IOC to sell branded fuel abroad

After the success of branded fuels in the domestic market, Indian Oil Corporation (IOC) plans to introduce them through its outfits in Mauritius and Sri Lanka. IOC sells premium petrol under the brand name XtraPremium and diesel as XtraMile.

Speaking to Business Standard, IOC director (marketing) NG Kannan said the company was planning to sell XtraPremium through its overseas outlets over the next few months. IOC is already marketing low-end petroleum products in Mauritius and Sri Lanka and felt introduction of the premium fuel in these countries was the next logical step.

The company claims that XtraPremium has proven that it can reduce chamber deposits in auto engines because of its octane content. Octane rating is determined by the compression ratio of the engines.

Almost all Indian cars require 91 octane only, which is also the minimum octane level required under the BIS specification effective from April 1, 2005.

Increase in octane beyond 91 does not contribute to any improvement in vehicle performance emissions, fuel economy, power etc. in India. A large number of cars in the US and European markets run on V6, V8 and V10 engines.

Improvement in engine quality had helped in pushing for improvement in fuel quality, said Anand Narasimhan, executive vice-president, Saatchi & Saatchi's, the agency which handles BPCL's Speed account.

Narasimhan said fuel grades were much higher in the developed market compared to the Indian market.

"People are looking at getting more out of their automobiles in terms of performance and maintenance. As a result of this, petrol, lubricants and car care products markets are booming. Premium fuels deliver tangible performance results," he said adding that fuel as a commodity would increasingly get branded.

Value-added products have improved the company's image, he said. Josey Paul, chairman and national creative director, David, compared branded fuel with salt. Just as iodised and branded salts created a niche for themselves, branded petrol and diesel have also created a distinct position for themselves.

"Branded fuels have acted as turbo boosters for the companies and with the introduction of such fuels companies have become more noticeable and related to the consumers," said Paul.