City gas distribution rights to help oil marketing firms diversify, says Fitch
Updated : March 28, 2019 08:08 AM IST
IOC and Hindustan Petroleum Corp Ltd (HPCL) won city gas distribution rights in nine geographical areas each last month, and BPCL got rights to two areas. BPCL won the rights to 11 geographical areas in a previous auction in September 2018 as well.
Fitch said it expects the state-owned oil marketing companies' increased presence in city gas distribution to help them diversify from their oil refining and marketing business and reinforce their existing strong positions in the auto fuel market.
Other companies that won bids in the auction of rights for 50 geographical areas included state-owned gas processing and distribution company GAIL India Ltd, Maharashtra Natural Gas Ltd and Rajasthan State Gas Ltd, and private companies Adani Gas Ltd and Torrent Gas Pvt Ltd.