Chennai, Nov 25 (TIWN / IANS) Three public sector oil marketing companies have decided to expand their retail network by adding about 5,125 new outlets in Tamil Nadu and Puducherry over the next two years, a senior official of the Indian Oil Corporation (IOC) said on Sunday.

The three companies are IOC, Hindustan Petroleum Corporation Ltd., and Bharat Petroleum Corporation Ltd.

"The three companies plan to add about 5,125 new dealerships as the demand for oil is growing. The demand for petrol is growing at eight per cent per annum and diesel at four per cent," R. Sitharthan, Executive Director, IOC and also the state-level Coordinator for oil industry told reporters here.

He said the new fuel outlets will come up in emerging markets like upcoming highways, agricultural pockets and industrial hubs.

Sitharthan said the process of application for dealerships and its allotment has been simplified.

"For the first time, computerised draw of lots, bid opening would be held under the aegis of an independent agency to bring in more transparency."