Jio Will Now Disrupt Oil Retail Business In India; 5500 Jio-BP Branded Petrol Pumps Coming Up
Reliance Industries, which is India’s biggest corporate behemoth having interests in multiple businesses, will now launch petrol and diesel retail outlets.
Interestingly, the oil retail business will be branded under Jio, and this will be collaborated with BP (The British Petroleum Company plc).
New petrol pumps will be called Jio-BP Pumps.
This is a major development in the oil retail business in India, which is right now dominated by Govt oil retailers and marketers.
Can Jio disrupt oil retail business in India now?
Jio-BP Join Forces For Oil Retail Business
Under the brand name Reliance, there are 1400 fuel pumps in India (and 30 pumps at Petrol Pumps) as of now. This will be now increased to 5500 fuel pumps, under the brand name Jio-BP Pumps.
Reliance and BP have joined forces, for this massive collaboration to make a dent in the oil retail business of India.
Both Reliance and BP, in a joint statement said, “BP and RIL signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture. This follows the initial heads of agreement signed in August this year,”
This new partnership will be effective from the first half of 2020, and after that, all the 1400 fuel pumps and 30 aviation fuel pumps at airports will come under Jio-BP branded fuel pumps.
The History Behind Jio-BP Partnership
The partnership between Reliance and BP started in 2011, when BP bought 30% stake in Reliance by paying $7.2 billion. Under this agreement, BP took control of 21 oil and gas exploration and production blocks of Reliance.
Then a major breakthrough was achieved in 2016, when BP received the license to market jet fuel, and the same year in October, BP got Govt nod to set up 3500 fuel pumps across India.
At the same time, Reliance has license to set up 5000 fuel pumps in India, and currently holds 2-3% market share in India.
Now, this alliance of Reliance and BP is expected to kick in from 2020 (first half), and gradually, both the companies aim to make their market share stronger, and more profitable.