BS-VI in, branded fuel may not be out

Even though the National Capital Region (NCR) is gearing up for the formal launch of Bharat Stage-VI grade of fuel, branded fuel variants, including XtraPremium, 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 includes imported additives that improve performance, efficiency and the driving experience, 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 between branded and non-branded fuel has come down to around ~2 per litre,” a Mumbaibased analyst said.

While IndianOil markets XtraPremium, Hindustan Petroleum and Bharat Petroleum sell the Speed and Power brands, respectively. IOC holds a 49 per cent share in the branded fuel market, and around 46 percent 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 pickup, smoother drive, better mileage and lower emission,” another 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.