Reliance Petroleum, the fuel retailing arm of Reliance Industries Limited (RRL), has decided to shut operations of about 900 company-owned petrol stations in the country.
Confirming the news to Indiaretailing, a Reliance spokesperson said, “In a week’s time the outlets will stop selling fuel.”
However, the company is not going to call off its fuel retailing business. Around 500 petrol stations run by the dealers will continue operations.
The latest move by the company is meant to restrain losses as international crude oil prices continue to rise. “The recurring losses compelled us to close our outlets,” the spokesperson said.
According to the company, state firms can retail fuel at lower prices as the government compensates them with subsidies and cheaper crude oil.
Indiaretailing had earlier reported several fuel retailers condemning the government’s decision to allow a minimum hike in the retail prices of fuel, as compared to the rising international crude oil prices.