The news source reported that Reliance has already suspended supplying products to all the 900 outlets. However, around 500 dealer-owned petrol stations may continue operations, according to a company source.
Reuters noted that the Indian government provides subsidies to public-sector fuel companies such as IndianOil and Hindustan Petroleum to shield them from the price disparity that arises on account of increasing crude prices and government-dictated market prices.
Fuel prices at Reliance outlets are 15% higher compared to state-run outlets, according to a company spokesman. This lack of level playing field has relegated the company to being a marginal player in the market, reported Reuters.
The other two private players in the Indian fuel retail market, Shell and Essar, have reportedly stopped short of shutting down outlets but have petitioned the government seeking parity with their state-run competitors, according to the news source.
