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Oil
Companies operating in the cities are converting to branded fuels and
ending the supply and sale of normal fuels which are subject to
subsidies.
That's because oil marketing companies like
HPCL, BPCL and IOC are promoting their own fuel brands, and are phasing
out regular petrol & diesel.
IOC,
for instance, has already converted 26 of its 52 petrol pumps in Mumbai
to branded-fuel outlets. See PetrolWorld news story from
last week.
BPCL has also stopped selling normal fuel at 10 outlets in Mumbai, and 10 outlets in Delhi. And more are on the anvil.
Metros
like Chennai and Kolkata are also going to see similar conversions very
soon. Industry insiders say the three oil marketing companies have
agreed to gradually phase out unbranded petrol and diesel from as many
outlets as possible.
It's
a move that will help these companies make up some of the losses they
face from selling fuel at subsidised prices. After all, branded petrol,
on an average, costs three rupees more than the unbranded product,
while branded diesel costs one rupee, ten paise more.
It is understood by PetorlWorld that the Indian Government will allow oil
marketing companies to increase prices of branded fuel. This may provide
some respite for the oil marketing companies who are facing losses of
around Rs 550 crores per day.
PetorlWorld 170508
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