Tuesday, 13 November 2012

Meltdown of premium petrol variants - oil prices part - 3


                                                 If you are a frequent user of gas stations, you might have noticed the increase in prices of premium petrol products like speed, extra premium etc which were wooing customers with increased efficiency, mileage and with lot of stuffs. Three major oil companies Hindustan petroleum, bharat petroleum and Indian Oil Corporation all set to stop production of these premium variants. 

There is a sharp decrease in consumption of these premium products in market due to continuous rise in oil prices and when government withdrew its subsidy the curtains are almost down. The price difference between premium versions and normal versions earlier would be in the range of 2 to 3 max. But with governments subsidy cut, now the difference mounts to 8 rupees. This can distance consumers from using it. The slump is major setback for the oil companies because of the huge investment spent in branding and infrastructure facilities. Statistical data reveals the setback is already projected three years back which stopped oil companies from further investment in this particular division. It also reveals high end SUV users, who were the main consumers of these premium variants also looking to prefer normal variants. The much hyped premium petrol products which were the cash cows once were now set for a decline.

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