Economics can support another 30,000 petrol pumps, says CRISIL report

CRISIL pegged the current throughput of these outlets at 160 kilo litres a month (KLPM), which is less than half of what it is for a developed country like the US

The petroleum ministry’s efforts to further expand the country’s retail fuel network may eat into its own existing market, instead of catering to a new one, a report by rating agency CRISIL has suggested. The planned expansion would be feasible if stopped at less than half its target, it said. 

In November 2018, the government allowed the three oil marketing companies (OMCs) — Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) — to add 78,493 pumps combined to their existing retail network. 

“The economics do not support the addition of 78,000 petrol pumps. There is room for