Jio-bp's flagship mobility station at Navde in Navi Mumbai
Jio-bp on Tuesday announced that it will offer high performance fuel at base price for the first time in India. Reliance BP Mobility Ltd (RBML), a joint venture between Reliance Industries Limited and UK's bp, launched its diesel with ACTIVE technology. The additivised diesel will be available across 1,555 petrol pumps. The company claims its network will yield annual savings of up to Rs1.1 lakh per vehicle to truckers due to 4.3 percent improved fuel economy. The new diesel will be offered at regular prices with no additional cost for the first time in the Indian market.
During the announcement, the company spokesperson said for the first two months, Reliance will be selling the new diesel at Rs1 rupee per litre less than what the other fuel retailers are charging.
The ACTIVE technology behind this diesel will help reduce the risk of unscheduled maintenance caused by dirt build up. Besides, it removes existing dirt from critical engine parts and protects against its build up with ongoing use. It is designed to work across a range of commercial vehicles, and with ongoing use, it offers a variety of benefits to drivers and fleet owners. It helps restore and maintain the power of the engine with ongoing use while also reducing the risk of unscheduled vehicle maintenance.
Jio-bp CEO Harish C Mehta says, “While every single customer is important, truckers have always held a special place for Jio-bp. Accounting for over half of truckers’ operating costs, we understand the critical impact of fuel on their overall business performance. To ease their concerns around fuel performance and engine maintenance, Jio-bp has worked over multiple years with the best technologists to develop customised additive from scratch. This additive-laced high performance diesel is designed specifically for Indian vehicles, on Indian roads, and in Indian driving conditions.”
Also Read: Understanding fuel price dynamics in India
Reliance BP Mobility Ltd, Nayara Energy and Shell sold petrol and diesel at huge losses till April, as they tried to match the fixed rates of dominant public sector retailers, according to the Press Trust of India.
The losses were despite pricing fuel at slightly higher rates than state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (BPCL).
In November 2021, IOC, BPCL and HPCL froze petrol and diesel rates for 137 days, when five states, including Uttar Pradesh, went to the polls. A second round of pause began in April 2022 and it still continues.
Private retailers scaled down retail operations to cut losses as they were unable to match the cost rates of PSUs. According to the Economic Times, RBML incurred Rs700 crore loss a month and Nayara Energy raised prices of petrol and diesel by up to Rs3 a litre over and above the PSU rates to cover for some losses. However, since April, both companies are pricing petrol and diesel at market rates for the first time in over a year after a fall in global oil prices cut losses.
Reliance owns and operates two refineries, including one only meant for exports, at Jamnagar in Gujarat. BP has no equity shareholding in them. RBML is an equal joint venture of Reliance Industries, and BP with separate legal identity and separate financial books. RBML buys fuel at market price from Reliance as well as other oil companies to supply to its other petrol pumps.
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