The oil ministry has allowed seven new companies to sell petrol and diesel

Approved subject to revised market transportation fuels regulations in 2019

The seven companies include RIL, RBML Solutions India, Indian Molasses Company, Assam Gas Company, MK Agrotech, Manas Agro, Onsite Energy.

New Delhi: The Ministry of Petroleum and Natural Gas has allowed seven companies to sell vehicle fuel in the country. Seven new companies have been approved to sell auto fuel, according to a senior ministry official.

The seven companies include Reliance Industries, RBML Solutions India, Chennai-based Indian Molasses Company, Assam Gas Company of the Government of Assam, MK Agrotech, Manas Agro Industries and Infrastructure, Onsite Energy.

Seven new companies have been allowed to sell petrol and diesel in 2019 on the basis of revised market transportation fuel regulations. It is hoped that the approval of new companies will increase the level of competition in the sale of petroleum products.

According to a senior ministry official, Reliance Industries has been allowed to sell petroleum products because it has transferred RIL's existing retail market organization to its subsidiary Reliance BP Mobility (RBML).

This was necessary because the Mukesh Ambani Group has restructured the chemical business from its own petroleum. Under this new rule, RBML Solutions India has been given one more right.

The new rights have been given to companies with a minimum net worth of Rs 250 crore. The minimum net worth should be Rs 500 crore if both retail and wholesale sales rights are required.

According to the 2019 rules, companies will have to open at least 100 retail outlets within five years of the sale being approved. Five per cent of which should be inland rural areas. At present, 90 per cent of petrol and diesel sales in the country are done by state-owned oil marketing companies IOC, HPCL and BPCL.