InvestorQ : Why is Reliance seeking waiver of rent from the fuel retailers?
Anjana Aiyar made post

Why is Reliance seeking waiver of rent from the fuel retailers?

Answer
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Arya Nanda answered.
3 months ago


With the slump in oil prices, Reliance Industries is negotiating for a 10% waiver on rent that RIL pays to its fuel retailers. Currently, RIL operates over 1400 fuel retail outlets of which around 500 are company-owned and dealer-operated wherein RIL has rented land from owners. Since RIL has been incurring losses in its oil business, it has asked for a 10% waiver in the monthly rent for next 10 months. In the last quarter, RIL took a loss of Rs.4245 crore on account of inventory losses. RIL pays rents ranging from Rs.40,000 per month to Rs.170,000 per month. RIL plans to expand its 1400 outlets to 5500 outlets in the next five years.