Reliance to shut petrol retail outlets-paper

MUMBAI, March 25 (Reuters) - Reliance Industries (RELI.BO: Quote, Profile, Research, Stock Buzz) will shut its company-owned petrol retail outlets after surging crude prices and its exclusion from government subsidies made them unviable, the Economic Times said on Tuesday, citing a source.

The paper said the company operates 1,400 outlets and owns most of them. Petrol stations run by dealers would continue to function, the paper quoted the source as saying.

"We are kept out of the ambit of the government-sponsored survival package. We have decided to close all our company-owned retail outlets," the paper quoted a source close the development as saying.

The government issues oil bonds only to state-run oil marketing firms such as Indian Oil Corp (IOC.BO: Quote, Profile, Research, Stock Buzz), Bharat Petroleum Corp (BPCL.BO: Quote, Profile, Research, Stock Buzz) and Hindustan Petroleum Corp (HPCL.BO: Quote, Profile, Research, Stock Buzz) as compensation for selling fuel at state-set prices that are below market rates.

Reliance, a private sector firm, is not entitled to receive the bonds. (Reporting by Narayanan Somasundaram,; Editing by John Mair)