Jio-bp eyeing price war at diesel pumps? Superior-grade fuel launched
Jio-bp, the fuel retailing joint venture of Reliance Industries Ltd and UK's bp Plc, on Tuesday launched an additive-laced superior grade diesel that the company said gives improved mileage, leading to a saving of up to ₹1.1 lakh per truck annually.
The superior grade diesel is priced at rates lower than normal or additive-free diesel sold by public sector (PSU) competition. "Jio-bp today announced the launch of its diesel with ACTIVE technology, set to elevate diesel standards for Indian consumers.
"The newly launched additivised diesel, available across the company's network, will yield annual savings of up to ₹1.1 lakh per vehicle to truckers owing to (up to) 4.3 per cent improved fuel economy," it said in a statement.
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The new diesel is being sold at the Jio-bp outlet in Navi Mumbai for ₹91.30 per litre, while the normal diesel at public sector petrol pumps in the area cost ₹92.28 a litre. The about Re 1 a litre difference is across Jio-bp outlets.
The superior grade diesel is priced at market rates, however, as an introductory offer for the next couple of months. This new high-performance diesel offering will be available at all Jio-bp outlets and "will be offered at regular prices with no additional cost for the first time ever in the Indian market," it said.
Diesel with ACTIVE technology helps reduce the risk of unscheduled maintenance caused by dirt build-up and removes existing dirt from critical engine parts and protects against its build-up with ongoing use. It is designed to work across a range of commercial vehicles, and with ongoing use, it offers a variety of benefits to drivers and fleet owners. It helps restore and maintain the power of the engine with ongoing use while also reducing the risk of unscheduled vehicle maintenance, it added.
Reliance BP Mobility Ltd (RBML) operates under the name 'Jio-bp'. Private fuel retailers Reliance BP Mobility Ltd (RBML), Rosneft-backed Nayara Energy and Shell sold petrol and diesel at huge losses as they were unable to match the below-cost frozen rates of dominant public sector retailers.
But a fall in international oil prices over the last two months has helped bring the public sector pump-matching retail rates at par with the cost. Nayara, the largest private fuel retailer that owns over 7 per cent of India's 86,855 petrol pumps, started pricing petrol and diesel at market rates sometime in March and RBML's 1,555 petrol pumps are selling diesel at par from this month.
And now, Jio-bp has introduced superior-grade diesel at rates lower than even the normal diesel sold by state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (BPCL).
Jio-bp -- the brand under which RBML retails fuel -- isn't selling regular diesel but high-performance diesel designed for Indian vehicles and roads to give better fuel economy. The diesel is laced with specially developed additives for Indian roads and driving conditions to produce high performance. Jio-bp was selling premium diesel at rates that are equivalent to ordinary diesel at PSU pumps.
The company said the new grade diesel helps restore and maintain the power of the engine with ongoing use while also reducing the risk of unscheduled vehicle maintenance.
Jio-bp CEO Harish C Mehta said: "While every single customer is important, truckers have always held a special place for Jio-bp. Accounting for over half of the truckers' operating costs, we understand the critical impact of fuel on their overall business performance.
"To ease their concerns around fuel performance and engine maintenance, Jio-bp has worked over multiple years with the best technologists to develop customised additives from scratch. This additive-laced high-performance diesel is designed specifically for Indian vehicles, on Indian roads, and in Indian driving conditions."