Tamil Nadu Sees 611 New Oil Outlets by Oct 2025 Despite Urban Petrol Bunk Shutdowns
December 17, 2025
Tamil Nadu’s oil marketing companies and private firms are expanding fast. Over 8,160 retail outlets now serve customers, offering LPG, CNG, and e-vehicle charging. Public sector companies run 7,100 outlets—1,990 in cities, 1,409 in rural areas, and 3,859 along highways. Private firms have 903 outlets. From April 2024 to October 2025, 611 new outlets have opened. An industry source said, “As new highways are formed, more outlets are coming up along these roads that connect to growing towns and new industrial areas.” Recent PSU entrants include Mangalore Refinery and Petrochemicals Limited with six outlets in Tamil Nadu. Chennai Petroleum Corporation Ltd., part of the Indian Oil Group, is also entering the retail outlet business. However, existing petrol bunks are closing, especially in urban and peri-urban zones. Experts blame the real estate boom. One said, “It is a better proposition to sell off land than run an outlet. Bunks are turning into parking spaces, restaurants, and even houses in cities that are starved of retail spaces.” Rising costs and low commissions also hurt fuel retailers. Consumer activist T. Sadagopan noted, “Land costs have spiralled, making bunks unattractive when compared to real estate. I hear that commissions provided to bunk owners too are not much. With shortage in labour and high maintenance costs, bunks are struggling.” He urged the government to support bunk owners by leasing land and providing tax incentives. The industry is changing fast, balancing new opportunities with challenges.
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Tags:
Oil marketing companies
Retail Outlets
Petrol Bunks
Tamil nadu
Highways
Real estate
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