India’s Biggest Oil Retailers Are Focusing on Rural Revival

  • State-run companies aim to open more stations in countryside
  • Small towns, villages are emerging as centers for fuel demand
Villagers fill their tractor at a Hindustan Petroleum Corp. station in rural Uttar Pradesh. The agricultural sector is the second-biggest consumer of diesel after transportation.Photographer: Sanjit Das/Bloomberg
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If there’s one part of India’s economy that’s been relatively unscathed by the devastating impact of Covid-19 it’s the vast rural hinterlands. And the country’s biggest fuel retailers are sitting up and taking notice.

Stay-at-home orders first imposed from March last year had a disproportionate impact on India’s teeming cities, but in small towns and villages people mostly went about their business with fewer restrictions. A bumperBloomberg Terminal agricultural crop and a splurge in government spending to pull the economy out of a slump is also expected to put more money into the hands of rural farmers and laborers.