The Hindu Business Line : Reliance puts fuel retail biz on `maintenance mode'

Reliance Industries has put its fuel retailing business on "maintenance mode" and a decision on the business will be taken once the Petroleum and Natural Gas Regulatory Board is formed. Talking to Business Line, Mr R.B. Shahi, President - Retail of RIL, said, "We are losing heavily on the fuel retailing business and have kept it on the maintenance mode. We are waiting for the regulatory board to be set up to raise those issues and seek a level-playing field."

Mr Shahi said the company's plea to share products and pipelines with the PSU oil companies had so far been turned down by them.

"The bulk of the oil pipeline was built in APM (administered price mechanism) era. Accordingly, it should now be available for use by the new entrants," Mr Shahi said.

On the subject of price revision for transportation fuels, Mr Shahi said: "In case the Government dictates another price cut in PSUs, we will be able to match the prices only in areas like western Maharashtra, coastal Andhra Pradesh (where fuel can be transported through ships), parts of Madhya Pradesh and others."

Prices, however, will continue to remain higher than the PSU level in larger parts of northern and eastern regions (including Punjab, Uttar Pradesh, Bihar, Jharkhand, West Bengal and others) due to higher freight cost. RIL has substantial number of outlets in these States.

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