Oil major's share up marginally

Indian Oil Corporation (IOC) has managed to marginally better its market share by 0.5 per cent to 44 per cent in FY07. The country's largest marketer of petroleum products is way ahead of competition by 24 per cent. The company sold 49 million tonne of petroleum products in the domestic market last year, clocking a volume growth of 5.7 per cent over 2005-06. Imports went up from 1.5 million tonne to 2.5 million tonne in the period.

The company's market share for diesel retailing rose 1.4 per cent over the previous year to 37 per cent this year, while its share for petrol sales remained constant at 34 per cent. The volume growth for these products has been 12 and seven per cent to 19 million tonne and three million tonne, respectively, said G C Daga, director (marketing), IOC. This puts IOC 11 per cent ahead of the next competitor in case of diesel and 5 per cent in case of petrol.

The industry growth in petroleum sales was 6.9 per cent and 7.8 per cent for diesel during FY07. "This growth in market share has been helped by the eroding market share of private players," Daga said.

IOC's business of branded fuel - 'Extra Premium Petrol' and 'Extra Mile Diesel' - has also shown a considerable improvement with a healthy conversion rate from normal to branded fuel.

The volume sales of Extra Premium petrol increased by 35 per cent in 2006-07, capturing a market share of 40 per cent with an increased conversion rate of 23 per cent, as opposed to 13 per cent in the previous financial year. Extra Mile diesel captured a market share of 52 per cent in 2006-07, clocking a volume growth of 31 per cent and an increase in conversion rate from 11 per cent to 17 per cent.

The gross under realisation for IOC per day has been Rs 65 crore per day, on an average over the last one year. However, the net under realisation for that year has been Rs 4,000 crore, Daga added.