Current scenario and possibilities
India is the world’s third largest oil consumer already and the oil consumption would double in the next decade or so. India’s annual Diesel consumption is 90 billion litres and it is expected to rise to 150 billion litres by 2030. We import 80% of our oil needs which adds huge pressure on our current account deficit (CAD). Government aims to cut down the import by at least 10% by 2022. Government plans to do this by promoting greener technologies and bio fuels.
Diesel Consumption Sector Wise:
PPAC, Ministry of Petroleum, released a report that reveals the sector wise consumption of Diesel in India. Transport sector consumes a maximum that is 70% of the total Diesel, which can further be subdivided into 28% by trucks, 10% by buses, 3.4% by railways, 9% by commercial vehicles and only 13% by private vehicles.
17% of the total Diesel is consumed by the industries and 13% of the total is consumed by agriculture and allied business.
Increasing Demand of Diesel Vs Supply:
Now, 90% of the Diesel in India is sold through the retail outlets. This is a very significant fact as this has overreaching impact across industries.
Unlike private cars and vehicles, it is difficult for the rest of the industry to procure Diesel easily.This system of procuring diesel in bulk leads to heavy losses in money , time and environmental damage in the form of dead mileage, spillages, pilferage, fuel adulteration and losses due to evaporation.
All these losses in total amount to 5-10% of the total consumption. Which is INR 700 Billion and carbon emissions worth planting 24crore trees.
So what is the option?
Take Energy on Wheels!
Doorstep Delivery of Fuel. With all the technological advancements we can deliver all the energies at the doorsteps through a Mobile Fuel Station.
This Mobile Petrol Pump/Fuel station is equipped with all the latest technology like the internet of things which helps a controller talk to the vehicle and measure every drop of diesel that is dispensed through the nozzle and reflect the same on an app!
The IoT controller also ensures safety while refuelling by a mechanism called Interlock Mechanism which makes sure the vehicle doesn’t move while refuelling. Fuel Sensors make sure that the quality and quantity of fuel are displayed to the end user while ordering fuel. The Mobile Petrol Pump is connected to the mobile app and in turn convenience and transparency is delivered to the end user. As of now there are only roughly around 66 thousand petroleum retail outlets operating in India and these are already inadequate number to cater to the current demands. Looking at the future projections and future demand, we need thousands of more retail petrol pumps operating in India but starting a retail pump is a capital intensive and tedious task. In such a scenario, the innovative solution of Doorstep diesel delivery becomes a very attractive solution.
Starting a Fuel delivery startup or through the existing retail outlets is comparatively a much easier process and requires relatively small investments. In the aftermath of the efficacy of such a solution, the Government of India has also allowed aspiring fuel entrepreneurs to start fuel reselling through fuel startups, which was not permissible hitherto. These developments have made this solution of doorstep diesel delivery extremely scalable and thus it can solve the burning problem of supply vs demand of fuel in India. The fuel startups have an enormous opportunity to carve out pieces of this big market by providing effective and efficient solutions to their bulk consumers of diesel by avoiding dead mileages, man-hours loss and wastage of fuel. Providing such a service shall help these startups in making a place for themselves as successful businesses.