Tesco Ireland is likely to set up a partnership with a specialist petrol operator for joint branded forecourts in the Republic, similar to Tesco's Esso tie-up in Britain.
A spokesman said it was looking at ways to develop its share of the Irish fuel market after planning permission went through for a pilot Tesco petrol station in the Irish Republic.
Tesco wants to build its first forecourts alongside its existing supermarkets, and the Irish Planning Appeals Board gave the go-ahead for a site in Killarney, Co Kerry. However, plans for another filling station in the Dublin suburb of Finglas were rejected on traffic grounds, and two others proposed for Dublin and Maynooth, in Co Kildare, have been referred to the Planning Appeals Board.
Objections to Tesco's plans for a filling station in Killarney, were lodged by the Society of the Irish Motor Industry. It said the development of petrol stations linked to a multiple would allow a chain like Tesco to subsidise petrol sales and endanger the livelihoods of existing operators.
According to the society, such cross-subsidisation has had a "very negative impact" on operators in Northern Ireland.
The Planning Board said it did not have the power to refuse permission "on the grounds that the proposed development would impinge on existing profit margins of other petrol stations in the area".

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