It was 2006, Reliance literally slaughtered the market share of PSU. A company which has just 1-2 years of track record, took 13% market share in 1 year of full fledged operations. PSU were clueless what to do. Thank god, that the PSU got a ventilator time when the price again zoomed and subsidy kicked in. With subsidy the kick backs again started in this dirty sector. The inefficiency and corruption within Oil PSU is none of a secret.
Now the wheel has turned again, prices are down for atleast next 5 years (and may be more if Elon Musk got the new Teslas firing). Private players are again pushing up their game
1. Essar is focusing on low volume outlets
2. Reliance on high volume
So, in a place like Rewari, where Essar has got 20 pumps in recent time, it hardly left anything for the new commissioning by PSU's. So, the market is getting crowded and competition is increasing. This will introduce margins squeeze for the PSU's which will squeeze the margins for the dealers also. In such a scenario, Petrol pump does not seems to a good business.
Now the wheel has turned again, prices are down for atleast next 5 years (and may be more if Elon Musk got the new Teslas firing). Private players are again pushing up their game
1. Essar is focusing on low volume outlets
2. Reliance on high volume
So, in a place like Rewari, where Essar has got 20 pumps in recent time, it hardly left anything for the new commissioning by PSU's. So, the market is getting crowded and competition is increasing. This will introduce margins squeeze for the PSU's which will squeeze the margins for the dealers also. In such a scenario, Petrol pump does not seems to a good business.
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