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Old 25th March 2008, 16:19   #1
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Default Reliance to shut petrol pumps

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MUMBAI: Reliance Industries, the country’s largest private sector company, has decided to shut down all the petroleum retail outlets owned by it directly as surging crude prices and the absence of government subsidies have made operations unviable.

“We are kept out of the ambit of the government-sponsored survival package. We have decided to close all our company-owned retail outlets. It has become unviable to transport fuel from our depots to retail outlets as the throughput from our retail outlets has almost become zero.

We are not going to re-fuel any of our retail outlets and this will eventually lead to clousure of such outlets till stocks last,” a source close to the development told ET. A Reliance spokesperson declined to respond to an ET questionnaire on the issue.

Source: Economic Times
I am surprised as I thought they were here to stay

Last edited by Technocrat : 25th March 2008 at 16:35.
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Old 25th March 2008, 16:26   #2
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Business sense, I would say.

If the goverment wasnt funding for the oil deficit, other public sector oil companies would have either increased the fuel prices or shut shops too.
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Old 25th March 2008, 16:27   #3
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Well lets see what happens as the petrol bunks which are given to private guys are as such not doing great business as these are already charging more than the govt owned company bunks.
They should not give up like this.
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Old 25th March 2008, 16:28   #4
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What happens to the Petrol Pump owners now?

Generally, can they just choose another provider, like say Shell?
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Old 25th March 2008, 16:31   #5
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Reliance petrol Rs 58/litre in Karnataka , when normal petrol is just Rs 52/litre?

Also HiQ has entered Karnataka. Any review on them?
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Old 25th March 2008, 16:33   #6
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I guess what was killing them was the lack of the subsidies enjoyed by the State run oil Companies, not that they are not suffering but the loss was more for Reliance it seems
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Old 25th March 2008, 16:35   #7
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We might get a closure sales discount @ 25 bucks or something . Anyways they were price substantially higher in an expensive market. A failure for Reliance , hell i didn't see that coming up.
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Old 25th March 2008, 16:36   #8
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And also they were located mostly in the outskirts of the cities...
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Old 25th March 2008, 16:38   #9
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looks like shell will also be on the way too
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Old 25th March 2008, 16:39   #10
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Reliance was I think maintaining a price differential of Rs. 5.0 per litre over PSUs’ Retail Selling Price on HSD and Rs. 4.50 per litre for MS across India. However, because of Government subsidies to PSUs only, private sector marketing companies have to match the price offered by PSUs or face sharply declining sales. RIL’s current retail price is significantly higher as compared with PSUs, resulting in a drastic drop in sales at its retail outlets. Even with the differential in price, RIL was incurring substantial under-recoveries in retail marketing.
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Old 25th March 2008, 16:41   #11
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can this thread be merged with this (Reliance A1 Plazas) thread as this topic is been discussed there also

Last edited by deepak_ms : 25th March 2008 at 16:59.
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Old 25th March 2008, 16:49   #12
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So much to the Auto LPG Dream in the TINY hamlet of HOSUR near banagalore. !!! Damn the Govt!!!!
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Old 25th March 2008, 16:58   #13
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Quote:
Originally Posted by svsantosh View Post
So much to the Auto LPG Dream in the TINY hamlet of HOSUR near banagalore. !!! Damn the Govt!!!!

whats that ?
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Old 25th March 2008, 17:08   #14
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Reliance pump in my home town remained shut for the last 6 months.
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Old 25th March 2008, 17:23   #15
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Guys.. now there are 3 topics on the same subject !!
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