Centre allows Reliance BP Mobility and six other companies to sell auto fuel

By Sanjay Maurya

News Highlights

The Centre has permitted seven firms to sell auto fuels throughout the country.
The petroleum retail sector in India is projected to become competitive.
The ministry has also given MK Agrotech and Manas Agro Industries and Infrastructure permission to sell fuel in the country.

Centre allows Reliance BP Mobility and six other companies to sell auto fuel

The Ministry of Petroleum and Natural Gas has permitted seven firms to sell auto fuels throughout the country. These new approvals are in line with the easier guidelines for the authority to bring the transport fuel to market as amended in 2019. The petroleum retail sector in India is projected to become competitive.

Following the reorganization of RIL’s petro and chemical sector, Reliance Industries (RIL) subsidiary Reliance BP Mobility Ltd (RBML) was one of the businesses that obtained clearance from the petroleum and natural gas ministry, according to the reports.

IMC (previously known as Indian Molasses Company), a Chennai-based oil terminals company, has also received the license to sell auto fuels in the nation. IMC Group (IMC) operates and maintains port-based liquid bulk and dry cargo terminals, as well as providing operations and maintenance services and international trade. At the moment, IMC offers bulk liquid storage at the ports of Kandla, Pipavav, JNPT, Mumbai, Goa, Karwar, Ennore, Kakinada, Vizag, Kolkata, Mangalore, Cochin, Chennai, and Haldia.

Assam Gas Company has received permission to market auto fuels in the country. The company has an underground natural gas trunk and distribution pipeline network that serves about 400+ tea factories, 1,000 commercial establishments, approx 31,000 domestic consumers, and many large industrial consumers in the Assam districts of Sivasagar, Charaideo, Jorhat, Tinsukia, Dibrugarh, Golaghat, and Cachar. The firm can transport more than 5.5 MMSCMD of natural gas.

Onsite Energy, a newly established company founded in May 2020, specializes in service operations related to oil and gas extraction as well as oil and gas field services. It has also been approved by the centre.

The ministry has also given MK Agrotech and Manas Agro Industries and Infrastructure permission to sell fuel in the country.

The firms that received permission must have a net value of at least INR 250 crore. Companies must have a net worth of at least INR 500 crore to be granted a license for both retail and bulk sales. According to the new guidelines, firms who receive a retail authorization must open a minimum of 100 retail outlets in five years, including 5% in notified remote areas.