Shell seeks to buy and sell fuel retail stations in India

Shell India has confirmed that it is offering operational fuel retail outlets for sale in India. India’s Business Standard newspaper suggests that 20 of the company’s 80 retail outlets are up for sale and the primary reason is differential pricing and the selective subsidy policy that the government has in place with regards to fuel retailing, according to Deepak Mukarji, communications head for Shell India. Oil marketing companies have reportedly not found Shell India’s sales offer particularly attractive as the valuations attached to retail outlets and assets are relatively high. However, Shell is also looking to acquire around 20 sites on which to set up new outlets and has also been approaching oil marketing companies for deals. (June 23, 2010)