India’s oil marketing sector was long a government preserve. Until the early 2000s, nearly 100% of fuel retail – petrol, diesel and LPG sales – was controlled by three state-owned OMCs (IOC, HPCL, BPCL).Starting in 2002, gradual deregulation began to change this. In 2002 the government deregulated petrol and diesel pricing, allowing private firms (Reliance, Essar, Shell, etc.) to enter the market. Reliance Industries (through Reliance Petroleum Ltd) quickly built a large refining-and-marketing business: by 2006 Reliance had captured roughly 14% of India’s diesel market. However, as international crude prices rose, the government tightened controls again. State OMCs aggressively expanded their outlet networks – tripling them since 2002. to defend market share. By the mid-2010s PSUs once again operated ~95% of fuel pumps.
Another watershed came in October 2014, when diesel subsidies were removed. This “decontrol” of diesel prices, coupled with ongoing petrol decontrol (completed by 2010), reopened opportunities for private marketers. Relieved of selling diesel at a loss, PSUs no longer needed to keep pump prices as high as before. Private OMCs (unburdened by legacy subsidies) re-entered aggressively. In particular, Nayara Energy (formerly Essar Oil) and Reliance-BP began undercutting PSU prices by up to ₹2–3 per litre. The result was a modest but steady gain in private market share: for example, in Apr–May 2025 private companies’ share of diesel sales rose to ~11.5% (from 9.6% a year earlier) and of petrol sales to ~10% (from 9%). Key Private OMCs and Timeline of Growth
Since deregulation, India’s private OMC sector has remained small but has grown. Major players include:
Reliance BP Mobility (Jio-bp) – a 51:49 joint venture of Reliance Industries Ltd. and British BP. RIL had long built the Jamnagar refinery and related marketing arms (Reliance Petroleum Ltd), and in 2019 formally partnered with BP to expand retail fuel sales. The JV (branded Jio-bp) operates thousands of fuel stations. As of early 2024 it ran ~1,700 outlets. and plans roughly 250 more (to ~1,950) by end-2024. The partnership aims to build ~5,500 stations over five years and it is aggressively adding EV chargers (about 4,200 today, targeting ~7,500–8,000).
Nayara Energy – formerly Essar Oil, renamed after Rosneft’s 2017 acquisition. It owns the 20 MMTPA Vadinar refinery (one of India’s largest) and an independently expanding retail network. Nayara (49.13% owned by Russian Rosnet is India’s largest private fuel retailer, with about 6,921 petrol stations as of late 2025 (operating an integrated “dealer-owned, dealer-operated” network). Reuters notes Nayara provides ~8% of India’s refined fuel output and “operates more than 6,500 gas stations”
Shell India – the domestic arm of Royal Dutch Shell, re-entered downstream retail in recent years. It operates on the order of a few hundred outlets (about 346 by 2025 under its fuel brand.
Other Private OMCs – Several smaller companies (e.g. Rajdeep Oil, Indraprastha Gas for CNG, regional chains, foreign intermediaries) also hold a tiny fraction of outlets. One example of a partnership in this segment is Nayara itself (see above). Another is RIL’s joint venture with BP (Jio-bp). (For completeness, it is worth noting that Indian Oil’s minority stake JV “Air BP” supplies aviation fuel, and that state OMCs themselves have used partnerships – e.g. BPCL’s sold-for-Strategic-Disinvestment case – but these are PSU-led.)
The chart below summarizes outlet counts in 2025:
| Company | Ownership | Retail Outlets (approx.) | Share of Total Pumps (2025) |
|---|---|---|---|
| Indian Oil (IOC) | Public (PSU) | 41,664 | 41.6% |
| Bharat Petroleum (BPCL) | Public (PSU) | 24,605 | 24.5% |
| Hindustan Petroleum (HPCL) | Public (PSU) | 24,418 | 24.3% |
| Nayara Energy (Rosneft-JV) | Private | 6,921 | 6.9% |
| Reliance BP (Jio-bp) | Private (RIL-BP) | 2,114 | 2.1% |
| Shell India | Private | 346 | 0.3% |
| Total (All companies) | – | 100,266 | 100% |
Table: Number of petrol/diesel retail outlets by OMC, late 2025 (Ministry of Petroleum data via PPAC)
This table makes clear the dominance of PSU OMCs (~90% of outlets) versus private chains (~9.3%). Private participation began only in FY2004 (27 pumps in 2003–04) By 2015 private OMCs had only ~5.9% of outlets rising to about 10% by 2019 and ~9.3% by 2025 as PSUs further expanded.
Policy and Regulatory Changes
Several policy shifts have shaped this evolution:
- Price Deregulation (2002–2014): Early reforms (2002) first allowed market pricing for petrol and diesel Diesel pricing was fully deregulated in Oct 2014. Removing subsidies (especially on diesel) was crucial: PSUs no longer had to offset huge losses from subsidized diesel/LPG sales, and private firms without subsidy obligations could price more flexibly. (Indeed, in FY2024-25 state OMCs bore ₹41,266 crore in LPG losses with no compensation a burden absent for private chains.)
- Liberalised Licensing (2019 reforms): In Oct 2019 the government liberalized fuel retail rules to attract private and foreign entrants Key changes lowered the net-worth requirement (₹2,000 cr → ₹250 cr) and allowed even non-oil companies to obtain authorizations. Foreign investment up to 49% (in joint ventures/with approval) has been permitted, drawing interest from majors like Aramco, Total and others. The new policy also mandates that new private retailers set up at least 5% of outlets in “remote” areas within five years to ensure rural coverage. These reforms were intended to ease entry and speed up network expansion for private players.
- Essential Commodities Regulation: Fuel products remain “essential commodities,” meaning the government reserves the right to regulate production, supply and distribution under the EC Act In practice, this means occasional price controls or dealer license rules can be imposed, and even pump “takeover” powers exist to ensure supply. Both public and private OMCs must abide by these regulations and follow marketing discipline guidelines issued by the Ministry and PNGRB.
- Upstream/Downstream Reforms (2025): Very recently (late 2025) India overhauled oil & gas laws by enacting the Oilfields Regulation & Development Act, 2025 and new Petroleum & Natural Gas Rules, 2025. Though focused on upstream licensing, these also signal a more investor-friendly environment across the hydrocarbon sector. It is expected to further streamline entry and business operations (including downstream pipelines and refineries) – indirectly benefiting private OMC investments.
Market Share Trends
Despite liberalization, public OMCs still control the lion’s share of the fuel market. Official data show that over 90% of India’s ~100,000 fuel stations (as of 2025) are owned by IOC, BPCL and HPCL.