Essar Oil to have 5,000 gas stations by end of 2016

Essar Oil, India's second largest private oil firm, plans to more than triple its network of gas stations to 5,000 by the end of 2016, said the company’s chairman Prashant Ruia.

Indian-based Essar now has a portfolio of 1,550 gas stations, with another 1,600 in various stages of development, making it the largest private fuel retailing company in India, reported the Times of India.

"Going forward, our expanding retail network will be a great value creator ... Our network is expected to reach 5,000 operational outlets by the end of next year," said Ruia in the company's annual report.

After the government deregulated diesel prices, private companies such as Essar Oil were able to fully enter the market.

When the prices of petrol and diesel were heavily subsidized by the government it was hard for private companies to make a decent profit – Reliance Industries Ltd had to shut down all of its 1,432 gas stations by March 2008 due to the harsh market conditions.

"This growth was also due to the opportunity presented to the private players in the retail segment by linking the price of diesel to the market, with the rates reflecting price changes in the global markets," added Prashant Ruia.