IOC eyes 52,000 fuel retail outlets in 3 years
New Delhi   30-Aug-2018

State run-Indian Oil Corporation aims to almost double its fuel retail network to 52,000 outlets over the next 3 years from 27,000 now. IOC, India''s largest fuel retailer, accounts for 44% of the market despite the entry of private sector in the segment.

"IOC is also investing in the retail segment. With over 50,000 new fuel stations and LPG distributorship coming up in the next few years, benchmarking to global standards and generating additional revenue streams from non-fuel business is an idea worth exploring by oil marketing companies," chairman Sanjiv Singh said. The company''s executives said that the three state-run oil marketing companies are likely to add 50,000 fuel retail outlets over the next three years, of which 25,000 would be by IOC while the rest will be split equally between Bharat Petroleum Corporation and Hindustan PetroleumNSE -1.82 % Corporation. This will help the company maintain its market share. "The company aims to double its refining capacity to 140 million tonne per annum by 2030, and has accordingly undertaken brownfield expansions at Chennai Petroleum Corporation, and is also preparing to set up a 9 million tonne per annum refinery at Nagapattinam in Tamil Nadu," Singh said.

IOC, which sources a substantial share of crude for running its refineriesNSE 0.00 % from Iran, is awaiting the Indian government''s decision on imports from the country. The US has told all countries, including India and China, to stop their oil imports from Iran by November 4 or face sanctions. "Iran imports are suitable for us as they offer us good terms and conditions. We will be perfectly fine with whatever the government will decide. We have other options available and the flexibility with other countries to source crude," Singh said. IOC is upbeat on gas marketing business and has plans of investing on infrastructure to support it. "Investments close to Rs 20,000 crore are being envisaged in city gas distribution alone over the next five to eight numbers," Singh said.