A Sizeable Refining Capacity Addition is Turning India into a Global Refining Hub, Oil and gas accounts for 41 per cent of India’s energy consumption and there is unlikely to be any significant scaling down of dependence on these fuels in the next five to ten years. The sustained economic growth in the country over the last five years has led to a subsequent growth in energy demand across industrial, transportation, commercial, and residential sectors. To meet this ever growing demand for oil, the petroleum industry is expanding its refining capacity to drive output and distribute petroleum products through proper channel. With margins under pressure, Indian retailers have begun to integrate with value-added products such as air fillings, smart Shoppe, petrol cards and invest in methods to improve the customers’ relationships. Problems faced by consumers at petroleum retail outlets are many some of them include the doubts in mind of the customers about right quantity, ,right quality, timely supply of petrol/ diesel for the customer by the dealer and daily variation of prices in petrol/diesel and varying prices on the same day in the same petroleum company across the different states. This study is mainly used to find out and analyze the SCM practices that exist in the Retail Petroleum distribution outlets situated in the study area of in and around Guntur and also to suggest measures for maintenance of SCM practices in the petroleum industry. This will definitely result in the growth of retail petroleum outlets along with customer satisfaction and customer retention.