How come there are not enough filling stations around the country?
Ans: Establishment of a filling station is a capital intensive venture. Since the OMCs want some level of return on their investments, there is always the tendency that they will establish filling stations at places where returns on their investments are assured i.e. the urban centers. The National Petroleum Authority (NPA) has recognized this anomaly and is putting in place mechanisms to address the shortcoming. The NPA is currently reviewing its guidelines for the renewal of licenses to OMCs to ensure that all OMCs are represented in all the districts. Additionally, the considerable increase in margins will serve as additional incentive to enable them set up outlets in the rural areas.
