Rosneft, BP Entry May Fuel Retail Competition

While PSUs may feel the heat, consumers are likely to benefit from quality service
India’s fuel retailing sector is poised for unprecedented competition with Russia’s Rosneft and Britain’s BP Plc set to operate petrol pumps with global best practices, which can shake up the statedominated sector and give consumers international quality service.

Armed with fat balance sheets and a welcoming government, these aggressive oil biggies can challenge the dominance of state firms, which have 95% share in the business. This will also pose a stiff challenge for Reliance Industries, which also has a presence in fuel retail.

Pump owners and state firms are already talking about how foreign firms can snatch their customers with sleek marketing, branding and international quality services.BP has just received a licence to set up 3,500 pumps, while Rosneft will inherit 2,700 retail outlets following a deal to acquire Essar Oil.

Foreign oil producers, struggling with low oil prices for two years, are targeting large markets such as India. Saudi Aramco, the global giant with $13 trillion worth of reserves, and France’s Total have also shown interest in marketing fuel in in India, the fastest growing major economy and third-largest oil consumer in the world.

Their strong resolve, rich global experience, brand equity and the big pile of cash will range against the incumbents’ local experience, a sturdy network of filling stations and supplies across the country.

“BP and Rosneft can put up a big challenge for the incumbents.If they are willing to spend, they can expect a fast rollout. With the government ready to welcome them with open arms, they shouldn’t face many hurdles in securing supplies or expanding the network,“ said Amresh Kapoor, former executive director at Indian Oil Corporation (IOC).

“Foreign players could introduce many global best practices that would help raise the service level and act as the key differentiator. With a heavy use of technology and innovation, they could win the market,“ said Gaurav Moda, consultant at KPMG.

Pump owners are worried. “Foreign players might just take away our customers. With fresh look, equipment, advanced technologies, higher service level and brand equity , they will certainly have an advantage over us,“ said Nitin Goyal, an office-bearer at All India Petroleum Dealers Association.

State firms are alert. “We are fully geared to compete. New players are welcome. It will increase competition and eventually benefit customers,“ said BSCanth, director marketing at IOC, the country’s largest fuel retailer. Canth said state firms learned their lesson a decade back when Reliance Industries came from behind to grab a big chunk of the market.“Our systems are ready. We have back-end logis tics in place and a huge network in all regions.“ Fore ign players would have to learn the local business nuances to compete with us, he said.

“Most of the challenges will happen on the highways where diesel is the most dominant fuel. He re, the key would be to catch the fle et owners,“ said Moda.

Diesel sales are three times that of petrol. In the current fiscal, die sel sales are up 3% while petrol has risen 10.5%. Diesel price de control in 2014 brought back priva te players such as Essar Oil and Reliance Industries to fuel retai ling they had exited almost a deca de ago after crude spike had reint roduced regulation.

Foreign players would find it hard to obtain land in big cities for pumps but the highways and smaller cities could become their playground.

“How the market share gets divi ded ultimately will depend largely on the rate at which our fuel con sumption grows. If it grows at a faster rate, the state firms will be better able to protect their sales,“ Kapoor said.

Reliance and Essar own about 4,000 of the 56,000 outlets across the country. IOC has a little more than 25,000 outlets while Hindustan Petroleum and Bharat Petroleum together operate about 27,500 outlets. Shell, the only foreign player so far, has less than 100 stations. Shell’s limited presence and an uninspiring second innings by Reliance has given some analysts to conclude that the new entrants may stay slow.

rosneft

Open Up Oil Marketing

We need to purposefully open-up oil marketing. It makes no sense to ring-fence the retail marketing of oil products solely for the oil companies. It is sub-optimal, monopolistic and goes against the consumer interest. It is not even as per international practice. Abroad, `independent’ oil retailers account for as much as half the retail offtake of petro-goods. We need similar opening-up here.It would boost realisations in the larger retail industry and improve service quality at the oil pumps. We definitely need much more competition in India’s large and growing oil economy.

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New Reports and Modules.

Now you can see running total  for fuel items while entering the nozzle reading for fuel items, which earlier was possible only after seeing the Shift Analysis Report or MIS page. In the Meter Reading Entry Form there is a new toggle button at the bottom called <Show Summary> / <Hide Summary> as shown in the image below:

Meter Summary

Show/Hide Item Sales Summary for Meter/Nozzle Sale Entered

Now you can also auto print the cash sale bill/receipt, which earlier required you to first save and then print/preview the last invoice. With New button now it first saves then automatically fires the receipt to the printer, one must make sure that the printer is turned on.

Save-n-Print.jpg

Incorporated two new Tax introduced by Indian Government called SWC – Swtchh Bharat Cess and KKC – Krishi Kalyan Cess applicable on service tax. This is applicable to the petrol-pump dealers charging Processing Fees or Account Handling Charges or Account Processing Charges, etc., on the Bill amount towards the credit facility given to the customers for bill payment as a normal practice in Mumbai.

SWC_KKC

Configuration for SBC & KKC on Service Tax

With New version now you can print sales register as per meter reading with the nozzle-wise, Item-wise and Tank-wise sales reports for the selected period from Reports->Sales->Sales Register (Slips) as shown below:

Nozzle sales register

Meter Reading Sales Reports

Please find below the preview of the reports for your reference:

Nozzle Meter Sale Details

Nozzle-wise, Item-wise Sales Report Preview

Also added much needed reports for Credit Card sales as demanded by many customers…

Credit Card Report

Credit Card Sales Reports

Now you can enter the Cash Transfer by Cashier/DSM/Supervisor without the denomination but with date and time details and frequency / number of times cash transferred to tally the cash for the DSM, vis-a-vis the the fuel dispensed on credit/cc/pc basic. Please note that one can invoke this modules from Meter Reading form by clicking on the <Denomination> button on the Meter Reading Entry form.

Denomination

Enter Cash Denomination Summary

Also please note that now it will correctly fetch the Receipt/Payment by DSM from the voucher for the selected shift and also correctly fetches all the Credit/CC/PC indent for the respective nozzles, which earlier used to duplicate, which user required to manually set to zero (0). Also now when you manually change the quantity the value automatically calculated as per the prevailing rate and similarly quantity would be automatically calculated if user enters the value for credit/cc/pc column. This has resulted in using the ArtRM software and this form practically to actually tally cash efficiently.

Monthly P&L: The much needed and required almost by every pump dealers to check the profitability and expenses incurred at every pump, which earlier used to take lot of time to process and required to select the period or click on many keys to find the profit or loss.

monthly pnl

Monthly Profit & Expenses Summary

The ArtRM, instantly processes and populates the Profit and Expenses details for every month and also allows to export the same to Excel.

Shift Report: Additional New Reports added in Reports->Petrolpump->Daily Shift Analysis->Day Analysis (Shifts-Clubbed) as shown below and also for the individual shifts in Shift-wise Report tab.

Shift Reports

Daily Shift Analysis Reports

Daily MIS on TIPS Page and Improved Workflow.

13th January, 2014

Greetings!

Wish you all a Very Happy New Year.

With the new update, now you need not worry about the Date Selection while entering Meter Reading Entry, Slip Entry, Voucher, Dip, etc., Whatever Date and Shift is selected on the TIPS page will now be set for the respective from called from TIPS page. Earlier user would forget to Select the Date/Shift and data would get entered for different Date/Shift, which requried to be Edited and so on…

Also New, Button <MIS> is Introduced Next to Date/Shift selection on the TIPS page as shown below:

Daily MIS on TIPS

Daily MIS on TIPS

When you click on MIS button you will see All the Transaction for the selected Date/Shift with Opening Cash Balance for the Selected Date/Shift and actual Cash Receipt/Payment duly Added/Subtracted from the opening balance and available Cash Balance duly computed shown at the bottom-left of the screen as shown below:

Daily MIS with Cash Balance

Daily MIS with Cash Balance

Also find new Grids, Item-wise Sales summary and Sale Type Wise Item-wise Sales Summary below the Meter Reading Grid. The best part is that all the Information displayed on the form can be exported to Excel by just pressing the <Export to Excel> Button on Bottom-Left of the Screen. Please find below the screen dump of Excel Export Screen of MIS:

Daily MIS Export to Excel

Daily MIS Export to Excel

How To Cut Back Your Car Fuel Consumption Costs

Nice Tips on Increasing fuel efficiency of your car.

sampsonewuzie's Blog

Cars And Fuel Consumption

Cars And Fuel Consumption

Everybody knows, even the whole world know it, that to own a car is not an easy task most especially here in Nigeria very expensive. It’s not enough, you will need to pay for your car documentation and the renewal every year, you’ve also got to deal with equally ridiculous fuel and maintenance costs. Maybe that’s why we have such a love/hate relationship with car ownership in Nigeria. But we hate the huge cost that comes with owning a car.

While you can’t lower the cost of buying a car, you can lower your fuel and maintenance costs with some cheap and simple guidelines. Here are experts’ advices on what you can do to make driving less expensive and drive safely this festive period and later as the case maybe:

Watch your speed limits: The biggest way you can save money on petrol is to obey…

View original post 524 more words

How to become Dealer/Distributor for IOC Oil Marketing Business.

How to become Dealer/Distributor for IOC Oil Marketing Business.

Q: How to get a New Dealership/Distributorship of Oil Marketing Companies in India.

Ans: Generally Oil Marketing companies releases advertisements for new Distributorships in Newspapers in Hindi, English and other vernacular language of the area. Kindly look for such advertisement, in your location of interest. Selection would be made from the applications received in response to such advertisements meeting the eligibility criteria given therein. For further details you may view our Brochure/Application form on dealership/distributorships of respective oil marketing companies as given below or contact regional office :

Indian Oil Corporation Ltd.
http://www.iocl.com/Talktous/Guidelines.aspx

Hindustan Petroleum Corporation Ltd.
http://hindustanpetroleum.com/Downloads

Bharat Petroleum Corporation Ltd.
http://www.bharatpetroleum.in/dealer/dealerSection.asp

Bulk Voucher Posting and Merge Account Ledger…

Greetings!

Release Date: 11th Nov, 2013.

Ver: 2.1.100

Club Accounts

Now you can merge two ledger with ease. There are times when user by mistake creates the same ledger account twice and after having entered vouchers in both ledgers realizes to club them and get rid off one.

To Merge two accounts and get rid off one ledger Just go to Masters->Account->Ledger Master. On the Ledger Master form you will find new Tab <Merge Ledger> as shown below.

Image

In the “Transfer Transaction From Source Ledger” frame, Just Select the Account you wish to get rid off

and

Select the Account with which you wish to merge/club In the “Merge Transaction with the Existing Ledger” frame

On Selecting the respective ledger it will show you the Ledger Entity Type, Number of entries found and opening balance entered, if any.

On Clicking the <Merge> button it will ask you to confirm the action and finally before deleting the Source Ledger, it will again ask you to confirm the deletion of the ledger.

Bulk Voucher Posting

Voucher->Auto Post Voucher Tab

At petrol-pumps daily there are repetitive work and regular expenses which is some times forgotten just due to work-load. Also at the month-end there are regular expense vouchers like salary payment which is really cumbersome for petrol-pump as there are 15-25 pump boys and entering voucher for each of them is really time taking.

We have tried to simplify the above process by allowing user to select the multiple ledger accounts and create the list of expenditure for which you wish to automatically post the voucher as shown below:

Image

 

Just Select the ledger in “Create Expense List for Auto Voucher Posting” frame and Click on [ -> ]  or  [ <- ] button to select and un-select the ledger from the list and then cilck on <Bulk List> button to populate the list in “Bulk Post Pre Defined Payment Voucher” frame as shown above. The Voucher Date will make sure the voucher is posted on the date entered. Just make sure you enter the correct value and Click on <Save Bulk Voucher> button to save the list and also save each account as a separate voucher.

Pressing <Clear> button will clear the list and allow you to generate the fresh list.

 

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