Are branded fuels really worth it?

Pradeep Thakur & Sanjay Dutta | TNN

New Delhi: The next time you pay Rs 2 extra per litre to tank up on branded
petrol, you are probably being taken for a ride. The state-run oil marketing
companies have failed to back up their claim to the Monopolies and
Restrictive Trade Practices Commission (MRTPC) that the fuel gives higher
mileage and better engine performance than the unbranded variety.
The oil companies have also been unable to explain how they fixed the price
of branded fuel. The MRTPC had asked the companies to “clarify the
quantitive difference between normal fuel and branded fuel alongwith
supportive documents.’’ But the companies were unable to furnish anything to
support their claim other than letters from additive suppliers. These
suppliers, the Singapore branch of Chevron and Oronite, spoke of the
benefits of branded fuel but failed to impress the Commission because they
cannot be seen as impartial. In fact, they are viewed as vested interests.
The suppliers’ certificates do not mention any tests carried out on branded
petrol. They say that branded diesel “ensures a lower flow loss than
worldwide norm”. The certificates are silent on extra mileage. It’s thought
the failure to get the right tests done was not for want of facilities. The
government-run Automotive Research Association of India (ARAI) is said to be
the competent authority.
The MRTPC had approached the ARAI to check if it has a view on branded fuel.
But it said it didn’t have the results of relevant tests as it had not been
asked to carry out “any branded fuel evaluation test.’’ Oil company
executives told TOI fuel additives are globally certified by independent
labs and accepted in the US and European markets. The suppliers are also
wellknown for their domain knowledge. ‘‘Despite the global certification,
the additives were introduced after tests in our labs and field trials with
state transport utilites. The results clearly showed improved drivability
and maintenance cycle,’’ one senior IndianOil R&D executive said.

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