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Last Updated : Jul 22, 2020 09:08 PM IST | Source: Moneycontrol.com

Doorstep delivery of diesel may be the next big thing with oil companies roping in startups

The Ministry of Petroleum and Natural Gas started mulling over the idea of legalisation of home delivery of HSD in 2017, after which it introduced the Petroleum Explosives Safety Organisation (PESO) to draft guidelines in this regard

Oil marketing companies (OMCs) are inviting bids to onboard startups for the doorstep delivery of diesel via mobile petrol pumps. This could be the next big thing waiting to happen in the fuel retail segment in India. OMCs like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have sought expressions of interest from startups that want to deal in the doorstep delivery of high-speed diesel (HSD), Business Standard has reported.

Only startups, to be referred to as FuelEnts (fuel entrepreneurs), registered with the Department of Promotion of Industry and Internal Trade (DPIIT) will be considered by OMCs for this venture.

The move comes as good news for existing startups such as FuelBuddy, Pepfuels, MyPetrolPump, Humsafar, among others, that were already facilitating OMCs in fuel delivery. They will now be able to sell officially to customers with their names on the invoice.

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The Ministry of Petroleum and Natural Gas started mulling over the idea of legalisation of home delivery of HSD in 2017, after which it introduced the Petroleum Explosives Safety Organisation (PESO) to draft guidelines in this regard.

Such startups could very well have their Swiggy-Zomato or Uber-Ola moment in the fuel segment if the venture takes off.

India's diesel consumption stood at 6.3 million tonnes in June, 14.5 percent higher than that in May, but 15.4 percent lower than the demand witnessed in the same period last year. The consumption of the fuel in FY20 stood at around 82.6 million tonnes.
First Published on Jul 22, 2020 09:08 pm
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