India's fuel retailers expand gas station networks

Oil companies are expanding their retailing networks in India encouraged by an increasing demand for petroleum products.

Amid fierce competition from public sector oil companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), private companies like Industries (RIL) and Essar Oil are rapidly expanding their gas station networks.

In 2015 alone, more than 3,000 filling stations are expected to open their doors, either because they have been newly created or re-opened, according to The Hindu.

RIL has already reopened 450 gas stations, and is planning on reaching 1,000 reopened operational stations by the end of 2015.

Meanwhile, Essar Oil reopened 1,550 gas stations and has an extra 1,600 in development. The new ones will be operational within the next 9 to 12 months,” said a company official.

Due to the collapse of Brent oil, which fell from $100 a barrel to $50, Indian motorists have enjoyed lower fuel prices, bumping up consumption of gasoline by 12% and diesel by a timid 2.8%.