CPCL Enters Direct Fuel Retail Market with ₹400 Crore Initial Investment.

Public sector refiner Chennai Petroleum Corporation Ltd. (CPCL) is set to re-enter the direct retail marketing of petrol and diesel, nearly 20 years after winding up its sole standalone outlet in Sriperumbudur in 2001. The company, having recently secured approval from the Ministry, has earmarked an initial investment of approximately ₹400 crore over the next two to three years for this strategic foray.

H Shankar, Managing Director of CPCL, stated that while the company aims for a pan-India presence, the expansion will be approached cautiously, contingent on market demand and prevailing conditions. "We are looking at this as an opportunity of diversification and risk mitigation. Otherwise, you remain as a standalone refiner and dependent on fuel prices to decide profitability," Shankar explained, underscoring the strategic shift.

Though specific details regarding the number of planned retail outlets were not disclosed at this early stage, Shankar indicated that "the first round of retail outlets should roll out by the time we celebrate diamond jubilee." This timing is significant, as 2025 marks CPCL's diamond jubilee year, suggesting an accelerated push to mark this milestone with a tangible presence in the retail market.

This move signifies a notable diversification for CPCL, aiming to build a more resilient business model less susceptible to the volatility of crude oil prices and refining margins. The re-entry into retail marketing is expected to allow CPCL greater control over its product distribution and direct engagement with consumers.