Explained: Why are global majors queuing up for Indian oil retail market?

Global majors are bullish on fuel retailing, but recent mega-expansions by state-owned oil majors will crowd the field

In December 2018, Udaipur, the city of lakes, was the centre of attention as the pre-wedding festivities of Mukesh Ambani’s daughter, Isha, got underway. But for those in the oil industry the lavishness of the celebrations hosted by India’s richest man was of incidental interest. On the sidelines, Saudi oil minister Khalid al-Falih met Ambani, sparking speculation about a tie-up between the world’s largest oil producer, Saudi Aramco, and Reliance Industries (RIL) — including for a retailing partnership. Later, al-Falih clarified that the discussions centred on tie-ups for a refinery and for petrochemicals. 

Still, Saudi Aramco’s interest in oil retailing is