October 17, 2008
Essar Restarts Operations at Mothballed Indian Petrol Stations
Indian oil refiner and fuel retailer Essar has said that it will be restarting its indefinitely-shutdown petrol stations across India as crude oil prices have dropped below $70 per barrel.
Essar had begun restarting approximately 1,250 petrol bunks in the country in August 2008, and has already made around 300-350 outlets operational, mostly in the southern and western parts of India.
While the government extended support to the state-owned companies by partly compensating them for losses due to subsidies, private companies like Essar and Reliance have not received any such aid.
Essar has been selling a liter of petrol at up to INR5 higher and a liter of diesel at up to INR10 higher than the state-owned companies.