M&D of Hpcl
Marketing Discipline Guidelines
for RO / SKO Dealerships of Public Sector Marketing Companies
Effective 8th January 2013
MARKETING DISCIPLINE GUIDELINES – 2012
RETAIL OUTLET DEALESHIP / SUPERIOR KEROSENE OIL DEALERSHIP
INTRODUCTION – The evolution of oil industry in India can be traced to the early 20 th century when the industry began its operations through Superior Kerosene Oil (SKO) dealerships. In due course of time the petroleum business prospered and expanded and by independence the industry had commenced marketing of Motor Spirit (MS) and High Speed Diesel (HSD). The network developed under private oil companies like Burmah Shell, Caltex and ESSO. In 1958, Indian Oil Corporation (IOC) was formed giving birth to the entry of the public sector in the petroleum business. Thereafter with the nationalization of Burmah Shell, Caltex and ESSO in the 1970s, the concept of public sector oil companies came into being and the petroleum business prospered witnessing substantial growth.
In 2001-02 the public sector oil marketing companies (OMCs) had a network around 16000 retail outlets (ROs), 9000 LPG distributorships and 6500 SKO dealerships. The network has seen tremendous expansion to nearly 41000 RO dealerships, 11100 LPG distributorships and 6600 SKO dealerships as on 01.01.2012. The deregulation of the petroleum sector witnessed the entry of private players like Reliance, Essar and Shell in the petroleum sector who between themselves have setup nearly 3000 ROs. However, the dominance of the OMCs continued unabated in the retail market. The Marketing Discipline Guidelines (MDG) which were formulated for the first time in 1981-82 helped the OMCs to maintain discipline in the operation of retail network and provide high customer service standards.
In recent times the Government as well as Industry has felt the need to review the MDG in view of the changing circumstances and market scenario. The need to set very high customer service benchmarks for OMCs and
for RO / SKO Dealerships of Public Sector Marketing Companies
Effective 8th January 2013
MARKETING DISCIPLINE GUIDELINES – 2012
RETAIL OUTLET DEALESHIP / SUPERIOR KEROSENE OIL DEALERSHIP
INTRODUCTION – The evolution of oil industry in India can be traced to the early 20 th century when the industry began its operations through Superior Kerosene Oil (SKO) dealerships. In due course of time the petroleum business prospered and expanded and by independence the industry had commenced marketing of Motor Spirit (MS) and High Speed Diesel (HSD). The network developed under private oil companies like Burmah Shell, Caltex and ESSO. In 1958, Indian Oil Corporation (IOC) was formed giving birth to the entry of the public sector in the petroleum business. Thereafter with the nationalization of Burmah Shell, Caltex and ESSO in the 1970s, the concept of public sector oil companies came into being and the petroleum business prospered witnessing substantial growth.
In 2001-02 the public sector oil marketing companies (OMCs) had a network around 16000 retail outlets (ROs), 9000 LPG distributorships and 6500 SKO dealerships. The network has seen tremendous expansion to nearly 41000 RO dealerships, 11100 LPG distributorships and 6600 SKO dealerships as on 01.01.2012. The deregulation of the petroleum sector witnessed the entry of private players like Reliance, Essar and Shell in the petroleum sector who between themselves have setup nearly 3000 ROs. However, the dominance of the OMCs continued unabated in the retail market. The Marketing Discipline Guidelines (MDG) which were formulated for the first time in 1981-82 helped the OMCs to maintain discipline in the operation of retail network and provide high customer service standards.
In recent times the Government as well as Industry has felt the need to review the MDG in view of the changing circumstances and market scenario. The need to set very high customer service benchmarks for OMCs and