In mid-2017, the Petroleum and Explosives Safety Organisation (PESO), a government agency responsible for securing the safety of the public from petroleum products and creating certain that dealers follow the protocol, issued an order directing state-run oil marketing companies as well as private retailers to no more extended supply fuel to FuelBuddy, citing safety concerns.
The startup doesn’t appear to possess straight tie-ups with any Oil Marketing Companies. It still sources its fuel from private dealers. It tops up its fleet of vehicles from regular dispensing units, which is illegal since doorstep delivery bowsers can only be filled at “specially prepared areas attached to a service station.”
The more direct fulmination, which could close up submitting a strain in the completion of on-demand fuel startups, is the hue and cry from autonomous petrol pump owners. Since its inception, the initiative has not set well with them, and for a good reason.
With oil marketing companies (OMCs) requesting expressions of interest (EoIs) for home delivery of diesel, the fuel delivery startups can immediately grow official resellers by becoming registered as Fuel Entrepreneurs (FuelEnts). The startups such as FuelBuddy, among others who were previously promoting OMCs such as HPCL, IOC, others in fuel delivery, can immediately sell regularly to the customers with their name on the invoice.
The decision is expected to provide a significant boost to the fuel delivery segment. The market is expected to be around Rs 1,500-2,000 crore in the coming 12-18 months, said Singh. He noted that with interest for diesel demanded to rise additional, the move will direct out to be crucial proceeding ahead. The consumption of diesel in India in FY20 stood at 82.6 million tonnes.
The days of a fuel station’s role as a convenient fuel stop are numbered. Changing consumer expectations, market economics, and competing shifting dynamics indicate that oil companies and pure fuel retailers are below pressure to reinvent the fuel station as part of their overall digital business transformation.
Today’s consumers are all about choice. They see to gain the best profit not merely for their vehicle but also themselves. Purchases must be experiential. Comfort, location or price, and consumers’ attention to a brand, determined by their communication with it, compete to feign their purchasing power. Particularly in an automated, digital future where IT modernization is imperative despite the driver is no longer behind the wheel.
https://fuelbuddy.in/