India becomes world's third-largest fuel retail market with 100,000 pumps

India now ranks third globally in fuel retail network after the US and China, each of which operates 110,000-120,000 pumps across much larger geographies

India’s network of petrol pumps has expanded beyond 100,000 outlets, almost doubling over the past decade as state-owned oil companies ramped up expansion to meet rising vehicle demand and extend fuel access into rural regions, The Economic Times reported.

 

India now ranks third globally in fuel retail network size, behind the United States and China, which operate about 110,000–120,000 pumps each across far larger land areas.

 

B Ashok, former chairman of Indian Oil Corporation, told The Economic Times that the rapid expansion has largely eased access constraints in rural and remote areas and improved customer service by intensifying competition.

   

How has rural fuel access changed?

 

Rural outlets now account for 29 per cent of India’s total petrol pumps, up from 22 per cent a decade ago, the report said. The fuel retail network has also evolved, with outlets no longer limited to petrol and diesel.

 

Nearly one-third of fuel stations now reportedly offer alternative options such as compressed natural gas and electric-vehicle charging, reflecting a gradual diversification of services.

 

Why do private firms have a smaller presence?

 

Despite policy reforms over the past decade, private companies account for less than 10 per cent of India’s petrol pumps. Reliance Industries reportedly operates about 2,100 outlets, while Nayara Energy runs around 6,900.

 

Continued government influence over retail fuel prices has discouraged private investment. Industry experts have also questioned whether the pace of expansion is economically sustainable.

 

In April this year, Harish Mehta, then chief executive of Reliance BP Mobility, said India had too many fuel stations, describing the country as “overpopulated” in fuel retail terms and comparing it with Indonesia, which has about 9,000 stations.

 

What does fuel consumption data show?

 

According to the report, India’s petrol consumption has risen 110 per cent over the past decade, while diesel consumption increased 32 per cent. Combined petrol and diesel volumes have grown by nearly 50 per cent.

 

Average diesel sales per outlet are almost double those of petrol, reflecting continued reliance on diesel across transport and logistics.

 

Where is economic stress most visible?

 

Nitin Goyal, treasurer of the All India Petroleum Dealers Association, said economic unviability is most evident outside cities and stressed the need to balance expansion so that older outlets remain viable.

 

The report, citing industry executives, said the fuel retail network may plateau, arguing that India now has sufficient outlets to meet current and future fuel demand for many years.

 

In contrast, the US has seen fuel station numbers fall over time as competition forced inefficient outlets to shut. “The US has a fully deregulated market, but in India, pump prices are nearly identical. Even so, persistently low-volume outlets may eventually exit,” Goyal said.

 

Industry executives added that expanding services such as gas dispensing and electric-vehicle charging could help fuel stations improve revenues as alternative-fuel vehicles gain wider acceptance.