Govt Reviews Petrol Pump Licensing Rules to Boost Efficiency, Alternative Fuels

New Delhi — The Ministry of Petroleum and Natural Gas has set up an expert committee to review the 2019 licensing norms for petrol pumps, with a focus on improving market efficiency and aligning with India’s goals for alternative fuels, decarbonisation, and e-mobility.

According to the order, the panel will assess the effectiveness of the current framework in ensuring energy security, align policies with the country’s commitments on clean energy, and address implementation challenges. The government is also considering whether the norms should be further liberalised.

The committee is chaired by former BPCL Director (Marketing) Sukhmal Jain, with members including Petroleum Planning and Analysis Cell (PPAC) Director General P. Manoj Kumar, FIPI member P.S. Ravi, and Petroleum Ministry Director (Marketing) Arun Kumar.

The 2019 reforms allowed companies with a net worth of ?250 crore to sell petrol and diesel, provided they committed to setting up infrastructure for at least one alternative fuel — such as CNG, LNG, biofuels, or EV charging — within three years. Firms serving both retail and bulk customers faced a ?500 crore net worth requirement. Before that, companies needed to invest or commit ?2,000 crore in oil exploration, refining, pipelines, or LNG terminals to qualify.

The ministry has invited feedback from the public and stakeholders within 14 days from August 6 on the proposed changes.

Global players such as Total, BP, and Saudi Aramco have shown interest in India’s fuel retail sector. Currently, public sector giants Indian Oil Corporation (40,666 outlets), Bharat Petroleum, and Hindustan Petroleum (around 24,000 each) dominate the country’s 97,804 petrol pumps. Private players — including Reliance Industries, Nayara Energy, and Shell — hold a comparatively small market share.

With inputs from IANS