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Jio-BP, Adani Total plan to co-locate fuel outlets hits regulatory hurdles
Talks between Reliance BP Mobility and Adani Total Gas to co-locate petrol and diesel outlets with CNG stations have run into regulatory hurdles, people aware of the discussions said. The issues of contention is the resolution of fuel retailing complexities, clearances from district magistrates and complex licensing norms.
Reliance BP Mobility is a fuel retailing joint venture of Reliance Industries and the UK’s BP, where RIL holds 51% and BP 49% stake. The companies operate their retail outlets under brand name Jio-BP.
The two companies are exploring a reciprocal arrangement under which Adani Total Gas would set up CNG (compressed natural gas) facilities at select Reliance retail outlets, while Jio-BP could add petrol and diesel dispensing at Adani Total Gas’ dealer-owned, dealer-operated (DODO) CNG stations, subject to regulatory and feasibility approvals.
“The companies are looking forward to further ease of doing business in the areas of regulatory approvals and policy support to allow “reverse co-location” of fuel retailing infrastructure,” in the CNG stations which are operated by dealers of CGD companies,” said an industry source. He added that a rule realignment would help to make such co-location feasible.
RIL and Adani Total Gas did not reply to an email query.
Adani Total Gas currently operates 680 CNG stations, while Jio-BP has a network of 2,125 outlets.
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