NEW DELHI: jio-bp has challenged the market dominance of state-owned companies fuel dealer by offering additive-enhanced diesel at a Re 1 discount on regular diesel sold by competitors to attract long-distance hauliers and fleet operators who make up the fuel’s largest consumer segment.
However, a muted market presence will be a limiting factor for the joint venture between Reliance Industries Ltd and British major BP, limiting competition to the highway and mass-utility segment.
A company statement on Monday said the fuel will result in an annual saving of over 1 lakh rupees per truck due to the ‘ACTIVE’ technology – a euphemism for additives – as efficiency is boosted by 4.3% . However, the company said the discount is an introductory offer.
State retailers sell diesel with additives at higher prices and under a different brand to distinguish it from regular diesel. IndianOils’XtraMileDiesel costs 92.91 rupees per liter in Delhi and 97.51 rupees in Mumbai versus 89.62 rupees and 92.28 rupees for regular diesel respectively. For 88.62 rupees, jio-bp’s super diesel is 3.29 rupees cheaper than similar products from competitors in Delhi and 5.23 rupees in Mumbai. Compared to regular diesel, Jio-bp’s offering costs about Re 1 less.
“While every single customer is important, truckers have always had a special place at Jio-bp. As they account for more than half of truckers’ operating costs, we understand the critical impact fuel has on their overall business performance,” says Harish, CEO of Jio-bp C Mehta.
The “high performance” fuel aims to “raise diesel standards for Indian consumers,” the company said, adding that the additives would “restore and maintain” engine performance by removing engine surface deposits. This improves performance and reduces the risk of unscheduled maintenance.
Jio-bp’s move comes amid improved retail margins due to lower oil prices and will inevitably lead to public demand for a cut in the price of gasoline and diesel sold by state-owned retailers. Pump prices have been flat since last May, while oil prices are off their peak of a year ago as state-owned retailers recoup losses suffered during the oil boom.
However, a muted market presence will be a limiting factor for the joint venture between Reliance Industries Ltd and British major BP, limiting competition to the highway and mass-utility segment.
A company statement on Monday said the fuel will result in an annual saving of over 1 lakh rupees per truck due to the ‘ACTIVE’ technology – a euphemism for additives – as efficiency is boosted by 4.3% . However, the company said the discount is an introductory offer.
State retailers sell diesel with additives at higher prices and under a different brand to distinguish it from regular diesel. IndianOils’XtraMileDiesel costs 92.91 rupees per liter in Delhi and 97.51 rupees in Mumbai versus 89.62 rupees and 92.28 rupees for regular diesel respectively. For 88.62 rupees, jio-bp’s super diesel is 3.29 rupees cheaper than similar products from competitors in Delhi and 5.23 rupees in Mumbai. Compared to regular diesel, Jio-bp’s offering costs about Re 1 less.
“While every single customer is important, truckers have always had a special place at Jio-bp. As they account for more than half of truckers’ operating costs, we understand the critical impact fuel has on their overall business performance,” says Harish, CEO of Jio-bp C Mehta.
The “high performance” fuel aims to “raise diesel standards for Indian consumers,” the company said, adding that the additives would “restore and maintain” engine performance by removing engine surface deposits. This improves performance and reduces the risk of unscheduled maintenance.
Jio-bp’s move comes amid improved retail margins due to lower oil prices and will inevitably lead to public demand for a cut in the price of gasoline and diesel sold by state-owned retailers. Pump prices have been flat since last May, while oil prices are off their peak of a year ago as state-owned retailers recoup losses suffered during the oil boom.
