Improve profitability for oil PSUs: The said move will help oil PSUs to reach new market in rural areas thus will improve their sales and profit volumes. This has become imperative considering PSU oil companies are facing acute competition from the new private entrant (such as Essar, Reliance) in the retail sector.
Boost the rural economy: Online sale will also help in improving the rural economy by providing sufficient access to the energy resources.
Improvement in quality of service: The said move has also seen by many experts as improvement of service delivery standard in oil sector.
Other benefits: Online sale will help in providing additional and cleaner means of cooking thus improve the women health and save the environment.
Challenges
High cost: The oil PSU may have to suffer a large cost, as the entire process will require a new set of delivery tankers with nozzles and hosepipe fitted on them.
