BPCL ready to take on Indian Oil

Bharat Petroleum Corporation Ltd. (BPCL), with the completion of its product pipeline to Delhi, has strengthened its sinews to take on Indian Oil Corporation (IOC) in the lucrative northern market. The 775-km pipeline has cost the company Rs807 crores (US$182.04 million) and will enable it to transport 2.2 million tons of petrol, diesel fuel and jet fuel a year directly to Delhi from its Mumbai refinery. This is part of the nationwide product exchange arrangement the public sector companies have among themselves, which entitles them to lift products from each other’s refineries to feed their retail outlets. This tends to put HPCL and BPCL at a relative disadvantage vis-à-vis IOC, especially when there is fierce competition in the retail market. (December 20, 2006)