Indian retail business is the fastest growing business in India. It accounts for over 13% of country’s G.D.P.and around 10% of the country’s employment. Indian petroleum retailsector is fastest growing sector with a contribution of over 13% in country’s G.D.P.
. Thepetroleum retailing industry in India faces significant challenges in the deregulatedenvironment coupled with intense competition, a downward pressure is exerted onmargins forcing players to adopt new and innovative strategies.India has deregulated the pricing mechanism for retail petroleum in 2002, enabling newplayers to enter into the market.The entry of new players like Reliance has increase the no.of petrol stations from existing15000 to more than 30000 in the past five years.This will also reduce the average throughput per station, and total fuel volumes perplayer. With a market determined pricing mechanism, prices will have to be lowered,thus reducing margins from fuel products. With limited growth in the number of vehicles, the retail fuel volumes will remain stagnant, thus offering little scope forfurther improving the overall revenues and margins.
Petroleum retailing is a retailing in which differentiation is possible both in service and product.
India has close to 13 million retail outlets-the highest in the world while theretail industry is close to Rs.9 lakh crore, growing at 20 percent but organized retail isonly 2.5 percent of the pie, through growing at a healty rate of 35 percent. thedownstream petroleum retailing can be termed as one of the largest segment of theIndian retail industry.The petro-retail sector can be termed as one of the most organized sector of the retailindustry. Now, it is not all about offering fuel only at the petrol stations. The new look petrol pumps, apart from dispensing fuels, now offer the best of retail chainsproviding a value added service to busy consumers. This trend is in circulation in theinternational markets and the big petrol station convenience stores earn more than30 to 40 per cent of their profits from the non-fuel activities. The range of valueadded services is all beneath one roof. The new-look petrol pumps are now the moreadvanced multi-purpose dispenser petrol-pumps. The petrol pumps arecomputerized, thus reducing waiting time which not only ensures accuracy, but alsosaves a lot of time for customers and avoids misconception and arguments.
But the history of petro retailing is not of same kind. In order to study the history of petro-retailing era can be classified into two era’s.● Pro APM( Administrative Pricing Mehanisem) era● Post APM era
Indian Petro-Retail Sector- Pro APM Era
The development of petrol-retail sector in India has witnessed three distinct phases:a) Period of dominance of multinational companiesb) Advent of public sector, its growth in co-existence with these transnational