Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 11th June 2009, 11:27   #1
BHPian
 
Join Date: Jan 2008
Location: Bangalore
Posts: 188
Thanked: 59 Times
Default New system launched for auto-LPG pricing

Kolkata. June 10 The public sector oil companies including IndianOil, BPCL and HPCL have introduced a new pricing mechanism for auto-LPG.
Under this, auto LPG has been priced 40 per cent cheaper than petrol to boost sales. The move has been initiated because pricewise auto-LPG was proving less attractive to consumers. Not without reasons though.
In sharp contrast to petrol and diesel, whose prices are controlled by the government, auto LPG, an alternative to petrol, was marketed under free pricing mechanism. The oil PSUs earlier sold auto-LPG at prices directly linked to those in the international market. The policy suffered a setback last year because, with the rise in international crude prices, the auto-LPG price also shot up causing drop in its sales.
“As crude prices started surging ahead once again, we decided to settle for a new pricing mechanism so as to retain volume growth by sacrificing margins, if necessary. The new mechanism, however, will be in force till margins are not squeezed below certain minimum level,” a oil PSU executive told Business Line.
Auto LPG is currently priced at Rs. 26.43 a litre, nearly 40 per cent cheaper than petrol at Rs. 44 a litre in Kolkata.
According to the official, the pricing mechanism, introduced at the beginning of this fiscal, yielded fruits. So far monthly auto-LPG sales volume by the three companies posted over 20-30 per cent increase to 14-17 thousand tonne in the first quarter of 2009-10 compared to the corresponding period last year.
“True, the number retail outlets have gone up, but the per pump throughput too has risen,” the source said.
When contacted, an IOC official said that the company added 56 new outlets during the last fiscal taking the total to 223 as against a total of 447 of all three companies. IOC was planning to add at least 70 more auto-LPG outlets during this fiscal.




source: The Hindu Business Line : New system launched for auto-LPG pricing
rajesh1868 is online now   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
New WagonR Duo OR Chevy Spark LS LPG OR Hyundai i10 LPG? Oxy Hatchbacks 39 24th August 2014 08:02
Auto Fusion Pricing - Fair? gt_bhp In-Car Entertainment 65 22nd January 2014 21:22
LPG car for my parents (Old Alto or new 800 LPG) jits_1998 Hatchbacks 7 9th October 2009 11:19
K&N , Exhaust and other mods through Perf. Auto. Pricing and tthe Should I factor zaphod Modifications & Accessories 24 26th August 2007 14:59


All times are GMT +5.5. The time now is 14:23.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks