By TN Ashok / Economics Editor
New Delhi, Sept 21: Petroleum and Natural Gas Minister Dharmendra Pradhan today admitted that entry of private players in retailing petroleum products had brought in competition and raised the standards of customer service across the country for all oil refiners.
“The Government deregulated pricing of diesel in October 2014 and linked it to market prices. This initiative encouraged private players like Essar, Reliance & Shell re-enter the market and set up more than 3000 ROs across the country”, Pradhan pointed out while addressing the consultative committee meeting of parliament attached to his ministry at Mumbai today.
The Petroleum Minister said the resulting competition from entry of private players brought focus of all players on higher levels of customer service standards and enhance customer value proposition through retail automation, automated billing, soft payment options through credit-debit card facility, loyalty programs, branded fuels, cleaner gaseous fuels etc.
Also, increased customer reach was achieved through focused network expansion particularly in rural and highway segment. “Oil Companies are pursuing network expansion to ensure coverage of all significant points of consumption including the remote areas. At present there are 53,800 retail outlets in the country and another estimated 32,000 new Retail outlets are required over the next 10 years to cater to the growing customer needs.”, he said.
The Consultative Committee discussed marketing of petroleum products in a competitive environment. The Minister of State for Parliamentary Affairs Rajiv Pratap Rudy also attended the meeting. The Petroleum Minister set the context of the meet by quoting Hon’ble Prime Minister “I believe government has no business to do business. The focus should be on Minimum Government but Maximum Governance”.
Pradhan observed that the Government has initiated various measures to revive India’s economy, promote investment in manufacturing, rationalize tax provisions, etc. which were also reflected in our Union Budget 2015-16. “Oil & Gas is one of the six core sectors in India which besides being strategic in nature, is also pivotal to all other major social, agricultural, economic and industrial activities across the length and breadth of our country and thus has far reaching influences on other important spheres of the economy in general.”, he said.
“” Our country’s aspirations of high levels of economic activities and GDP growth would directly translate to much higher estimates of demand and consumption of petroleum & gas products in the coming period. Accordingly, marketing aspect of petroleum products play a critical role”, he pointed out.
A well-regulated, competitive market structure increases benefits to consumers by providing them more choices, assured quality, services of international standard and at the same time also ensures that market players become more efficient, innovative and customer friendly, the minister said.
As part of clean & green Initiatives, PSU OMCs have been actively promoting use of Ethanol in Petrol and Bio-diesel in Diesel. These initiatives will help in connecting the farmers with direct economic activity and cash flow. OMCs are also initiating Vapor Recovery System (VRS) at Retail Outlets to improve the quality of air at the Retail Outlets, he said.
The Petroleum Minister stated that the Government proposes to play a vital role in creating the basic policy – regulatory framework within which a fair and open competitive market can exist and operate in an efficient manner and also ensure that consumer interests are also adequately protected.
Pradhan further elaborated several consumer centric initiatives taken by Government and Oil Marketing Companies in marketing of LPG for enhancing consumer convenience, choices and also preparing Industry for competitive LPG marketing. He also stressed upon the need of similar improvement in marketing of other petroleum products like ATF, Kerosene,PNG,CNG,Lubricants,other petroleum products and petrochemical feedstock.
MPs attached to the committee raised various pertinent issues and gave valuable suggestions to improve marketing standards of petroleum products. Secretary Petroleum, senior officers of the Ministry of Petroleum & Natural Gas and CMDs of Public Sector Companies attended the meeting.
