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Amendment in Petrol Pump Licensing Guideline on Cards : Strive to Bring in More Competition

News

State-run fuel retailers — Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) — have suspended appointing new petrol pump dealers following a directive by the oil ministry, which wants companies to amend selection guidelines before they resume new appointments, sources in government and industry said. 

Source:  ET

SNP Insights

Government is in the process of soften land ownership clause of petrol pump applicant, in order to bring in more participants in the sector. Move to amend type of bank applicant can tie up with, will  ease financing aspect of pump applicant. This prospective change in guideline will encourage more & more applicant to come for this business leading to more competition & hence better service & customer satisfaction. Yet clarity in allocation process & facilitating open bidding, must be ensured which will revoke discretionary allotment. 

Source: SNP Infra Research