`500-cr net worth must to sell petrol and diesel

New Delhi, Aug. 4: The government on Tuesday said any entity with a net worth of at least Rs 500 crore is eligible for obtaining the liberalised licence to sell petrol and diesel to retail and bulk consumers.

Clarifying on the November 2019 liberalised fuel licensing regime, the Ministry of Petroleum and Natural Gas said any entity with a net worth of Rs 250 crore can get a licence to retail petrol and diesel to either bulk or retail consumers. For those seeking authorisation for both retail and bulk should have a minimum net worth of Rs 500 crore at the time of application.

Last year, the Centre had relaxed norms for retailing auto fuels, allowing non-oil companies to venture into the business, a move that could help private and foreign firms to enter the world's fastest-growing market.

Prior to that, a company had to invest Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas terminals to obtain a fuel retailing licence.

The ministry said applications may be submitted directly to the ministry. "For retail authorisation, the entity is required to set up at least 100 retail outlets," it said.