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Pvt oil cos may be allowed to set shop before APM dismantling

Private sector oil companies are likely to be allowed to set up retail outlets for petrol and diesel before actual dismantling of administered pricing mechanism for petroleum products from April 2002.

The high-level Naresh Narad Committee on 'Regulation of Marketing of Controlled Petroleum Products' has recommended that "private sector companies fulfilling the conditions stipulated by the government may be allowed to set up retail infrastructure for petrol and diesel immediately."

The recommendations of five-member committee, headed by Naresh Narad, additional secretary, petroleum, appointed to draw road map for oil marketing through dismantling of APM by April, 2002, are likely to be tabled before the Cabinet by the month-end for final decision, highly placed sources said.

The committee has suggested that private sector companies take supplies of petrol/diesel from the storage points of public sector oil marketing companies and sell at state price through their retail outlets.

However, bulk marketing of petrol and diesel would be retained with public sector oil marketing companies. Besides, marketing of subsidised products - kerosene for public distribution and domestic cooking gas - would continue to be with public sector oil companies till APM was dismantled.

Private sector Reliance Petroleum and Essar Oil and joint sector Mangalore Refinery and Petrochemicals Ltd, who have invested or committed a stipulated Rs 20 billion in the sector, have sought to set up retail marketing infrastructure before April, 2002, sources said.

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