Country’s oil marketing companies which are betting big on retailing natural gas are going back to the drawing board as India’s gas regulator PNGRB has barred them from setting up compressed natural gas dispensing units in their fuel retail outlets.
Currently, the oil marketing companies–Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have let out space in their fuel retailing stations for compressed natural gas supplies to city gas distribution companies including Mahanagar Gas Ltd and Indraprastha Gas Ltd.
“Now we will have to strategize if there are other retail outlets that we can convert into CNG retailing units. Natural gas retailing is a crucial segment for oil companies and we will have to redraw our strategies,” said the CEO of an oil company which is also into city gas distribution business.
Officials from IOCL, country’s largest oil marketing company said the company is closely monitoring the developments and is keen on increasing its presence in the city gas distribution segment.