Business Standard - Kolkata

BS VI in, branded fuel may not be out

Date: 07/03/2018 | Edition: Kolkata | Page: 2 | Source: Shine Jacob | Clip size (cm): W: 9 H: 17

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Extracted Text data: GREEN RIDE SHINEJACOB NewDelhi,6 March Even though the National Cap-ital Region (NCR) is gearing up for the formal launch of Bharat Stage-VI grade of fuel, branded fuel variants, including Xtra-Premium, Speed, Power and Turbojet, are unlikely to go off the market anytime soon. In fact, companies are actually expecting a rise in sales of branded fuel after the launch of BS-VI fuel. "We are going to aggressively market branded fuel. Such fuel incl-udes imported additives that improve performance, effi-ciency and the driving experi-ence, reduce emissions and lower maintenance costs," said an Indian Oil Corporation executive. The branded fuel will also be BS-VI compliant. Delhi on average consumes around 12,67,000 tonnes of diesel and 9,02,000 tonnes of petrol in an year. "Sales of branded fuel are not even 5 per cent of IOC's total sales and only 1-2 per cent of the total sales of the three oil marketing firms. This is despite the fact that the price difference bet-ween branded and non-brand-ed fuel has come down to around t2 per litre," aMumbai-based analyst said. While IndianOil markets XtraPremium, Hindustan Pet-roleum and Bharat Petroleum sell the Speed and Power bra-nds, respectively. IOC holds a 49 per cent share in the brand-ed fuel market, and around 46 per cent in Delhi alone. Branded fuel is available at 6,200 IOC outlets across the country. "Higher quality BS-VI fuel may not offer competition to branded fuel. BS-VI fuel will comply with more stringent emission norms, and BS-VI branded fuel will offer similar advantages of superior pick-up, smoother drive, better mil-eage and lower emission," ano-ther IOC executive said. BS VI fuel, which limits the amount of sulphur to 10 parts per million (ppm) from 50 ppm in BS-IV, will be launched in Delhi from April 1. a a a a