Petroleum Minister Ram Naik has lifted the ban on state-owned oil companies from setting up petrol pumps and LPG agencies but has stopped them from appointing their dealers until new guidelines are framed.A directive from Naik’s ministry on February 17 told the oil PSUs to continue the process of identifying the sites for petrol pumps and LPG agencies. ‘‘However, the final selection of dealers/distributors may be done only after finalisation of guidelines in this regard,’’ it adds.The marketing heads of oil PSUs have been asked to submit the guidelines to the ministry before they are implemented to ensure that the government’s policy on reservation for weaker sections, freedom fighters and widows is adhered to in the selection, sources said.Current guidelines of these firms do not provide for any reservation as the sector stands decontrolled since last April. Their argument is that similar reservations have not been fixed on the private firms which are preparing to enter the marketing sector in a big way.The only condition on private operators is that they should set up 11 per cent of their outlets in remote and low-service areas. Ironically, another letter from the ministry to the four PSUs states that since the sector was decontrolled, the companies were free to set up petrol pumps and agencies where they wanted. ‘‘.With the dismantling of the administered pricing mechanism and commercial freedom provided to the oil companies for their marketing activities, no approval is required to be given by the ministry in this regard,’’ it says. Earlier, Naik stopped the PSUs — IOC, BPCL, HPCL and IBP — from expanding their retail network but the firms objected to the move saying that it would tantamount to giving an unhindered access to private firms in picking out the best sites.
