ONGC Defers Retail Outlet Plans

In spite of getting permission to open 1,600 retail outlets in India under the brand Oval, Oil and Natural Gas has decided to defer its plans as the government did not assure it to compensate the under recoveries, Business Line has reported quoting the chairman and managing director R S Sharma.

The Indian government has allowed ONGC to set up 1,100 retail outlets and its Mangalore Refinery and Petrochemicals to open 500 outlets. However, the government’s decision to compensate only Indian Oil, Hindustan Petroleum and Bharat Petroleum for under recoveries, has made ONGC alter its retail plans amidst rising fuel prices.

The newspaper has quoted Mr Sharma as saying: “I do not expect (oil) prices to come down. The production is not able to keep pace with demand and so prices are under tremendous pressure.”