India crosses 1 lakh petrol pumps, ranking behind only US and China globally: Report

The growing integration of gas dispensing and EV charging infrastructure is expected to improve revenues at fuel stations

• India's petrol pumps exceed 100,000, ranking third globally in fuel stations.
• Rural stations make up 29% of India's network, up from 22% a decade ago
• Almost 33% of pumps now provide CNG or EV charging with petrol and diesel.

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India's fuel retail footprint has expanded past 100,000 petrol pumps, almost doubling in the last ten years, as public sector oil marketing companies rapidly added outlets to cater to rising vehicle numbers and extend fuel availability into rural and remote regions, the Economic Times has reported.

With this expansion, India now operates the world's third-largest network of fuel stations, trailing only the United States and China, which each have roughly 110,000-120,000 pumps spread across much larger land areas, the Economic Times noted.

The aggressive rollout has largely eased fuel access challenges outside urban centres and sharpened competition, leading to better customer service, former Indian Oil Corporation chairman B Ashok told the Economic Times. He added that intensified competition among oil companies played a key role in improving service standards.

Rural fuel stations now make up 29% of India's total network, compared with 22% a decade ago, according to data cited by the Economic Times. Fuel outlets themselves have also evolved: instead of selling only petrol and diesel, nearly one-third of pumps now provide alternative energy options such as CNG and electric vehicle charging.

Despite a series of policy reforms, private players continue to hold less than a tenth of the fuel retail market, the Economic Times reported. Reliance Industries operates around 2,100 pumps, while Nayara Energy runs about 6,900. Industry executives told the Economic Times that continued government influence over retail fuel pricing has discouraged large-scale private investment, even as concerns grow over whether the pace of expansion is financially viable.

In April, Harish Mehta, who was then CEO of Reliance BP Mobility, remarked that India had more fuel stations than it could economically sustain, the Economic Times recalled. Speaking at a public forum, Mehta said many outlets were unproductive and compared India with Indonesia, which operates only about 9,000 fuel stations.

"There is a mad scramble for market share," Ashok told the Economic Times, explaining that companies fear losing ground to rivals if they slow down expansion. He added that new outlets help boost total sales volumes, partially offsetting declining throughput at older pumps due to heightened competition.

Fuel demand has risen sharply over the past decade, the Economic Times reported, with petrol consumption up 110% and diesel demand increasing 32%, pushing combined volumes nearly 50% higher. On average, diesel sales per outlet are about twice those of petrol.

However, Ashok told the Economic Times that demand growth has not kept pace with the surge in new outlets. Many pumps operate on volumes too low to be sustainable, but dealers are often unwilling to close them because of the social status associated with owning a petrol pump, particularly in smaller towns and rural areas. He also pointed out that shutting outlets involves a complex regulatory process.

The financial strain is more visible outside major cities, said Nitin Goyal, treasurer of the All India Petroleum Dealers Association, in comments to the Economic Times. He said government policy must strike a balance to ensure older pumps remain economically viable.

Industry executives told the Economic Times that the retail network is likely to stabilise, arguing that India already has sufficient fuel stations to meet demand for years ahead. In contrast, the US has seen a steady decline in the number of pumps as competition forced inefficient outlets to shut. While India's fuel prices remain largely uniform due to regulation, Goyal said some low-volume outlets may still exit over time.

The growing integration of gas dispensing and EV charging infrastructure is expected to improve revenues at fuel stations, executives told the Economic Times, as alternative-fuel vehicles gain acceptance. They said these additions would widen consumer choice while strengthening the long-term sustainability of India's fuel retail network.