Why competition fails to cut petrol price despite govt easing entry barrier

Despite six major firms selling fuel and govt easing entry barrier, price remains same across sellers and differs state-to-state

On October 29, a petroleum retail dealer of Reliance Industries (RIL) sold gasoline at Rs 70.41 a litre in Jamnagar in the coastal state of Gujarat. This is also the hub of petroleum production in the country. The same day, another RIL retailer sold petrol at Rs 78.87 in Patna. This price differential — induced by taxation — is the same for retail outlets of Indian Oil Corporation (IOC) that sold petrol for Rs 70.31 in Jamnagar and Rs 78.78 in Patna.

Despite six major companies, currently, selling petrol and diesel in the country, price levels for these products remain the same across