopen 70% of retail fuel outlets by year-end

New Delhi, Oct 17 (UNI) Following the softening global crude oil prices, Essar Oil today said it will reopen 70 per cent of its 1,250 total retail outlets by this year-end.

The private sector refinery had shut almost all of its retail outlets starting from April 2007 in view of not being able to compete with the subsidised price of public sector oil retailing companies.

The public sector oil retailing companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation (which sell auto fuel below the cost price) are compensated by the Government for their revenue losses. But, similar mechanism is not available to the private sector players.

''With differential between international product price and domestic prices narrowing, we have reactivated 300-350 retail outlets mainly in south and western India from August,'' company spokesman told reporters here on the sidelines of the 11th Energy Summit, organised by Assocham.

The spokeman said most of the stations in north and some other parts will be restarted next month.

The private sector refiner runs a 2,10,000 barrels per day refinery at Vadinar in Gujarat.

UNI SBA HT1450