Reliance petrol pumps start fuel retailing in Gujarat at PSU rates

AHMEDABAD (makemystocks): Following the deregulation era, India’s largest business conglomerate, Reliance Industries Ltd (BOM:500325) today informed that the company has resumed the retailing of pero-fuels at as many as 162 outlets in Gujarat.

With the decontrol of petrol pricing, the RIL fuel retail outlets now retail Motor Spirit (Petrol) at price parity with PSUs, the company informed in a statement issued this afternoon today.

The company informed that previously, at times of controlled pricing scenario, fuel retailing was a disadvantageous business, as the private payers were not entitled to get government subsidy.

‘Now, with the deregulation of Petrol, there is a level playing field and Reliance Petrol will now be sold at the same price as that of the other Oil Companies,’ the company statement read.

Of the total 162 retail outlets that were opened in Gujarat on Tuesday, August 10, 2010 as many as 103 are either dealer-owned and dealer-operated (DODO) or Company-owned and dealer-operated (CODO). Meanwhile, as many as 59 are the Company-owned and company-operated (COCO) outlets.

Reliance had a total of about 1,300 petrol pumps across the country, of which about 290 were located in Gujarat.

The company went on to say that given a further deregulation in diesel prices as well, it will sell diesel at market rate. However, Reliance Diesel is also sold at the same price as that of competition presently.

Reliance will further, resume operations across all pumps, pan India in due course of time.

“When Reliance had earlier commenced its fuel retail operations, it had redefined fuel retailing in India with state-of-the-art technology, improved internal processes and enhanced customer focus. We are confident that customers would welcome their ‘most preferred petroleum retailer’ back,” the company quoted a spokesperson.

RIL stocks closed at Rs.988.25 down by 0.54% from its previous closing on the BSE.