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India has the same number of vehicles as the US, but still has a lesser number of fuel stations. For 200 Million vehicles, India has only 60,000 fuel stations. This underdeveloped supply chain causes a scanty distribution of fuel. To fill the distribution gap, the country requires more than 78,000 fuel stations, which is not feasible for the economy.

“According to statistics, by 2030 we might need more 180,000 fuel stations for metro cities, semi-urban and rural areas which are out of the question”

Also after the rapid decline in sales during the lockdown, fuel stations are uncertain about complexities like land acquisition and high real estate costs. Due to this, the All India Petroleum Dealers Association (AIPDA) has granted a financial relief package for the fuel stations.

Fuels like diesel and gasoline are not only used for vehicles but also in tractors, diesel operated ovens and dryers, construction equipment, and generators used in hospitals, residential complexes, corporate offices, schools, airports, industries, etc. For every use, carrying bulking equipment or sending employees to the fuel stations for fulfilling fuel requirements is not feasible.

Here the Fuel Delivery Startups come to fix the loophole.

Market Opportunities For Fuel Delivery Startups

Doorstep Delivery of Fuel” is now referred to as the “Uber of Fuel”. And undoubtedly, this is the next big thing happening in the Retail Fuel Industry. The demand for petroleum oil in India was 4.4 million barrels per day and it is expected to rise to 8.4 million barrels per day by the year 2035. According to studies, one billion gallons of fuel is lost while transportation of fuel. An average commuter wastes three to four hours per month in traveling to fuel stations. So building a sustainable supply chain for fuel requirements will be a high-priority task.

The market size and opportunities for the doorstep fuel delivery to levitate are endless.

“The Ministry of Petroleum and Natural Gas has legalized home delivery of high-speed diesel (HSD) and has also launched guidelines for fuel distribution and safety as Petroleum Explosives Safety Organization (PESO).” 

These prospects are necessary because delivering huge quantities of toxic and flammable materials will be more complex with 10,000 gallons capacity tankers.

For FuelEnt (Fuel Entrepreneur) startups, the government has sanctioned Rs 2,000 crore last year. With this initiative, all the fuel delivery startups such as FuelBuddy, Repos, and Pepfuels who have worked in collaboration with Oil Marketing Companies (OMCs), will now work autonomously.

Are Fuel Delivery Startups The Future of the Fuel Industry?

Why Not? Startups that innovate and revive a dying segment will always be the future of that industry. Doorstep fuel delivery is making the Retail Fuel Industry more precise and sustainable.

These Startups are powered by an application that provides information about backend engine, IoT integration, RFID, geo-fencing, geo-tagging, navigation features, and storage facilities. With Fuel Delivery Startups, the fuel supply chain will be more convenient, safe, and free from spillage, pilferage, and adulteration.

With advances in the Electric Vehicle sector, the Fuel Delivery Startups can pivot anytime towards Mobile EV charging services. If the EV sector takes over the fossil fuel industry, it’s the unsustainable sources of fuel that’ll go down and not the FuelEnt.

“Repos, a fuel delivery startup backed by Tata Group has registered over 100 Fuel Startups across the nation with their Repos Mobile Petrol Pump (RMPP). So now, anyone can set their fuel delivery business and become a FuelEnt

Source: Fuel Delivery Startups: Is It The Future Of Fuel Industry?


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