Oil Giants Bid To Reach the Indian Consumer

摘要

Big oil companies are making inroads in India’s retail fuel sector, and that could change the dynamics of the world’s fastest-growing oil market, and provide a steep challenge to the state-owned refiners and marketing companies that currently dominate the sector. Integrated majors BP and Royal Dutch Shell plan major expansions in India, and can offer slicker service and competitive pricing to lure customers. Rosneft and Trafigura, which teamed up to buy a controlling stake in India’s Essar Oil last month, gain access to a strategic market for their vast portfolio of crude (PIW Oct.24’16). BP has a license to open 3,500 fuel stations to sell diesel and gasoline, while Rosneft and Trafigura now have access to 2,700 — with plans to expand to 5,000 — following the $13 billion deal to buy 98% of private Essar Oil, which owns the 400,000 barrel per day Vadinar refinery. Shell, which used to be the only foreign company with a presence in India’s retail space, is working on reaching 2,000 stations, although it only has 82 now (PIW Oct.24’16). Oil giant Saudi Aramco had its eye on Essar too, given its intention to build out the world’s largest refining capacity to balance out its massive upstream arm. Indian Oil Corp., Bharat Petroleum Corp (BPCL), Hindustan Petroleum Corp., which together operate over 52,000 fuel outlets and command 94% of the market, are already unnerved. BPCL is now concentrating on non-fuel business like financial services and agri-advisory at their fuel stations.