India’s petrol pump network has just hit a significant milestone, surpassing 100,000 stations. This growth is quite remarkable; the number has doubled since 2015. Much of this expansion comes from state-owned companies that are working hard to widen fuel access, especially in rural areas and along highways.
As of November, there were 100,266 petrol pumps in India, making it the third largest network in the world, following the US and China. More than 90% of these pumps are operated by major state-run companies like Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL). Nayara Energy, backed by Russia’s Rosneft, has the largest number of private outlets at 6,921, while Reliance and BP jointly own 2,114 stations.
The change has been striking. In 2015, there were only 50,451 petrol stations, and private firms held just 5.9% of the market. Today, that figure is 9.3%. Private participation has been around since 2004 but has always faced challenges due to the government’s influence on fuel pricing and market dynamics.
Historically, petrol and diesel prices were once completely free. However, government-owned retailers later began controlling pricing again. Just recently, in November 2021, state-owned companies stopped adjusting prices daily to reflect market changes. This can make it harder for private retailers to operate profitably. As a result, many stations, especially in less-trafficked areas, are struggling financially.
A notable trend is the increase in rural petrol pumps. They now account for nearly 29% of all outlets, which is up from 22% a decade ago. This shift highlights the growing vehicle ownership in the countryside. Many of these stations are also adapting to modern needs, offering alternative fuels like compressed natural gas (CNG) and electric vehicle charging stations.
In comparison, the US has around 196,643 retail gas stations, although this number could vary as some may have closed. China follows with approximately 115,228 gas stations, led by Sinopec, which operates over 30,000. While China has fewer outlets than India’s leading retailer, IOC, which boasts 41,664 stations, the market dynamics are vastly different.
In summary, India’s petrol station network has not only expanded significantly but is also evolving to meet changing consumer needs. This transformation reflects the broader trends of increased car ownership and a growing emphasis on alternative fuels, setting the stage for a more diverse energy landscape in the country.
For more on the state of fuel retailing in India, you can visit the Petroleum Planning & Analysis Cell.
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