Date:12/02/2004 URL: http://www.thehindu.com/2004/02/12/stories/2004021203061600.htm

Business

MRPL allowed to set up petrol stations

By Our Special Correspondent

NEW DELHI, FEB. 11. The Central Government today allowed Mangalore Refinery and Petrochemicals (MRPL), a subsidiary of the Oil and Natural Gas Corporation (ONGC), to market transport fuels under its own name and logo. The decision has been taken, according to an official release since the company, which operates 9.69 million tonnes refinery at Mangalore in Karnataka, fulfils the investment requirement of Rs. 2,000 crores in the building of infrastructure in the hydrocarbon sector.

Accordingly, MRPL will set up 500 petrol pumps initially including 11 per cent in low service and remote areas as required by the stipulations granting marketing rights. It thus becomes the sixth new entity, which has been allowed to market transport fuels after deregulation of the oil sector in order to increase competition and widen marketing infrastructure for petrol and diesel. With this, the authorisation for setting up petrol stations has risen to 11,659 which is about 56 per cent of the existing 20,885 retail outlets. Earlier, marketing rights were given to Reliance, Shell India, Essar Oil, ONGC and Numaligarh Refinery.