Premium Fuel:

What is premium Fuel?

Premium fuel is nothing but the branded fuel that includes petrol and diesel. How far it is different from that of regular fuels?If the fuel contains some additives that are found to be lack in case of regular fuels.Now the question araises why these additives are being added,whats the nedd of inclusion of these imported additives?All these questions give raise to the only one answer to claim fuel efficiency whilst increasing the longevity of the engine.

PREMIUM FUEL PROS:

Usually,the persons who owns the luxury and expensive car would make use of this fuel.So, let’s see how far the usage of premium fuel is fruitful to its users.Hereby,we jot down certain points on the advantages the premium fuel tends to offer.
  • Low maintenance cost
  • Reduced pollution levels
  • Enhanced Vehicle Performance
  • Smoother Ride
  • Efficient Fuel Economy
  • Better and Quick Pick-Up
  • Engine Longevity
  • Smaller Carbon Footprints

PREMIUM FUEL’s DEBUT:

Lets probe into the history of branded fuel into our country.Start from the year 2002, our country gets flooded with new-generation cars,where the branded fuel is the need of the hour.At the same time,the petroleum sector also had started investing in the marketing sector.Moreover,the public sector firms decided to offer variants rather than the regular fuels. The difference between the regular and branded fuels in terms of cost factor,was Rs1.50 a litre for petrol,while a 25-75 paise a litre for diesel during that period of time. This attracts the customers towards the branded fuel,in a great number.Thus the network expansion and demand in the sales for premium fuel had created favourable conditions for the premium fuels to reach the pinnacle of success.

Oil Marketing Companies:

There are many pioneers available in the production and supply of premium fuel in our country. India’s largest Oil Marketing companies are listed below
  • IndianOilCorporation Ltd(IOCL)
  • Hindustan Petroleum Corporation Ltd(HPCL)
  • Bharat Petroleum Corporation Ltd(BPCL)
  • Shell
  • Essar
The premium fuels produced by these companies are similar to the fuels launched by the abroad and spiked with special additives thus proves to be the fuel produced from the premium brand thus living up to its name.There are certain popular premium fuels supplied by these companies which are being listed below.
Oil Marketing Companies Fuel Kind
Hindustan-Petroleum Power Petrol
Hindustan-Petroleum Turbojet Diesel
Bharat-Petroleum Ltd Speed Petrol
Bharat Petroleum Ltd Speed 97 Petrol
Bharat Petroleum Ltd Hi-Speed Diesel
Indian Oil Corporation Extra Premium Petrol
Indian Oil Corporation Extra Mile Diesel
Shell Super Petrol
Essar Punch Petrol

Fall In demand for Premium Fuel :

Effect of Excise Duty:

During the mid-2002,the government withdraw its subsidiary support from the premium fuels,that gets reflected in the greater excise duty that is being imposed on these fuels.

Whereas, the excise duty on the unbranded fuels gets cut down by Rs5.50 to Rs9.28 a litre.The situation became worse,when the premium petrol and diesel was sold at the cost price.It had an adverse effect over the Oil Marketing Companies, who enjoyed a higher margin on the premium products.This made the drivers of the pick-up trucks to switch to the regular fuels,those persons tend to use both kind for enhanced engine performance.It even made the petrol pump owners to convert the tanks used for storing premium fuel to those of unbranded ones.Further,it left the luxury and premium car owners in a dilemma whether to continue branded fuels or not.

Reviving its demand:

During the span of period from 2007 and 2008,the difference between the price rate of premium fuel and regular fuel/litre costs only 60 paise.This created a platform for premium fuels for giving its sole contribution in the hike in sales report that bound to 20-30% increase during 2007-2008.

Recently the government imposes excise duty of Rs 15.50 on a litre of branded petrol,while the regular fuel exerts an excise duty of Rs9.20.When it comes with diesel,the excise duty that is being imposed on branded diesel is Rs9.20 per litre against Rs 3.46 a litre for unbranded diesel.Hence the impact of all such excise duties on premium fuels lead to the hike in price of premium fuels.

The branded petrol costs Rs 83.08 a litre whereas ,the unbranded petrol costs at Rs73.60.In case of diesel,branded diesel costs Rs 64.95 a litre against Rs57.84 a litre.However,the difference between the costs of branded and unbranded fuels is so small.thus dont have any serious consequences neither on the customer nor the oil marketing companies.Thus a hope prevails that thre will be a pick-up in the sales of the branded fuels.

With the aid of Vicky.in, you can able to know the price details of premium fuels that are supplied by the India’s largest Oil Marketing Companies at a single click ,regardless of the place where you are.There is a provision on accurate price details in certain cities like Chennai,Kolkatta,Mumbai and Delhi which are considered as the hot spots of India.Also,we offers you with the detail on what are all the petrol bunks that offers premium fuels in your city.