The consumption of branded petrol which is less polluting and engine friendly is likely go up as the Finance Minister, in the budget, proposed to reduce excise duty on branded petrol from 7.5 per cent to 2.35 per cent, making it cheaper. According to officials of oil marketing companies branded petrol price will be cheaper by around Rs. 6 per litre.
Public sector oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd have branded petrol namely Xtrapremium, Speed and Power respectively but their sale has been miniscule considering that branded petrol costs nearly Rs. 10 more than unbranded petrol per litre in India.
“It will take time as there is hardly any production and sale of branded petrol as it is costly. Oil companies will have to recalibrate their dispensing machines and make space for branded petrol in underground tanks before people can actually get it,” said Ravi Shinde, president, Petrol Dealers Association, Mumbai.
