 "BPCL targets expanding retail network by 14,273 pumps to tap growing demand")
In order to improve its share in the swiftly growing domestic fuel market, Bharat Petroleum Corporation Limited (BPCL) is making plans to widen its fuel retail network by 14,273 pumps, according to a report by The Economic Times (ET).
VRK Gupta, director (finance) at BPCL, was quoted as saying that the company had recently issued an advertisement for 14,273 new retail outlets.
As the demand for petrol and diesel continues to rise due to new vehicle sales, the company is moving ahead with its fuel network expansion plans. BPCL already runs a quarter of the country's petrol pumps.
The actual rollout will depend on dealers' interest and the commercial viability of the sites. In the last five years, India's fuel retail network has increased by nearly 40 per cent to about 88,000 pumps, sustained chiefly by expansion by state-run firms. Indian Oil Corporation alone runs about 36,700 pumps or about 42 per cent of the total. BPCL and HPCL operate a similar number of pumps, around 21,300.
BPCL's record profit this year has been fuelled by higher refining margins, cheaper Russian crude oil, and a pause on domestic BPCL processed in the second quarter consisting of Russian crude. State refiners have also reduced their borrowings due to rising profits. BPCL's gross borrowings have decreased by Rs 5,000 crore sequentially to Rs 22,500 crore.
BPCL intends to spend Rs 1,50,000 crore in five years. A third of the Rs 1,50,000 crore capex will be invested by the company into adding refining and petrochemicals capacity. BPCL will also invest around Rs 26,000 crore each into upstream, city gas and marketing infrastructure.