The study on “Public Enterprises, Government Policy and Impact on Competition: Indian Petroleum Industry” was commissioned to Indicus Analytics Pvt Ltd. with an overall objective to examine the nature and state of competition in Petroleum Refining. The study indicates that domestic market is close to a monopoly. The study suggests that the most expeditious way of introducing competition is freeing imports. There cannot be competition in exploration and production if refining and distribution are concentrated; and there cannot be competition in refining unless crude is freely importable. Hence the first condition for a more competitive market is absence of restrictions on foreign trade.