Question : Agreements between Government and the Petroleum Companies

(a) the total number of private and public sector petroleum companies dealing in diesel, petrol and gas in the country;
(b) the terms and conditions of the agreements reached between these companies and the Government; and
(C) whether the private companies are allotting petrol pumps and gas agencies in the country and if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (c)-
As regards Retail Outlets, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), Mangalore Refinery and Petrochemicals Limited (MRLP) and Numaligarh Refinery Limited (NRL) are the Public Sector Petroleum Companies presently engaged in sales of petrol and diesel in the country. Reliance, Essar and Shell are the private companies presently engaged in sales of petrol and diesel in the country.

Government Resolution dated 08.03.2002 of this Ministry has a provision for granting marketing rights of Motor Spirit (MS) / High Speed Diesel (HSD)/ Aviation Turbine Fuel (ATF) to the new entrants, including the private sector, subject to the conditions mentioned therein.

Allotment of petrol pump is a commercial decision of Private Companies. The details of number of petrol pumps set up by Private Oil Company`s as of 01.04.2017 are as under :-

-2-
Private Oil Company
Total No. of Retail Outlets
RIL
1400
ESSAR
3499
SHELL
85
TOTAL
4984

As regards LPG Distributorships, IOCL, BPCL and HPCL are engaged in sales of LPG in the country.

Parallel Marketeer (PM) System was introduced in the country in 1993 wherein Parallel marketers were required to source LPG through imports for their requirement. Further, Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 and LPG (Regulation of Use in Motor Vehicles) Order, 2001, which were notified in the year 2000 and 2001 respectively, prohibit sale of LPG by any person other than a Government Oil Company, a parallel marketeer or a distributor to the consumer.

Any entity desiring to operate as a parallel marketeer of LPG is required to obtain certificate from any of the four rating agencies mentioned in the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 and LPG (Regulation of Use in Motor Vehicles) Order, 2001 as applicable. Further, the entity is required to follow rules and regulations as contained in various relevant acts and orders including the two orders mentioned above. A list of PMs holding rating certificate from any of the four rating agencies as on 01.01.2017 is given at Annexure.
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