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More than just fuel stations

In these days of brands, branded fuel too has come of age. Fuel stations have embarked on an image makeover and are as snazzy as any shopping mall.


TIME: 9 p.m. Place: a petrol pump in the city. A posh car drives in and boys in crisp uniform and cap snap to attention. A regular customer, the man in the driver's seat has his brand of fuel. As the tank is being filled, a young lady in the car walks over to the convenience store and shops for soft drinks, snacks and magazines. In the meantime, her husband pays a visit to the ATM...

Rewind to the Nineties when filling in fuel meant a minute's job at one of the dimly lit, grimy bunks invariably reeking of grease or lubes. And your favourite brand was ... petrol, of course!

Call it one of the brighter sides of globalisation. The deregulation in the oil sector and intense competition between oil companies seem to have ushered in a new consumer culture in the fuel market.

Fuel today is a brand and the identity of the brand that one loads in one's vehicle has suddenly become as important as the Van Heusen shirt one wears or the Mont Blanc pen clipped to one's pocket. With fuel outlets undergoing a major facelift to suit the image of the premium fuel they sell, petrol pumps have now become more than just a place to fill petrol.

As for consumers, with oil companies vying with each other to pamper them and make them loyal customers, things have never been better. Apart from offering them a `cool' ambience and better facilities in fuel outlets, promotional schemes such as Petro Card, IOC Xtra and Club HP have been launched to keep customers smiling.

"Till March last, consumers had no choice regarding the kind of fuel they put in their tank, except that it had to be either petrol or diesel. Today, apart from the many choices in fuel, a lot of attention is being given to providing consumers better services, incentives and gifts through loyalty programmes," says Hari, who manages an outlet at Kaudiar.

The brand war was kicked off by Bharat Petroleum Corporation Limited (BPCL) with the launch of its high performance fuel, `Speed', the country's first branded petrol. The Indian Oil Corporation (IOC) followed it up with their new generation fuel, `Xtra Mile' (diesel) and `Xtra Premium' (petrol). Hindustan Petroleum (HP) will soon launch its own brand, `Power', in the city. A year after `Speed' was launched here, BPCL has followed it up with a high octane variant, `Speed 93'.

The new `high performance' fuels, it is claimed, have certain multi-functional additives that remove harmful deposits from the engine and components. This results in improved mileage, reduced emission levels, smooth driving and low maintenance costs.

In case one is wondering if there indeed is a market for such premium fuels in the city, BP dealers say that about one-third of the fuel sold in their outlets belongs to the premium category. IOC officials claim that though it has only been three weeks since `Xtra Premium' was launched, that too at only one outlet, the average daily sale is around 3,000 litres.

At the swanky BPCL outlet in Kaudiar, which is claimed to be one of the largest motor spirit selling outlets in the State with a daily sale of petrol of around 10,000 litres, `Speed' and `Speed 93' account for about 4,000 litres, says Hari.

And this, despite the fact that the premium fuels are priced higher than ordinary fuel. While unleaded petrol costs Rs. 36.50 a litre, `Speed' is priced at Rs. 37.84 and `Speed 93' at Rs. 39.84. IOC's `Xtra Premium' costs Rs. 37.59 a litre.

"Consumers do not seem to mind paying a little extra for getting a better performance fuel. All first-time users of `Speed' have come back to us to become loyal customers," says G. Gopalakrishnan, a BPCL dealer.

It is not as though those who drive new generation cars or bikes are the only ones using the premium fuels. There are even autorickshaws that regularly use `Speed'. Hari remembers how, during a strike by truckers last year, many consumers were upset and angry that their brand of fuel was in short supply.

Says Rajiv, a bank official who drives a Santro and is a regular user of one of the branded fuels, "After six months of use, I find that the acceleration is really smooth and that there is no knocking of the engine. The mileage too has gone up. I think I'm getting my money's worth."

Arjun, a college student who rides a 125 cc bike, says that after using one of the premium fuels, he needed little persuasion to try out the hi-octane petrol that has been launched recently.

The snazzy look being sported by many fuel outlets in the city in recent times has been to a large extent responsible for altering consumer perceptions about an `unexciting' product like fuel. BPCL went about giving a facelift to its retail outlets with the `Pure for Sure' (PFS) campaign, launched in the city a year ago. The campaign hinged on the concept of creating brand loyalty among customers by giving them an assurance of purity and quality and by delivering quick, courteous and efficient service.

`IOC Xtra', IOC's campaign on similar lines, and HP's `Club HP' are expected to be launched in another two months here.

Only select retail fuel outlets are given this premium certification by the oil companies on the basis of rigorous quality control and facilities the outlets offer. These include quick care facilities for air-checking, and the availability of engine oil and coolant, water dispensers, toilets, convenience stores, ATMs and the like. In the metropolises, petrol pumps are gearing up to offer anything from multi-cuisine restaurants to pool tables.

Looks like it won't be long before your favourite recreation centre would be the fuel station in your neighbourhood.

C. MAYA

Photo: C. Ratheesh Kumar

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