India has become the world’s third largest fuel retail market after its network of petrol pumps crossed the 100,000 outlet mark, nearly doubling over the past decade. The rapid expansion has been driven largely by state-owned oil marketing companies (OMCs) aiming to meet rising vehicle demand and extend fuel access to semi-urban and rural regions.
With this milestone, India now trails only the United States and China, both of which operate around 110,000–120,000 fuel stations despite having significantly larger land areas. The growth reflects India’s expanding vehicle population and improving road connectivity, particularly outside major cities.
However, private players continue to have a limited footprint, accounting for less than 10% of total fuel outlets. Reliance Industries reportedly operates about 2,100 pumps, while Nayara Energy runs approximately 6,900 outlets nationwide. Industry experts attribute this imbalance to continued government influence over retail fuel prices, which has constrained margins and dampened private investment despite policy liberalisation.
Fuel consumption trends show mixed signals. Over the past decade, petrol consumption has surged 110%, while diesel usage rose 32%, taking combined petrol and diesel demand up by nearly 50%. Diesel continues to dominate outlet economics, with average diesel sales per station almost double those of petrol, underscoring its importance in transport and logistics.
Concerns over economic viability are increasingly visible, particularly in rural and low traffic regions. Nitin Goyal, treasurer of the All India Petroleum Dealers Association, noted that aggressive expansion risks hurting older outlets and warned that the market may be approaching saturation.
Industry executives believe India’s fuel retail network could plateau in the coming years, similar to the US, where station numbers declined due to competition and efficiency pressures. To sustain revenues, dealers are increasingly looking at gas dispensing, convenience retailing, and electric-vehicle charging as alternative growth avenues.
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