Fuelling demand: Start-ups show interest in doorstep delivery of diesel

OMCs to come up with fresh EoIs on Nov 15

State-run oil-marketing companies - Indian Oil Corporation (IndianOil), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) - have received expressions of interest (EoIs) from 355 start-ups across the country for doorstep delivery of fuel.

This comes at a time when OMCs are planning to launch home delivery of petrol and compressed natural gas (CNG) before March 2021. 

The downstream companies had invited two rounds of EoIs from start-ups recognised by the Department for Promotion of Industry and Internal Trade for door-to-door delivery of diesel. 

According to a source, 123 start-ups  - 52 for IndianOil, 30 for BPCL, and 41 for HPCL - had evinced an interest in Round 1.

In Round 2, 232 start-ups - 107 for IndianOil, 72 for BPCL, and 53 for HPCL - had shown interest.

The OMCs are planning to come up with Round 3 by November 15. 

According to industry estimates, the mobile petrol pump business is expected to see an investment of Rs 9,000 crore.

For start-ups which sign up as fuel entrepreneurs (FuelEnts), at least Rs 2,000 crore revenue is up for grabs in the next 12-18 months.

Wellington-based GOFuel - the largest fuel station network on the marina throughout New Zealand - too has shown willingness.

Delhi-based FuelBuddy, Pune-based Repos Energy India, Noida-based Pepfuels, Bengaluru-based MyPetrolPump, and Delhi-based Humsafar are among those that are already delivering diesel to your door. They are the official resellers or FuelEnts.

Companies like Repos Energy India are acting as an ecosystem provider for the new start-ups that have enrolled.

"Around 150 start-ups have signed up. Repos will provide them with end-to-end solutions," said Chetan Walunj, chief executive officer of Repos Energy India, which is an energy distribution start-up backed by Ratan Tata. 

The company also leverages Internet of Things- and artificial intelligence-driven Repos mobile petrol pumps to start-ups registered through them.

Some of the fuel start-ups which have registered with Repos are Easy Diesel from Pune, Nuvera Energy from Mumbai, Auro Fuel from Bengaluru, AMA Fuels from Kerala, Ecological Fuels from Guwahati, and Future Fuel Services from Mirzapur in Uttar Pradesh.

A senior executive said the company was in the process of finalising certain standards and protocols to start home delivery of petrol and CNG.

“Once we finalise the protocols, Petroleum and Explosives Safety Organisation will place its comments and give clearance,” he said.

Pumped Up

217: No. of cities with doorstep delivery of diesel

355: No. of start-ups that have evinced an interest

159: Start-ups that submitted EoIs to IndianOil

102: Start-ups that submitted EoIs to BPCL

94: Start-ups that submitted EoIs to HPCL