RIL talking to Essar to buy fuel for retail outlets

Reliance Industries Ltd (RIL) is in talks with Essar Oil to source petroleum products from the latter’s refinery in Vadinar in Gujarat in a bid to restart its retail outlets, which have been shut for nearly a year. Reliance aimed to restart the outlets early next next week from Gujarat and Maharashtra, said informed sources.

The Essar group owns over 1,100 petrol pumps and it will be difficult for it to cater to all Reliance-owned pumps, say sources. “Essar will supply only in Gujarat and Maharashtra,” said a source. Reliance has over 1,400 petrol pumps, 60 per cent of which are in Gujarat and Maharashtra.

 

Reliance has its own refineries at Jamnagar but these are export oriented. Hence, it is looking to buy petroleum products from various companies, including Essar. An RIL spokesman confirmed talks with various companies, including Essar.

“With public sector companies like IOC and HPCL not keen to offload their products to private companies, Reliance is in talks with Essar to source products to restart its outlets,” said a government official familiar with the development.

In the past, when both Essar and Reliance had their petrol pumps running at full throttle, the two companies had an agreement to exchange products like petrol and diesel without direct selling or buying, sources said. The agreement also enabled the two to share infrastructure.

An Essar group spokesperson declined comment. He, however, said the company was open to selling its products to other oil marketing companies, including Reliance.