Staff Reporter

HYDERABAD: It’s made to boost your vehicles performance. However, the sales of premium or super fuels have been falling in the past few months. Owing to the ongoing recession, bunk owners in the city say that motorists these days prefer normal fuel to premium products.

B. Anirudh made it a point to fill only premium petrol in his pulsar 220 on the way to college. But now, the 19-year-old has decided to make do with normal petrol. “A good thing about branded products is that they don’t let the engine heat up soon. But with cost cuttings everywhere, I decided to use the normal petrol instead,” he says.

Price differential

With regular petrol costing Rs. 45.56 and diesel being sold at Rs. 33.90 per litre, the premium versions of such fuels are priced at Rs. 48.06 and Rs. 35.67 respectively. Few months back when the government announced a slash in the fuel prices, the traders hoped that the sale of premium products would go up.

Ironically, this is not the case as bunk owners say that there is a 10 per cent decrease in the sales of premium products.

High tax

“With all the markets being affected by recession, customers are also playing it safe and are not buying premium petrol or diesel. Moreover those who used to specifically ask for the premium products have also started buying regular petrol,” points out T.C. Goel, secretary of Greater Hyderabad Petrol and Dealers Association.

Company officials say the dip in sales can also be attributed to the high tax structure on premium products. “The price difference between regular and premium products is about Rs. 2.50, out of which Rs. 2.10 is for taxes alone, which is higher compared than regular fuel. Also, companies have stopped advertising regarding super or premium fuels, as part of the cost-cutting measures,” says a company official.