1,625 more fuel outlets for Punjab

Vijay C Roy

Chandigarh, June 28

The three state-owned oil companies are on the aggressive expansion mode in Punjab and plans to add 1,625 retail fuel pump outlets, taking the tally to over 5,500 pumps including private firms, in the state. The expansion will cater to the emerging markets such as urban areas, upcoming highways, agricultural pockets, rural, remote and far-flung areas.

3 psus in expansion mode

Bharat Petroleum Corporation Ltd (BPCL) will add 585 pumps followed by Indian Oil Corporation (IOC) 584 pumps and Hindustan Petroleum Corporation Ltd (HPCL) 456 pumps in Punjab. This is one of the biggest-ever expansion in state.

Bharat Petroleum Corporation Ltd (BPCL) will add 585 pumps followed by Indian Oil Corporation (IOC) 584 pumps and Hindustan Petroleum Corporation Ltd (HPCL) 456 pumps. This is one of the biggest-ever expansion of fuel retail network in the state. All retail outlets will be developed using the latest technology, including automation. Currently, the three oil marketing companies combined have 3,809 fuel pumps in the state.

Monthly sale will go down

Once new pumps are added, the monthly sale of fuel pumps will go down to 70 kl per month. Gurmeet Monty Sehgal, Petrol pump dealers association

The last opportunity for setting up retail outlets (petrol pumps) was offered by oil marketing companies (OMCs) in 2018. Now, the OMCs have invited applications for setting up of pumps. According to sources, the region is one of the most promising markets for vehicle makers, which has prompted oil companies to expand.

According to the OMCs, this expansion aims to ensure that quality petroleum products are readily available to meet the agricultural demand of rural areas and serve the needs of people residing in remote regions.

The OMCs are of the view that the increasing number of outlets in Punjab may facilitate customers, however, the dealers are worried about viability and apprehend that it will be difficult to sustain in near future.

“The average monthly sale of petrol and diesel in Punjab is around 90 kilolitres per pump (1kl =1,000 litres) compared to the national average of 120 to 130 kilolitres. Once new pumps are added, the monthly sale of fuel pumps will further go down to 70 kl per month, making business unviable. To sustain, on an average a petrol pump should sell 100 kilolitres per month,” said Gurmeet Monty Sehgal, spokesperson, Petrol Pump Dealers Association, Punjab.

He added that the oil marketing companies should increase margins by at least Rs 2 per litre on sales up to 150 kl per month before setting up new outlets to ensure the viability of the existing pumps.