RIL to bail out Reliance Petrol Retailers

Reliance Industry finally has chalked out a bail out package for its petrol retailers. Retailers now have the option of suspending operations by getting a 12.5% PA Return Over Investment on their deposit and continue to sell petrol and diesel at Reliance rates which are higher than HPCL and BPCL prices.

OR They could opt to continue selling the products and RIL will pay the difference between cost of petrol sold by government and Reliance. It will be interestign to see hwo these dealers will price in the latter scenario.

RIL, which had 14% of India’s diesel sales at the peak in May this year, had seen its share fall to a meagre 1.5% by the end of July.