Fuel delivery startups seem to be the new deal in the market. Oil marketing companies (OMCs) have invited expressions of interest (EoIs) for the home delivery of fuels. Now, the fuel delivery startups can become official resellers, by getting registered as Fuel Entrepreneurs (FuelEnts). Many startups, such as FuelBuddy, MyPetrolPump, Humsafar, Pepfuels etc. were already facilitating OMCs such as HPCL (Hindustan Petroleum Corporation Ltd.) and IOC (Indian Oil Corporation Ltd.) and some others in the delivery of fuel. These startups can now officially sell to the customers, along with their name on the invoice.

The Ministry of Petroleum and Natural Gas, in 2017, first began contemplating the legislation of home delivery of HSD (High Speed Diesel). Thereafter, the Petroleum Explosives Safety Organisation (PESO) was brought in, so as to draft guidelines for the process.

According to Aditya Singh, COO and Co-Founder of FuelBuddy, they were earlier working as partners with OMCs in delivering fuel. Now, they can procure from the OMCs and sell officially to customers directly, with their name on the invoice. With the overall diesel market opening up, it'll prove to be a great opportunity for startups like his. They will be able to provide contactless delivery to customers, through their IOT technology.

This decision is expected to provide a huge boost to the new but up-and-coming fuel delivery industry. The market is expected to be approximately Rs. 1,500-2,000 crore, in the upcoming 1-1.5 years. There are also expectations as to a further rise in demand for diesel, which will turn out to be critical for the fuel delivery segment going ahead. In the single year of FY20, Indian consumption of diesel stood at 82.6 million tonnes.

The primary benefit of the system will be for people who don't wish to visit fuel stations, especially given the current circumstances of the pandemic spreading. Therefore, the legally reselling of fuel being allowed will be an important move by the OMCs in further nurturing the sector.

However, there has also been a rush to register new startups as FuelEnts, and it's definitely not an easy task to verify each and every company, given that, in such a business, it takes a company to have adequate experience and sound technological set-up, so as to reach the selection standards.