Petroleum ministry issued revised guidelines for fuel marketing companies

21 Nov 2019

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Ministry of Petroleum and Natural (MoPNG) Gas has revised the guidelines for authorisation to market transportation fuels, with a view to promote ease of doing business and boost private participation, including foreign investment, in the fuel retail sector. 

The revised guidelines have been published in the Gazette of India and is available on the website of MoPNG.
The resolution applies for marketing of only motor spirit and high speed diesel for “bulk” and “retail” business.
An entity desirous of seeking authorisation for either retail or bulk must have a minimum net worth of Rs250 crore at the time of making application. In case authorisation is required for both retail and bulk, minimum net worth will be Rs500 crore.
Entities seeking authorisation for bulk and retail business have to make separate applications and a non-refundable application fee of Rs.25 lakh is applicable.
For retail authorisation, an entity has to set up at least 100 retail outlets, out of which 5 per cent should be in the notified remote areas within 5 years of the grant of authorisation. An effective mechanism has been prescribed to ensure that the entity delivers on its commitment to set up the ROs in remote areas.
An entity is required to deposit prescribed bank guarantee amount as security at the time of grant of authorization in addition to application fee.
Giving this information in the Rajya Sabha on Tuesday, minister for petroleum and natural gas Dharmendra Pradhan also informed the House that the government through a gazette notification on 29 May 2019 amended Petroleum Rules 2002 for door step delivery of diesel to stationery equipment, heavy machinery/ vehicles etc. Accordingly, public sector oil marketing companies and private oil companies have commenced door step delivery of diesel through some of their respective dealerships. At present, there is no proposal for doorstep delivery of petrol and kerosene, said adding that 55 dealerships have the facility of doorstep delivery at present.

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