OMCs revert back to unbranded fuel

By Katya Naidu and Sruthi Gotipatti, CNBC-TV18:

If you have been worried about the unavailablity of unbranded fuel, you may be in for a surprise. Oil marketing companies have had a change of heart.

About two months ago, marketing major Indian Oil planned to convert 1,026 fuels stations across the country into pumps that will only sell its branded diesel Xtra Mile. But before they could even execute the plan, the management decided on a change in strategy. Indian Oil is now planning to revert back to selling both branded and normal fuel at its stations.

HPCL had converted less than 3% of its entire outlets to sell only branded fuel. But it's now looking to increase the availability of unbranded fuel. BPCL is also planning to go slow on their branded fuel station plans.

The reason for this is there are not many takers for the costlier branded fuel.

This year has been a trying one for Oil marketing companies due to the rise in crude prices. This is why the companies had decided to offer only branded petrol which cost 3 rupees more and branded diesel which costs Rs 1.10 more.

OMCs had earlier decided to sell costlier branded fuel to non-automotive customers like hotels and malls for captive power generation. But now, OMCs are planning to roll back to unbranded fuel sales to these consumers as well.