India: Rising Branded Fuel Sales Proving Successfull

Promoting branded fuels had become necessary because the companies were selling the unbranded varieties at prices below costs. Branded petrol and diesel reported a growth rate of 83.8 per cent and 67.2 per cent, respectively, in the first quarter of this fiscal compared with the year-ago period, according to petroleum ministry data.

The share of branded petrol and diesel in total sales was around 24 per cent and 10.9 per cent, respectively. Analysts said sales rose because motorists were becoming aware of the advantages of using branded petrol and diesel, in terms of fuel efficiency.

Branded petrol costs Rs 3-4 a litre more than unbranded petrol, while branded diesel is priced Rs 1.25-2 per litre higher. “There is an excellent response from the users of premium fuel because of the advantages offered in terms of mileage and vehicle performance,” industry sources said.

The oil marketing companies had pushed for the sale of branded fuels because unbranded petrol and diesel were becoming unviable following the spike in the global price of crude oil, which at one time had touched $145 per barrel.

Indian Oil Corporation (IOC) chairman Sarthak Behuria had said the companies were forced to sell branded fuels at select petrol pumps because the government did not raise petrol and diesel prices in line with global trends.

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