Indianoil Petronas Private Ltd (IPPL) — a joint venture between state-owned Indian Oil Corporation (IOC) and Malaysian oil and gas company Petronas — is set to enter the fuel retailing and natural gas retailing business, IndianOil Chairman SM Vaidya said on Friday. The JV is currently engaged in the import, storage, and bottling of liquefied petroleum gas (LPG).
“We have cleared the IndianOil Petronas Private Limited diversification into natural gas, and transportation fuel retailing business,” Vaidya said in a press conference announcing the company’s June quarter results.
He said the new venture would not cannibalise the sales of IOC as India’s demand for energy was increasing and the growth of the IPPL would not be at the cost of Indian Oil’s market share.
IOC’s profit rose over three times to Rs 5,941 crore in the quarter ended June 30, on the back of higher refining margins and inventory gains. It witnessed a 74 per cent increase in revenues from operations compared to the year-ago period, which saw far more strict travel restrictions when the nation faced the first wave of Covid-19 infections.
The IOC Chairman said sales of petrol had surpassed pre-Covid levels, adding that a high preference for personal mobility had likely contributed to the recovery of petrol sales.