Tamil Nadu   

Oil firms may also derive mileage from elections

By Our Staff Reporter

CHENNAI, JAN. 23. It is not only politicians who take a special interest in elections. The battle seems equally significant for oil marketing companies, especially after their diesel sale rose by 11 per cent in November last, when four States went to the polls.

The growth, over the corresponding period in 2002, is the only heartening feature for the companies, which are expected to end the current fiscal with a one per cent drop in diesel sale, T.L. Jain, executive director-retail, Indian Oil Corporation (IOC), told presspersons here today. The decline could be attributed to various factors, including use of diesel substitutes such as white kerosene and super light diesel oil, the Railways' emphasis on electrification and a strike by transporters in April. The oil industry was concerned and ``we are doing a study to pinpoint the reasons.''

The coming general elections might lead to more diesel use, Mr. Jain said, without elaborating on the likely increase in quantum. The retail sale of petrol, however, was expected to grow by around 10 per cent in 2003-04.

Apart from the declining diesel sale, the increase in the number of petrol pumps — between April 2002 and November 2003 about 2,600 new outlets were added — brought down the average per pump throughput to about 200 kilolitres a month. According to current estimates, it was expected to drop to ``a below viable level'' of around 150 kilolitres. The throughput of IOC pumps, however, ``is better than the industry average.'' Private companies foraying into retailing of automobile fuels would have to fight for their share of the market with the existing retail outlets on highways, as there was little space available in the cities for setting up petrol pumps. Moreover, petrol sale in the urban areas also reached saturation, Mr. Jain said.

Value addition

Therefore IOC, which has 704 petrol pumps in Tamil Nadu and Pondicherry, was planning to increase its earning from non-fuel activities at retail outlets. It was tying up with a host of retailers and banks for offering value-added facilities such as convenience stores and automated teller machines. ``In countries, where petrol pumps serve as a one-stop shop for various products, the revenue from non-fuel activities is over 40 per cent. But in India the concept is in a nascent stage.'' In Tamil Nadu, value-added facilities, including pharmacies, were available at 20 petrol pumps. Nine of the 91 `jubilee' outlets of the company in the country, which are located in a comparatively large area with more facilities such as dhabas and restrooms, were in the State.

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