Ahmedabad: Buoyed by the decontrolling of petrol prices, Reliance Industries Limited (RIL), the largest private sector firm by market cap, on Tuesday announced that the firm has re-opened its fuel retail network across Ahmedabad and other parts of Gujarat.
On 25 June, the government had freed price of petrol linking it to market rates, and increased price of diesel by Rs2 per liter, kerosene by Rs3 and cooking gas by Rs35 per 14.2 kg cylinder.
With the decontrol of petrol pricing, the RIL fuel retail outlets now retail petrol at price parity with public sector undertakings, a release from RIL states.
“The company has resumed sales of petrol in around 162 petrol pumps from Tuesday. Out of these, 59 pumps are company owned, company operated while the rest are dealer owned, dealer operated and company owned, dealer operated pumps,” a company spokesperson said.
According to industry sources, Reliance Industries had shut down its 1,432 fuel outlets across the country in March 2008 following increasing losses on sale of auto fuels at competitive prices.
However, in the latter half of 2008 when crude oil prices started falling again RIL had restarted some of its operations.
“Earlier we were at a disadvantage as RIL was not covered under the government subsidy. Now, with the deregulation of petrol, there is a level playing field and Reliance Petrol will now be sold at the same price as that of the other oil companies,” a company spokesperson said.
If the government announces diesel deregulation, then diesel like petrol, will also be available at market rate. However, Reliance Diesel is also sold at the same price as that of competition presently. Reliance will resume operations across all pumps, across, the release said.