When Indian Oil Corporation (IOC) chose Pune for its first outlet to supply fuel at doorstep, the decision was more driven by convenience than strategy. “We had a company-owned vehicle with a Maharashtra registration; that is why Pune,” an IOC official said.
This, more or less, is the story of implementing ‘fuel at doorstep’ for the first time in India. IOC was the first oil marketing company (OMC) to start such a service in March. It is mandatory for oil marketing companies to transport fuel under this service through a company-owned specially designed vehicle, which is registered in the same state where it wishes to use it for delivery. According to industry officials, unavailability of such company-owned and registered vehicles was one reason delaying the rollout for the other two OMCs. This is one of the many strict guidelines put in place, to ensure transportation of a highly inflammable liquid like diesel.
To begin with, ‘fuel at doorstep’ will continue to remain a distant dream for the retail user, as that is not an option under consideration. “The permission right now is for delivery only for stationary usage,” said Sanjeev K Jain, executive director of retail sales at IOC. This limits the service to those who run units like diesel generation sets (DG Sets). That is the profile of the current 15 customers who IOC is allowed to supply fuel at doorstep from its Pune outlet.
“We have permission for 15 customers, of which nine are taking delivery,” Jain added. The process to enjoy a premium service like this is also complicated. Customers willing to choose this service need to approach the dealer or company, the company in turn send the details of the customer to the regulatory agency and the agency has to approve the customer. “This process may take a couple of weeks,” Jain said. The service is typically targeting customers with usage of hundreds of litres of diesel. Petroleum and Explosives Safety Organisation (PESO) is the regulatory agency.
The three state-run oil marketing companies (OMCs) that are allowed to operate one outlet each with this service, need to adhere to a long list of guidelines, mostly put in place to ensure the safety of movement of the fuel. The list includes – company ownership of the vehicles, restricted to stationary units and limited to diesel movement.
Some of these, Sanjeev K Jain adds, needs to be relaxed later if the model has to be replicated on a larger scale. He added it will be difficult to run a wide network of doorstep fuel supply solely based on company-owned vehicles. “At some point, dealers or a third party should be allowed to own and operate these delivery vehicles,” he said.
At present, it is expected that state-run OMCs may be allowed to operate eight outlets each on the same model in the next six months time. Though private oil retail companies are willing, this service has been limited to OMCs.
To be sure, this is not the first time, the idea is being explored. It was mooted as an idea a few years back but had to be put on the backburner for the lack of technological advancements.
Jain explains that the delivery vehicles are geo-fenced to dispense diesel only once it is at a pre-specified location or within its 500-metre range. “This is to ensure that fuel is not being diesel anywhere on the road or unsafe location,” he added.
Oil marketing companies are up for a long journey, the next leg of which may be opening up the service to fleet operators. Though at a later stage, the idea of providing this service to companies that operate a fleet of automobiles may be considered. However, the idea of supplying it at the doorstep of four-wheeler owner or supplying petrol is nowhere on the cards.
Jain concludes there is more work to be done. Part of which includes consultation amongst the three oil marketing companies to arrive at a more detailed policy to set the guidelines for this service. Also, Jain adds, “we have been discussing we may need a brand name too.” IOC, at the moment, offers this service under the generic name ‘Fuel at doorstep’.
