The Hindu : Karnataka / Bangalore News : Shell to sell only two fuel variants

Online edition of India's National Newspaper
Monday, Dec 31, 2007
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Karnataka

Karnataka - Bangalore

Shell to sell only two fuel variants

Staff Reporter

‘This is a temporary measure’

Company says
It is aimed at seeking a level-playing field
Shell Super Rs. 54.25; Shell Extra Rs. 37.25

BANGALORE: Shell, private fuel retail station operator, is offering only Shell Super Unleaded petrol and Shell Diesel Extra at its fuel stations from Friday.

This temporary measure, according to Shell’s Corporate Affairs Head, Deepak Mukarji, is aimed at demanding a level-playing field for oil retailers in the country. While fuel sold at public sector oil marketing companies’ outlets were subsidised, that in Shell was not.

Healthy competition

Shell aims at being able to compete on a level playing field which promotes healthy competition. Mr. Mukarji said, “We are against subsidies. They should be towards deserving sections of people.” He said by selling fuel at artificially low prices, oil marketing companies’ reserves were being wiped out.

He said that by selling fuel at such a low price, Shell could not add any value proportion to its customers.

Minimising loss

By selling Shell Super and Shell Extra the company did not hope to gain any profit. “But we try to minimise our losses,” Mr. Mukarji said.

With the decision, nearly 16 Shell petrol stations in and around Bangalore will sell Shell Super at Rs. 54. 25 a litre and Shell Extra diesel at Rs. 37.25 a litre.

The company acquired a marketing licence from the Union Government in 2004 to set up a network of 2,000 fuel retail stations in the country.

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