NEW DELHI (Reuters) - Global oil majors including Saudi Aramco and Total plan to tap the retail fuel market in India, its oil minister said on Friday, reflecting the expanding role of the world's fastest-growing large economy on the global crude landscape.
India's fuel markets could be a lucrative prize for the world's oil majors as they seek outlets for their gasoline and diesel. India posted the fastest oil demand growth in the world in the first quarter of 2016 and is replacing China as the driver of growth globally, the International Energy Agency said in its latest report.
"Saudi Aramco is eager to enter in Indian market, we are finding ways to help them," Oil Minister Dharmendra Pradhan said in Hindi in a live telecast on a government website.
India, the world's fourth-biggest oil consumer, recently offered Saudi Aramco a stake in refineries and petrochemical projects.
Saudi Aramco wants to expand globally and is looking at potential joint ventures in several countries, including Indonesia, India, the United States, Vietnam and China, chief executive Amin Nasser told Reuters in an interview in May.
Fuel marketing in India has turned profitable after the government ended decades-old control over the retail prices of gasoline and diesel.
Pradhan said local private oil refiners Reliance Industries and Essar Oil have started opening their mothballed fuel stations and are adding new ones to expand business.
French major Total and European major Royal Dutch Shell that have a limited presence in India are also keen to strengthen their presence in the fuel retailing business, Pradhan said.
"Shell officials recently met me and informed about their plan to expand the retail network in a big way in southern India," he said.
He said his ministry has agreed to grant a licence to BP to market jet fuel in India. "There is a possibility they (BP) may expand into the Indian retail sector," he said in Hindi.
Essar Oil is still working to complete a deal to a sell a 49 percent stake in its 400,000 barrel per day Vadinar refinery in western Gujarat state to Russian giant Rosneft.
"Rosneft, rich with oil and gas wants to join Indian markets," Pradhan said.
By Nidhi Verma
(Reporting by Nidhi Verma; Editing by Christian Schmollinger)
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Tyre market in Bangladesh is forecasted to grow at over 9% until 2020 on the back of growth in automobile sales, advancements in public infrastructure, and development-seeking government policies.
The government has emphasized on the road infrastructure of the country, which has been instrumental in driving vehicle sales in the country.
The tyre market reached Tk 4,750 crore last year, up from about Tk 4,000 crore in 2017, according to market insiders.
The commercial vehicle tyre segment dominates this industry with around 80% of the market share. At least 1.5 lakh pieces of tyres in the segment were sold in 2018.
In the commercial vehicle tyre segment, the MRF's market share is 30%. Apollo controls 5% of the segment, Birla 10%, CEAT 3%, and Hankook 1%. The rest 51% is controlled by non-branded Chinese tyres.
However, Bangladesh mostly lacks in tyre manufacturing setups, which leads to tyre imports from other countries as the only feasible option to meet the demand. The company largely imports tyre from China, India, Indonesia, Thailand and Japan.
Automobile and tyre sales in Bangladesh are expected to grow with the rising in purchasing power of people as well as growing investments and joint ventures of foreign market players. The country might become the exporting destination for global tyre manufacturers.
Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
This reflects an opportunity for local companies to set up an indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture a significant market.
It can be said that, the rise in automobile sales, improvement in public infrastructure, and growth in purchasing power to drive the tyre market over the next five years.
Headline crude prices for the week beginning 14 January 2019 – Brent: US$61/b; WTI: US$51/b
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