Reliance Industries has decided to reopen all its 1,400 petrol pumps this fiscal owing to diesel price decontrol.
“Over 320 retail outlets already operational. Target restart of entire network of 1,400 outlets in FY16,” RIL said in an investor presentation.
Reportedly RIL had shut down all its 1,432 petrol pumps around March 2008 because of huge losses it incurred in trying to match public sector firms, which sold fuel at rates much lower than their cost due to government subsidies.
The government in June 2010 deregulated or freed petrol pricing by not providing any more subsidies. This allowed Essar to re-enter the retailing arena, selling only petrol from most of its 1,400 outlets.
Diesel was deregulated in October last year and since then the private retailers have again entered the market.