Sunday, April 05, 2009

Does branded petrol really give you that extra mile?

By M H Ahssan

Next time you pay Rs 2 extra per litre to tank up on branded petrol, you are probably being taken for a ride. For, the state-run oil marketing companies have failed to back up their claim of this fuel giving higher mileage and better engine performance before the Monopolies and Restrictive Trade Practices Commission (MRTPC).

Not just that, the oil companies have also been unable to explain how they have reached the price mechanism in case of branded fuel. MRTPC had asked the companies to “clarify the quantitative difference between normal fuel and branded fuel along with supportive documents.’’

The query, however, failed to get the companies to furnish anything more than letters from additive suppliers in support their claim. While the additive suppliers, the Singapore branch of Chevron and Oronite, have spoken about the benefits of branded fuel, it has failed to impress the Commission as it doesn’t regard the suppliers as non-partial authority; on the contrary they are viewed as vested interests.

The suppliers’ certificates do not talk about any test having been carried out on branded petrol. On branded diesel, they says the use of these fuel “ensures a lower flow loss than worldwide norm”. The certificates are silent on extra mileage. The failure to get the right tests done is not for want of facilities. The government-run Automotive Research Association of India (ARAI) is said to be a competent authority for such tests.

The MRTPC approached the ARAI to check if it has any view on the branded fuels. But the association told the Commission that it doesm’t have results of any tests as it was never asked to carry out “any branded fuel evaluation test.’’

Oil company executives told TOI these additives are globally certified by independent labs and accepted in US and European markets. “The results clearly showed improved drivability and maintenance cycle,’’ one senior IndianOil R&D executive said. Branded fuels come with added chemicals, which, the companies claim, help reduce engine friction and improve performance. While oil marketers are free to decide prices of such fuels within a band, the government controls the prices of normal fuels and had kept their price artificially low during crude’s climb to a peak of $147/barrel in mid-July.

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