NEW DELHI: Jio-BP has challenged the market dominance of state-run fuel retailers by offering additive-laced diesel at a discount of Re 1 over regular diesel sold by competition, which caters to long-distance freight and fleet operators. seeking to attract Consumer segment of fuel.
But a muted market presence will be a limiting factor for the joint venture amid Reliance Industries Limited And UK major BP is restricting competition to the highways and bulk supply segments.
A company statement on Tuesday claimed the fuel would result in annual savings of over Rs 1 lakh per truck due to 4.3% higher efficiency due to “active” technology – a euphemism for additives. Although the company said that this discount is an introductory offer.
State-run retailers are selling additive-laced diesel at a higher cost and under different brands to differentiate it from regular diesel. IndianOil’sextramileDiesel costs Rs 92.91 per liter in Delhi and Rs 97.51 per liter in Mumbai, while normal diesel costs Rs 89.62 and Rs 92.28 respectively. At Rs 88.62, Jio-bp’s Super Diesel is cheaper by Rs 3.29 than rivals’ comparable products in Delhi and Rs 5.23 in Mumbai. Compared to regular diesel, the price of Jio-BP offered is about Re 1 less.
Harish, CEO of Geo-BP, said, “While every single customer is important, truckers have always held a special place for Geo-BP. But understand the important influence of fuel.” C Mehta Said.
The “high-performance” fuel is “set to elevate diesel standards for Indian consumers”, the company said, adding that adding additives will “restore and maintain” engine power by removing deposits on the engine’s surface. This improves performance and reduces the risk of unscheduled maintenance.
Jio-BP’s move comes amid improving retail margins on the back of lower oil prices and is bound to spur public demand for reduction in prices of petrol and diesel sold by state-run retailers. Pump prices have remained unchanged from last May, while oil prices have recovered to their highest levels a year ago as state retailers recouped losses incurred during oil’s high run.
But a muted market presence will be a limiting factor for the joint venture amid Reliance Industries Limited And UK major BP is restricting competition to the highways and bulk supply segments.
A company statement on Tuesday claimed the fuel would result in annual savings of over Rs 1 lakh per truck due to 4.3% higher efficiency due to “active” technology – a euphemism for additives. Although the company said that this discount is an introductory offer.
State-run retailers are selling additive-laced diesel at a higher cost and under different brands to differentiate it from regular diesel. IndianOil’sextramileDiesel costs Rs 92.91 per liter in Delhi and Rs 97.51 per liter in Mumbai, while normal diesel costs Rs 89.62 and Rs 92.28 respectively. At Rs 88.62, Jio-bp’s Super Diesel is cheaper by Rs 3.29 than rivals’ comparable products in Delhi and Rs 5.23 in Mumbai. Compared to regular diesel, the price of Jio-BP offered is about Re 1 less.
Harish, CEO of Geo-BP, said, “While every single customer is important, truckers have always held a special place for Geo-BP. But understand the important influence of fuel.” C Mehta Said.
The “high-performance” fuel is “set to elevate diesel standards for Indian consumers”, the company said, adding that adding additives will “restore and maintain” engine power by removing deposits on the engine’s surface. This improves performance and reduces the risk of unscheduled maintenance.
Jio-BP’s move comes amid improving retail margins on the back of lower oil prices and is bound to spur public demand for reduction in prices of petrol and diesel sold by state-run retailers. Pump prices have remained unchanged from last May, while oil prices have recovered to their highest levels a year ago as state retailers recouped losses incurred during oil’s high run.