Reliance Seeking to Sell Fuel on Its Own in the U.S.
July 14 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, is seeking to sell fuel on its own in the U.S. from its Gujarat refinery, a company official said.
Mukesh Ambani-controlled Reliance is currently selling fuel through Hess Corp., the fifth-biggest U.S. oil company, said the official, who spoke on condition of anonymity. Mumbai-based Reliance has leased storage space from Hess, he said, without giving capacity details.
Reliance is selling fuels overseas because it is unable to compete with India's state-run refiners, which sell gasoline and diesel below cost. India's government subsidizes state refineries with oil bonds to partly offset their revenue losses, while non-state refiners including Reliance and Essar Oil Ltd. do not get any such benefit.
Reliance started a 580,000 barrels-a-day crude processing unit at Jamnagar in the western state of Gujarat in December. Along with the adjacent 660,000 barrels-a-day refinery, it is the largest refining complex in the world, according to Reliance.
Shares of Reliance climbed 47 percent this year, compared with a 44 percent rise in the benchmark Sensitive Index of the Bombay Stock Index. The stock today gained 3.6 percent, the most since June 26, to 1,814.05 rupees.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
July 14 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, is seeking to sell fuel on its own in the U.S. from its Gujarat refinery, a company official said.
Mukesh Ambani-controlled Reliance is currently selling fuel through Hess Corp., the fifth-biggest U.S. oil company, said the official, who spoke on condition of anonymity. Mumbai-based Reliance has leased storage space from Hess, he said, without giving capacity details.
Reliance is selling fuels overseas because it is unable to compete with India's state-run refiners, which sell gasoline and diesel below cost. India's government subsidizes state refineries with oil bonds to partly offset their revenue losses, while non-state refiners including Reliance and Essar Oil Ltd. do not get any such benefit.
Reliance started a 580,000 barrels-a-day crude processing unit at Jamnagar in the western state of Gujarat in December. Along with the adjacent 660,000 barrels-a-day refinery, it is the largest refining complex in the world, according to Reliance.
Shares of Reliance climbed 47 percent this year, compared with a 44 percent rise in the benchmark Sensitive Index of the Bombay Stock Index. The stock today gained 3.6 percent, the most since June 26, to 1,814.05 rupees.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
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