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Private Participation in Retail O&G Sector on a High, After Government Scrapped Diesel Subsidies

News

Reliance Industries plans to fully resume its petrol pump network by March next year as government ending diesel subsidies have given it a level-playing field to compete with state-owned retailers.

Source:  ET

 

SNP Insights

Government decision to curb diesel subsidy has given level playing field to private players for retail business in O&G segment. It can end monopolistic market operation of state run companies & in order to secure their market, they will come up with effective business plan, to attract the customer. Active participation of ‘Total’ & ‘Reliance’, will bring in competition to the retail business; hence more investments & better services may follow. Companies like Reliance, those who are in whole value chain operation may profit considerably, with this development in the retail market.

Source: SNP