• PAGE ONE
• INDEX
• HOME

`Fall in diesel use will hit oil industry'

Our Bureau

MUMBAI, Sept. 26

A SHARP fall in diesel consumption (negative growth compared to the previous year) is expected to hit network expansion plans of the oil industry, warned Mr U. Sundararajan, Chairman and Managing Director, Bharat Petroleum Corporation Ltd.

Growth rates of diesel consumption have slumped from 6 per cent and 11 per cent between 1994-95 to 1999-2000 to a mere 3 per cent last year, further sliding to the negative in the current fiscal.

As against the total consumption of approximately 100 million tonnes of petroleum products (including imports and sales by private parties) during 2000-01, the country's installed capacity is 112 million tonnes.

Referring to BPCL's performance, Mr Sundararajan said

the company has seen a 35 per cent jump in refining margins compared to the industry average of three per cent during the fiscal.

The company would, however, fall short on refining capacity despite taking into account production of the newly acquired Numaligarh and Kochi refineries, the chairman said.

Mr Sundararajan said in the near future, BPCL would focus on the non-fuel sector by setting up branded convenience centres called `In and Out' stores and ``entering strategic alliances with leading brands in various consumer product and services''.

The company would concentrate on its newly launched campaigns such as `Enhance Fuel Proposition' programme and `Pure for Sure'.

During the current fiscal, BPCL saw its refinery throughput increase by 11 per cent to 3.72 million tonnes while sales went up by 0.85 per cent at 8.02 million tonnes in the first five months.