Indianoil Petronas Private Ltd (IPPL) which is a joint venture (JV) 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 joint venture is currently engaged in the import, storage, and bottling of liquefied petroleum gas (LPG).
Announcing the company’s June quarter results, Vaidya said in a press conference that “We have cleared the IndianOil Petronas Private Limited diversification into natural gas, and transportation fuel retailing business.” 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 and Petronas have a 50:50 joint venture, IndianOil Petronas Pvt Ltd (IPPL) for import of LPG. It sells LPG to commercial customers who are not allowed to use subsidised cooking gas sold to households by state energy firms. This joint venture will "diversify into natural gas and transportation fuel retailing business," IOC Chairman said. IPPL will set up petrol pumps as well as get into the city gas distribution business, he said. He however said detailing of the business has not been done yet.