Reliance Industries (RIL) has for the first time indicated that it plans to reopen its petrol pumps but wants domestic sales from its export-oriented refinery and the upcoming SEZ refinery to be given deemed export status and exempted from extra duties.

“With the fall in international prices, Reliance may also reopen its outlets. It will be incongruous if Reliance imports diesel for its retail — while supplying to public sector (oil marketing) undertakings — because of the barrier of net foreign exchange and double duty,” RIL wrote to the petroleum ministry earlier this month.

RIL shut more than 1,400 petroleum outlets last March when crude oil prices spiralled but state-run oil marketing companies (OMCs) continued to hold retail prices on government’s directive. In a letter to the petroleum ministry, Reliance corporate affairs president K Muralidharan has sought “two regulatory prerequisites” to enable release of its refined products in domestic market with their application extended to “all entities with marketing rights”.

First, the value of domestic supplies of petrol and diesel from both its refineries be counted as foreign exchange earnings even though the actual earning would be in rupees. Second, it wants the basic customs duty of 1.25 per cent on products from EOU refinery and 2.5 per cent on products from SEZ refinery to be eliminated along with removal of additional excise duty of Rs 6 per litre on petrol and Rs 2 per litre transport cess on both products. “The regulatory changes should apply for all domestic supplies, whether through public sector (oil marketing) undertakings or private oil companies with marketing rights. This would enable the private oil companies also to source products from SEZ/EOU refineries, in preference to imports,” said the November 6 letter.