How move to allow new players in fuel marketing can be made more effective

The govt has taken a major step towards liberalising its policy on petroleum retail; now, refinery pricing needs to be made more transparent

A few days before Diwali, the Union government took a major step towards liberalising its policy on retail marketing of petroleum products. It is the biggest decision taken in this area in the last 17 years. In 2002, retail marketing of petroleum products was thrown open to the private sector provided the applicant would commit to investing at least Rs 2,000 crore in the petroleum sector. Last week’s decision has allowed any entity to undertake retail marketing of petroleum products provided its net worth is valued at over Rs 250 crore. 

The expectation is that many non-petroleum players would be