Guidelines Issued on Marketing of Transport Fuels

Ministry of Petroleum and Natural (MoPNG) Gas vide Resolution dated 08.11.19 revised the guidelines for authorization to market transportation fuels which have been published in the Gazette of India. The revised guidelines would promote ease of doing business and boost private players including foreign players to invest in retail sector. The said Resolution is available on the website of MoPNG. The main features of the said guidelines are as below :-


  1. The resolution applies for marketing of only Motor Spirit and High Speed Diesel for “Bulk” and “Retail” business.
  2. An entity desirous of seeking authorisation for either retail or bulk must have a minimum net worth of Rs. 250 crore at the time of making application. In case authorization is required for both retail and bulk, minimum net worth will be Rs.500 crore.
  3. Separate applications to be made for retail and Bulk business.
  4. Non-refundable application fee of Rs. 25 lakh is applicable.
  5. For retail authorisation, an entity has to set up at least 100 retail outlets, out of which 5% should be in the notified remote areas within 5 years of the grant of authorization. An effective mechanism has been prescribed to ensure that the entity delivers on its commitment to set up the ROs in remote areas.
  6. An entity is required to deposit prescribed Bank Guarantee amount as a security at the time of grant of authorization in addition to application fee.


This Information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan in a written reply in the Rajya Sabha today.