Reliance to shut petrol pumps

Technocrat · 25th March 2008, 16:19

Quote:

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

dadu · 25th March 2008, 16:26

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.

maddy42 · 25th March 2008, 16:27

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.

sids911 · 25th March 2008, 16:28

What happens to the Petrol Pump owners now?

Generally, can they just choose another provider, like say Shell?

diabloo · 25th March 2008, 16:31

Reliance petrol Rs 58/litre in Karnataka

, when normal petrol is just Rs 52/litre?

Also HiQ has entered Karnataka. Any review on them?

Technocrat · 25th March 2008, 16:33

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

sanjayatarizona · 25th March 2008, 16:35

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.

penpavan · 25th March 2008, 16:36

And also they were located mostly in the outskirts of the cities...

Prithvi · 25th March 2008, 16:38

looks like shell will also be on the way too

vasudeva · 25th March 2008, 16:39

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.

deepak_ms · 25th March 2008, 16:41

can this thread be merged with this thread as this topic is been discussed there also

svsantosh · 25th March 2008, 16:49

So much to the Auto LPG Dream in the TINY hamlet of HOSUR near banagalore. !!! Damn the Govt!!!!

esteem_lover · 25th March 2008, 16:58

Quote:

Originally Posted by svsantosh

So much to the Auto LPG Dream in the TINY hamlet of HOSUR near banagalore. !!! Damn the Govt!!!!

whats that ?

satish_appasani · 25th March 2008, 17:08

Reliance pump in my home town remained shut for the last 6 months.

spadival · 25th March 2008, 17:23

Guys.. now there are 3 topics on the same subject !!

25th March 2008, 16:26	#2
dadu Senior - BHPian Join Date: May 2007 Location: Bangalore Posts: 3,800 Thanked: 463 Times View My Garage	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.
	() Thanks

25th March 2008, 16:27	#3
maddy42 Senior - BHPian Join Date: Aug 2007 Location: Coorg Posts: 2,193 Thanked: 1,674 Times View My Garage	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.
	() Thanks

25th March 2008, 16:28	#4
sids911 BHPian Join Date: Jul 2006 Location: Irvine, CA Posts: 389 Thanked: 44 Times View My Garage	What happens to the Petrol Pump owners now? Generally, can they just choose another provider, like say Shell?
	() Thanks

25th March 2008, 16:31	#5
diabloo BANNED Join Date: Jun 2007 Location: Bengalooru Posts: 1,480 Thanked: 17 Times	Reliance petrol Rs 58/litre in Karnataka , when normal petrol is just Rs 52/litre? Also HiQ has entered Karnataka. Any review on them?
	() Thanks

25th March 2008, 16:33	#6
Technocrat Senior - BHPian Join Date: Feb 2004 Location: GTA Posts: 14,765 Thanked: 2,705 Times	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
	() Thanks

25th March 2008, 16:35	#7
sanjayatarizona BHPian Join Date: Mar 2008 Location: "God's own Shaap" Posts: 355 Thanked: 10 Times	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.
	() Thanks

25th March 2008, 16:36	#8
penpavan BHPian Join Date: Oct 2007 Location: Blore Posts: 452 Thanked: 234 Times	And also they were located mostly in the outskirts of the cities...
	() Thanks

25th March 2008, 16:38	#9
Prithvi BHPian Join Date: May 2005 Location: BANGALORE Posts: 302 Thanked: 26 Times	looks like shell will also be on the way too
	() Thanks

25th March 2008, 16:39	#10
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	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.
	() Thanks

25th March 2008, 16:41	#11
deepak_ms BHPian Join Date: Jan 2007 Location: KA55 / KA50 Posts: 195 Thanked: 6 Times	can this thread be merged with this thread as this topic is been discussed there also Last edited by deepak_ms : 25th March 2008 at 16:59.
	() Thanks

25th March 2008, 16:49	#12
svsantosh Senior - BHPian Join Date: Mar 2008 Location: Dubai Posts: 4,294 Thanked: 8,101 Times View My Garage	So much to the Auto LPG Dream in the TINY hamlet of HOSUR near banagalore. !!! Damn the Govt!!!!
	() Thanks

25th March 2008, 17:08	#14
satish_appasani Senior - BHPian Join Date: Jun 2004 Location: Hyderabad Posts: 1,114 Thanked: 110 Times View My Garage	Reliance pump in my home town remained shut for the last 6 months.
	() Thanks

25th March 2008, 17:23	#15
spadival Senior - BHPian Join Date: Oct 2004 Location: Melbourne, AU Posts: 1,772 Thanked: 29 Times View My Garage	Guys.. now there are 3 topics on the same subject !!
	() Thanks