Essar Oil, India’s largest private fuel retailer, plans to increase its number of petrol pumps to 2,000 in the next few months from 1,450 currently, group chairman, Shashi Ruia said on Thursday.

The announcement came immediately after the Kirit Parikh committee’s suggestion to free petrol and diesel pricing. Private sector oil companies - Reliance Industries (RIL), Essar Oil and Shell India - could benefit the most if the recommendation is implemented.

Private oilcos have been unable to expand their retail operations because only state-run oil firms get compensated for under-recoveries. RIL had to shut its retail operations last year when global crude oil peaked at $147 a barrel. Essar and Shell India also closed some of their pumps, but when crude oil prices softened, they restarted operations.

Essar currently sells petrol and diesel produced from its 280,000 barrels-per day refinery at Vadinar in Jamnagar district of Gujarat through 1,293 petrol pumps.