New Delhi, May 11

Notwithstanding the everyday oil-price shock, branded auto fuels are seeing a steady growth in demand. With consumers willing to pay more for premium petrol and diesel, public-sector Indian Oil Corporation Ltd (IOC) is going ahead full steam to promote its branded fuel.

There is a leaning towards branded fuel, Mr G.C. Daga, Director Marketing, IOC told Business Line. The move is also seen as an attempt to bring down the heavy under-recoveries that the company suffers from selling petroleum products at a subsidised rate.

“We will be spending Rs 800 crore towards our retail segment, which includes setting up new outlets, upgrading and automating existing ones. On branding and promotional activities, the company spends about Rs 35 crore annually for the two products,” he said.

IOC has notched up a market share of over 48 per cent for its branded petrol — XtraPremium — with 38 per cent of its 17,700 retail outlets offering it. In fact, the company has found 28.5 per cent of its existing customers shifting to the branded category.

In the case of its branded diesel — XtraMile — the company has posted 65 per cent growth, with a market share of 58 per cent and 17.3 per cent of regular customers opting for it. Branded diesel is being sold at 58 per cent of the retail outlets.

contd on page 2...