Shell, Reliance may revive plans for fuel outlets

Reliance Industries Ltd., Royal Dutch Shell Plc. and Essar Energy Plc. may revive plans to add retail fuel outlets in India after the country scrapped subsidizing gasoline and diesel fuel. Essar will “significantly” increase the number of outlets, said Naresh Nayyar, chief executive officer of Essar Energy. The three companies run less than 20% of the 10,849 pumps the government has allowed them to operate. Reliance, owner of the world’s biggest refining complex, and Essar shut filling stations after failing to match prices offered by subsidized state-run rivals as crude soared to a record in 2008. The government’s decision to allow gasoline and diesel fuel to be sold at market prices will help private refiners to tap rising demand in the country where per capita fuel consumption for passenger vehicles is forecast to double in the next 20 years. (June 29, 2010)