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Premium fuel sales rev up in small towns

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Deepa Krishnan Mumbai
Last Updated : Jan 28 2013 | 5:12 PM IST
The premium motor spirit segment is seeing a healthy growth in rural and semi-rural consumption. Bharat Petroleum (BPCL) has witnessed an overall growth in sales in the smaller towns and centres, by 30 per cent in the five-month period from April to August, 2005, followed closely by Hindustan Petroleum (HPCL), which has a conversion rate of 25 per cent.
 
The sales of BPCL's "Speed" in the highways and small towns across the country stood at 6,500 kilolitre per month for August 2005, compared with 5,000 kilolitre per month in April 2005.
 
HPCL's "Power" accounts for an overall 12 per cent of it's petrol sales, while "Turbojet" accounts for 8 per cent of it's overall sales, both by growing over 1 per cent a month in the last five months.
 
According to S Krishnamurthi, executive director, retail division, BPCL, C segment centres like Kolhapur, Meerut, Sholapur, Raipur, Tatanagar and Bhubaneshwar, are witnessing an overall rise in disposable income, which is also fuelling an aspirational value among the consumers in these centres.
 
"We have witnessed a very healthy growth in the C and D segments (including the highway townships), and the offtake of BPCL's premium branded fuel, Speed and Speed 97 has outpaced their growth in the A and B centres, which is seeing a healthy growth rate of 25-30 per cent," he said.
 
SP Chaudhry, executive director, retail, HPCL pointed out that the overall growth in branded fuel use is steadily catching up, with about an 80:20 spread on urban to rural consumption of "Power", but almost a 50:50 spread on its diesel brand, "TurboJet".
 
Further, he said that with the higher sales of fuel-efficient 4-stroke bikes in the smaller towns, the offtake of high performance branded fuel has increased.
 
In the April-August 2005 period for BPCL, premium gasoline accounted for 12.5 per cent of the sales in the C centres, and 25.7 per cent in the D segment, amounting to a total of 37 per cent of sales.
 
Similarly, premium diesel accounted for 58.5 per cent of sales, with 11.5 per cent going to C segment towns, and 47 per cent of sales from D segment towns.
 
In the last year, BPCL's retail fuel sales have witnessed an overall growth of 0.41 per cent, at 12.16 MMT during 2004-2005, over 12.11 MMT in 2003-2004. HPCL has witnessed a 4.8 per cent growth in both petrol and diesel sales each, increasing its marketshares by 0.17 per cent and 0.19 per cent. ON THE RISE

  • C segment centres like Kolhapur, Meerut, Sholapur, Raipur, Tatanagar and Bhubaneshwar, are witnessing an overall rise in disposable income, which is also fuelling an aspirational value among the consumers in these centres

  • With the higher sales of fuel-efficient 4-stroke bikes in the smaller towns, the offtake of high performance branded fuel has increased.
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    First Published: Oct 03 2005 | 12:00 AM IST

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