Chennai Petroleum Corporation (CPCL), a subsidiary of Indian Oil Corporation, has received approval from the Government of India to enter the retail marketing segment for petrol (Motor Spirit) and diesel (High Speed Diesel).

The Ministry of Petroleum and Natural Gas conveyed the permission, marking a strategic shift for CPCL from being a standalone refiner to a fuel retailer. This approval places CPCL on track to emulate Mangalore Refinery and Petrochemicals (MRPL), which is targeting 1,000 outlets and one million tonne of sales by 2030. 

Headquartered in Chennai, CPCL operates a 10.5 million tonne refinery in Manali and previously operated a one million tonne facility in Nagapattinam, which was dismantled for a new 9 million tonne refinery and petrochemical project - a joint venture with Indian Oil. The revised cost of this Cauvery Basin project is Rs 33,023 crore, with Indian Oil holding 75 percent and CPCL 25 percent. 

 Although currently CPCL’s products are sold via IOCL, the new licence may open a new revenue stream, contingent on stock access post IOCL offtake.