New Delhi: Jio bp State-run market dominance has been challenged fuel retailers By offering additive-laced diesel at a discount of Re 1 over regular diesel sold by the competition to attract long-distance freight and fleet operators, who form the largest consumer segment of the fuel.
But a muted market presence will be a limiting factor for the joint venture amid Reliance Industries Ltd. and UK major BP, are restricting the competition to highways and bulk supply segment.
A company statement on Monday claimed the fuel would result in annual savings of over Rs 1 lakh per truck due to 4.3% higher efficiency due to the “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 under different brands and for a higher cost 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 3.29 cheaper than 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 “ready 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 level 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 Ltd. and UK major BP, are restricting the competition to highways and bulk supply segment.
A company statement on Monday claimed the fuel would result in annual savings of over Rs 1 lakh per truck due to 4.3% higher efficiency due to the “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 under different brands and for a higher cost 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 3.29 cheaper than 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 “ready 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 level a year ago as state retailers recouped losses incurred during oil’s high run.