Reliance Industries Ltd. (RIL) is scheduled to start retail fuel operations from today (16th March). For retailing, RIL will buy auto fuel from Indian Oil Corporation (IOC) and Essar Oil. It is learnt that, initially the retail fuel operations will start in Gujarat and Maharashtra. Later RIL may form a joint venture (JV) with IOC to run these outlets. However, a Reliance spokesperson has said that, no official decision has been taken on the JV issue. He also added that, the company is considering all available options to it.

 

Earlier, there were some media reports that IOC and RIL are in discussions to form a JV for leasing out these retail fuel outlets. The reports also speculated that, the two companies may go in for re-branding of these outlets. Meanwhile, RIL has approached other refiners, including Indian Oil, Hindustan Petroleum, MRPL and private sector Essar Oil for buying products from them.

 

Sources said the JV route is being evaluated in order to get subsidy benefit from the government. At present, subsidy on fuel is available to only the three public sector undertakings (PSUs) IOC, HPCL and BPCL. Last year, the Mukesh Ambani-controlled company shut all its petrol pumps after sales dropped to almost nil. It was because, it could not match the subsidized prices offered by the PSUs.