Inside India’s Oil Import Cartel: How 5 Firms Control 90% of the Market — And Why That Should Worry You

Ever wondered why petrol, diesel, and edible oils feel like they’re always expensive — no matter what the global prices are doing?

It’s not just taxes. It’s not just international prices.

It’s something deeper, more hidden — something that quietly controls 90% of India’s oil import supply.

Yes, we talk about the #landmafia and the #budgetmafia. But there’s a more silent, powerful group: The Oil Import Cartel.

And it’s not conspiracy talk — it’s basic economics.

How 5 Companies Built a Wall Around India's Oil Imports

Let’s break it down. Out of hundreds of players in India’s vast fuel and edible oil market, just five companies control the lion’s share — 90% of the import and supply chain.

Sounds unreal? But here’s how they do it:

1. Barriers to entry — deliberately high

2. Government compliance rules — tilted toward large corporates

3. Minimum capital requirement — beyond the reach of regular players

4. 🚫 The License Trap: Why New Players Can’t Enter

   To import oil in India — whether it’s edible oil or crude petroleum — you need a special license. But to even apply for that license, your company must have a minimum net worth of ₹100 crore.

   Yes, ₹100 crore.

   Most startups or mid-sized traders can’t dream of crossing that threshold. So the big boys keep playing, and new players just watch.

5. 💸 ₹240 Crore Just to Bring a Ship In? Yup.

   Even if you somehow get the license, you still need deep pockets.

   To import a single cargo vessel, you need to order a minimum of 50,000 tons — costing around ₹240 crore in working capital.

   This eliminates almost every small or mid-size business from ever participating in India’s oil supply game.

   And guess who benefits? The same five companies. It’s not competition. It’s consolidation.

   🏦 Government Gatekeeping: Taxes, Compliance & Control

   So why is this allowed? Why doesn’t the market allow your local Kirana store to sell diesel or cooking oil at better prices?

   Because oil — both edible and fuel — is one of the most heavily taxed commodities in India. The government makes big money off fuel excise and VAT.

   Opening up the market to thousands of smaller sellers would reduce tax revenue and increase compliance headaches. So they just don’t.

6. 😶 Why Nobody Talks About It

   The worst part? This has become so normalized that nobody even questions it anymore.

   We’ve accepted that only big oil companies can sell or import. We’ve accepted the middlemen. We’ve accepted the pricing. We’ve accepted the gatekeeping.

   But what if we didn’t?

   💡 Want to Enter the Oil Game? Here's How You Can

   If you’re a trader, investor, or entrepreneur who’s ever wanted to get into the oil import, supply, or distribution business, there are a few ways around these barriers — legally and smartly.

   At Shunyatax Global, we can help you with:

   • Import license acquisition

   • Joint ventures with existing licensed firms

   • Setting up oil-based trading verticals

   • Regulatory compliance and capital advisory

   📞 Just book a session and let’s discuss how to open the gates that are meant to keep small players out.

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