A

BUSINESS DISSERTATION

ON

“Automation at Fuel Retail Outlets”

Submitted to
SCHOOL OF PETROLEUM MANAGEMENT
PANDIT DEENDAYAL PETROLEUM UNIVERSITY
GANDHINAGAR

IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Dr. Tanushri Banerjee

Submitted by
Charmy Shah
[Batch: 2019-21, Roll No.: 20191042]

04, 2021
 DECLARATION

I, CHARMY SHAH, student of MBA Batch 2019-21, School of Petroleum Management, Pandit
Deendayal Petroleum University, Gandhinagar hereby declare that the Business Dissertation
entitled “Automation at Fuel Retail Outlets” is a result of my own research work and our
indebtedness to other work publications, references, if any, have been duly acknowledged. I shall
be solely responsible for any plagiarism or other irregularities, if noticed in the thesis.

I assert that the statements made and conclusions drawn are the outcome of my own research
work. I further declare that to the best of my knowledge and belief that the Business Dissertation
does not contain any part of any work which has been submitted for the award of any other
degree/diploma/certificate in this University or any other University in India or Abroad.

Place : Ahmedabad
Date : 27th March 2021 Charmy Shah

i
 PLAGIARISM DECLARATION

I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s
own. Dissertation has significant new work / knowledge as compared already published or is
under consideration to be published elsewhere. No sentence, equation, diagram, table, paragraph
or section has been copied verbatim from previous work unless it is placed under quotation marks
and duly referenced. I have used a recognized convention for citation and referencing. Each
significant contribution and quotation from the works of other people has been attributed, cited
and referenced
The thesis has been checked using <Turnitin> (copy of originality report attached) and found
within limits as per PDPU Plagiarism Policy and instructions issued from time to time.
I certify that this submission is my own work. I have not allowed and will not allow anyone to
copy this work with the intention of passing it off as his or her own work.

Place : Ahmedabad
Date : 27th March 2021 Charmy Shah

ii
TURNITIN Originality Report

iii
 CERTIFICATE

I certify that the work incorporated in this Business Dissertation titled “Automation at Fuel
Retail Outlets” submitted by Charmy Bhupendrabhai Shah was carried out by the student
under my supervision/guidance. To the best of my knowledge: (i) the student has not submitted
the same research work to any other institution for any degree/diploma, Fellowship or other
similar titles (ii) the Business Dissertation submitted is a record of original research work done
by the student during the period of study under my supervision, and (iii) the Business Dissertation
represents independent research work on the part of the student.

Place: Gandhinagar (Signature)

Date: 19/04/2021 Dr. Tanushri Banerjee

iv
 PREFACE

The petroleum industry is involved in the global processes of exploration, extraction, refining,
transporting (often with oil tankers and pipelines), and marketing petroleum products. The
largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is vital to
many industries, and is of importance to the maintenance of industrialized civilization itself,
and thus is critical concern to many nations. This industry is one of the most progressing
industries in India presently. This project is an effort to introduce technology (by means of
automation) in this Petroleum Industry. The objective of this project is to provide easy access
and save time of the company, the dealers and the customers in a petrol bunk. This project
helps in overcoming manual errors taking place in the retail outlet. All the operations are done
electronically where accurate measurements take place.

v
 ACKNOWLEDGEMENT

I would like to thank the Director, School of Petroleum Management, and the Head of School,
MBA (Energy and Infrastructure), for introducing a course that complements our basic studies
with practical knowledge. Next, I would be thankful to Dr. Tanushri Banerjee, who acted as
my guide in literal sense and without whom, the work that follows, wouldn’t have been
possible. And last but, certainly not the least, I would pay my acknowledgements to the
Placement Cell and all the Faculty members.

I perceive this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on
improvement, in order to attain desired career objectives. Hope to continue cooperation with
all of you in the future.

Charmy Shah
(20191042)

Date: 27/03/2021
Place: Ahmadabad

vi
 TABLE OF CONTENTS

Content Page No.

Declaration i

Plagiarism declaration ii

Certificate iv

Preface v

Acknowledgement vi

List of figures and tables ix

List of tables ix

List of symbols, abbreviations x

Abstract / executive summery xi

Chapter 1 - Introduction and theoretical framework 1

1.1 Oil & Gas Industry 2

1.2 Brief on Petroleum retail outlets in India 4
1.3 Brief on Retail Outlet Operations 5
1.4 Product Flow 7
Chapter 2 - Literature review and research gap 8

2.1 Various Systems used by Retail Outlets 9

2.2 Challenges faced by Retail Outlets 9
2.3 Research Gap 10
Chapter 3 - Research objectives, Methodology and data collection 11

3.1 Research Objectives 12

3.2 Research Methodology 12
3.3 Data Collection 12
Chapter 4 - Analysis and Interpretations 13

4.1 Need of Automation at fuel retail outlets 14

4.2 RFID Technology 14
4.3 Cashless Payment Options 16
4.4 Tools and Software used by Retailers 17
4.5 Current Status of Automated fuel retail outlets in India 20
Chapter 5 - Results and Findings 22

5.1 Outlook for digital opportunities in Fuel retail outlets 23

5.2 Benefits of Smart Fuel Stations 23
vii
Conclusion 24

References 26

viii
 LIST OF FIGURES

Figure Figure Name Page No.

No.
Figure 1.1 Oil Production and Consumption by region 2
Figure 1.2 Oil Consumption per capita 3
Figure 1.3 Natural Gas Production and Consumption by region 3
Figure 1.4 Natural Gas Consumption per capita 4
Figure 1.5 Product Flow 7
Figure 4.1 Fastlane Steps 15
Figure 4.2 Cashless Payment Solutions 16
Figure 4.3 System Architecture 17
Figure 4.4 Attendant Tagging Solution 19

LIST OF TABLES

Table No. Table Name Page No.

Table 4.1 List of Automated Retail outlets in India 21

ix
 LIST OF SYMBOLS, ABBREVIATIONS

RO: Retail Outlet

OMC: Oil Marketing Company
HPCL: Hindustan Petroleum Corporation Limited
IOCL: Indian Oil Corporation Limited
BPCL: Bharat Petroleum Corporation Limited
HSD: High Speed Diesel
EBIT: Earnings before Interest and Tax

x
 ABSTRACT / EXECUTIVE SUMMERY

Oil and gas companies worldwide understand the potential of digitization for their downstream operations.
Yet they often face challenges in launching and executing digitization projects in their core businesses that
would lead to a measurable return on investment. Given the fast pace of technological innovation and the
complexity of a downstream business, refiners and petrochemicals players can capture the full value of
digitization only if they apply a structured, systematic approach. Based on my experience with oil and gas
companies, this approach consists of three specific areas.

First, companies need to prioritize their digitization efforts by linking them to the functions with the maximum
value. This includes emphasizing operations and maintenance excellence; connecting the supply chain
digitally; and adopting smart health, safety, security, and environment (HSSE) and fire services.

Second, companies need to build foundational capabilities in areas such as data and analytics, technology
architecture, talent and culture, and cybersecurity. Developing these capabilities will prepare the organization
for ongoing digital transformation, regardless of changes to the underlying technology.

Third, rather than the traditional approach to IT implementation — large-scale programs that take years to
complete — downstream oil and gas companies should apply a more agile approach. Specifically, they need
to assess their digital maturity across selected lines of business, pilot a few new technologies linked to business
priorities, and scale up the initiatives that have proven their applicability and delivered associated benefits.

Doing things right will lead to a technology-driven transformation in how downstream oil and gas businesses
operate.

xi
CHAPTER 1: Introduction and Theoretical Framework

1
1.1 Oil & Gas Industry

The oil and gas industry is one of the largest sectors in the world in terms of dollar value, generating an
estimated $3.3 trillion in revenue annually. Oil and natural gas are major industries in the energy market
and play an influential role in the global economy as the world's primary fuel sources. The processes and
systems involved in producing and distributing oil and gas are highly complex, capital-intensive, and
require state-of-the-art technology.
The industry is often divided into three segments:

 upstream, the business of oil and gas exploration and production;

 midstream, transportation and storage; and
 downstream, which includes refining and marketing.

Figure 1.1: Oil Production and Consumption by region

2
 Figure 1.2: Oil Consumption per capita

Figure 1.3: Natural Gas Production and Consumption by region

3
 Figure 1.4: Natural Gas Consumption per capita

1.2 Brief on Petroleum retail outlets in India

 The Ministry of Petroleum & Natural Gas in India is concerned with exploration and production of oil and
natural gas (including import of liquefied Natural Gas), refining, distribution & marketing, import, export
and conservation of petroleum products. Their public sector undertakings are as given below:

 Bharat Petroleum Corporation Ltd,Biecco Lawrie Co. Ltd.,LBongaigaon Refinery and Petro-Chemicals
Ltd., Chennai Petroleum Corporation Limited,Cochin Refineries Ltd.,Engineers India Ltd LGas Authority
of India Ltd,Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, Numaligarh Refinery
Ltd,Oillndia Ltd, Oil & Natural Gas Corporation Ltd.

 After liberalization of petroleum retailing in India in the year 2002 petroleum retailing has seen
unpresidented competition within the public sector petroleum marketing companies as well as the new
private entrance by Shell, Reliance petroleum and ESSAR.

4
1.3 Brief on Retail Outlet Operations

 INFRASTRUCTURE REQUIREMENTS:
1. Petroleum storage facility.
2. Dispensing Facility.
3. Product pipelines
4. Sales Facility
5. Fore court Driveway.
6. Canopy over fore Court.
7. Illumination / signage's.
8. Generator, invertors, compressor, real wages etc.
9. Quality control and automation equipment.

 VARIOUS FUNCTIONS:

 Petroleum storage facility:

Petroleum is stored in mild steel cylindrical underground storage tank fabricated in accordance with
Indian standards (1510987 1992). Capacities standardised by Indian Oil are 10kl,20kl, sOkl and 70kl.
Most common being lOki and 20kl.1skl tanks which were in use has been discontinued.

 Dispensing facility:
Single, Dual, MPD, Non space. Also heavy duty for hsd & standard duty for ms1 hp motor/1" nozzle
for hsd & 3/4" nozzle for ms. Mechanical, electronic, preset option, printer option DU's available now.
Major suppliers- I&t, midco, aplab, dresser wayne, tokheim, gilbarco, tatsuno.

 Product Pipeline:
Conventionally mild steel threaded pipelines confirming to IS1239 were used. In recent past HDPE
(High Density Poly Ethylene) pipes with carbon coating inside has been under use in 10Cl for product
pipelines. These pipelines being anti corrosive with comparatively low frictional losses will replace
the conventional mine steel pipelines.

 Fore court Driveway/Canopy:

It's a cement concrete driveway. Driveway is laid with cement concrete paver blocks over consolidated
and stabilized base culvert and drainage area provided. Conduits are provided for power and data cables
for pipelining with inspection chambers. Canopy is provided for protection of customers and four
chords from natural elements. Generally fabricated of structural steel. Provided with Roofing, for
selling, co-operate lighting etc.

5
 IIluminationl signage's:
Illumination is provided by the aluminium lamps.

 Generator, inverter:
Generators and inverters are suitably provided for power backup generally up to 15 to 25kw diesel
generators are provided with acoustic control as per central pollution control norms.

 Receipt & storage:

On arrival of tank truck{tt) collect the invoice & give 10-15 min settling time. Unloading only to be
done in presence of dealer/ authorized manager strictly. Check the locks & if okay open the covers and
take dips. If dip is correct take sample from each compartment & note density.tt sample to taken. If
density "difference within 3 points product can be unloaded. Allege of tank should be adequate and
double check whether product is connected to right tank fills up. Earthing & bonding to be done & fire
extinguisher to be kept nearby. If separate decanting point not available, fuelling in nearby islands to
be stopped. After unloading remaining product to be drained out through manifold. IT to be
locked & send with transporter copy of invoice.

 Tank truck sampling:

Ms/xp two 1 Itr samples to be taken & hsd/xm 1 Itr sample to be taken in aluminium containers
provided by company. Calibrated hydrometer, thermometer, glass jar to be available. Sample
containers to be properly sealed using plastic seals given by company & sealing wire, labelled after
getting drivers signature & kept in safe custody. If driver is willing to pay, one set of above samples to
be given to him. Last two loads of each product to be available in the room Fine for not keeping the
above samples is Rs 50000 and more importantly if any sample taken from your ro fails, if adulteration
was done by transporter there is no way to prove it without these samples.

 Documentation:
Daily sales record (dsr), density register to be updated daily by 10 am. Before start of day shift tank
dips, water dip, meter readings, density, 5 Itr delivery noted. Xtracare ro's as well as >100 kl ro's have
separate set of records to updated daily. separate files to be maintained for inspection reports, mobile
lab reports, marker- test results, invoice, tt bills, lubricant purchases as well as communication from
i.o.c & government agencies. Explosive license, legal metrology stamping certificates

 Quality & Quantity Assurance:

Q&Q means delivery correct quality & correct quantity.
Quality & quantity is the most important factor in an RO as Without q&q even good customer service
or any other strategy will not suffice and definitely sales will suffer. Without q&q, ro will come under
mdg guidelines & its future itself is a question mark. To ensure correct quantity check daily 5 Itr
6
 delivery of each nozzle and follow up for regular maintenance. To ensure quality right from receipt to
final nozzle deliveries do not allow any contamination. Even any water presence in tank is to be
removed. Keep all tank openings under lock & don't leave tank/du keys unattended especially in night.
Daily monitor stock/cash.

 Inspections:
Inspections are carried out by local sales officer, other i.o.c officials, anti-adulteration cell, vigilance,
mobile lab, marker testing agencies. Civil supplies & police senior officials also have powers to inspect
ro's Deficiencies in housekeeping/service can also result in penalties.

1.4 Product Flow

––

Figure 1.5: Product Flow

7
CHAPTER 2: Literature Review and Research Gap

8
2.1 Various Systems used by Retail Outlets

1. MANUAL CONTROL- In this, the control and automation are done by Manual Operation.
Drawback: Human Errors subsequently affects the quality of end product. Hard Wired Logic Control. In
this, Contractors and Relays together with timer and counters were used in achieving desired level of
Automation. Bulky and complex wiring, involves lot of rework to implement changes in control logic,
Work can be started only when it is fully defined which leads to longer project time.

2. ELECTRONICS CONTROL WITH LOGIC GATES: In this, Contractors and Relays together with
tillers and counters were replaced with logic gates and electronics timer in control circuit.
Advantage: - Reduced spare requirement, energy saving, less maintenance and hence greater reliability.
Drawback: - Implementation of changes in the control logic as well as reducing project lead-time was
not possible.

3. PROGRAMMABLE LOGIC CONTROL: In this, instead of achieving desired control and

automation through physical wiring of control devices, it achieving through program say software.
Advantage: -Energy Saving, Reduced Space, Modular replacement, Easy troubleshooting, Error
Diagnostics programmer.
Drawback: -Expensive, It requires Third parties license, Bulky to carry, Expert person required. Above
processes are used for automation from several decades as there technologies were developed. As each of
them having some drawback to overcome them we are replacing them with other technology.

2.2 Challenges faced by Retail Outlets

 Retain / increase market share

 Optimize profitability at point of sale by reducing operation cost throughout the supply chain

 Optimize gas station network

 Manage and reinforce customer perceptions for right quality and quantity

 Improve customer experience at the forecourt. Establish supplementary revenue stream using the same
infrastructure.

 Retain and gain ‘loyal customers’ through brand building and promotional campaigns

9
2.3 Research Gap

 Several innovative interventions have been brought about in the Indian fuel retailing sector but fuel
retailing in India lags some global best practices. Automation, Site building, Network Planning are some
examples of gap between India and global best practices. So, I have decided to study different technologies
and tools used for Automation at Fuel Retail outlets.

10
CHAPTER 3: Research objectives, Methodology and data collection

11
3.1 Research Objectives

The Objectives of this research are:

1. To Examine the challenges faced by Fuel Retailing Industry
2. To identify the Need of Automation
3. To Understand the technologies used for making smart Retail Outlets
4. To explore the Benefits of Automation

3.2 Research Methodology

 To do the research, I will use descriptive research methodology. Majorly I will use secondary data
extracted from published sources, research databases, government reports, industry reports, published
interviews of CEOs of downstream organizations or business analysts etc. First of all, research will focus
on need of automation at fuel retail outlets. Identify different tools and technologies for automation will
be the next criteria in research chronology. Last section of research will focus on benefits by smart fuel
retail outlets.

3.3 Data Collection

 Secondary data will be collected from relevant open sources, like research paper and various relevant
reports available at public platforms.

12
CHAPTER 4: Analysis and Interpretations

13
4.1 Need of Automation at fuel retail outlets

 Petrol pump automation is an initiative of Ministry of Petroleum & Natural gas. Under it all OMCs (Oil
marketing companies - IOCL, BPCL, HPCL) are instructed to automate petrol pumps. Objective of
automation is to ensure that customer get right quality, right quantity, no adulteration should happen at
petrol pump.

 Right quality can be ensured by maintaining the right density of petrol/diesel. To measure product
density constantly, a device is inserted inside the underground storage tank. It gives a reading of
product density in the display unit at any time. Generally, when company officials visit a petrol pump,
they use this display unit to check the density.

 Right Quantity - The machines which dispense fuel are controlled by the automation, a sales person
can’t use it manually. All dispensing will be automated where ordered quantity by the customer, will
be entered inside the machine, the dispensing of fuel will stop once the entire quantity is delivered
inside fuel tank.

 Card Transaction - With automation every customer can use their cards, bill electronics bill receipt
can be given to each customer.

 Transaction Detail - Automation provides complete data about number transaction, timing of
transactions. It can be used to figure peak demands timings; accordingly, more sales people can be
deployed to handle more number of vehicles.

 Customer Trust - Automation helps build trust among the customers. At petrol pump trust is the
biggest factor to grow sales. Most of the customer will come from nearby locality, if they generate
strong word of mouth then more customers will visit.

 Automation in short means no need to measure density, temperature manually inside the tank. No need to
manually fill fuel in vehicle. Enter the quantity with the help of key pad, machine will automatically stop
once quantity is dispensed. Electronic billing, receipts etc. to be provided to customers.

4.2 RFID Technology

 Fuel dispensing in India is set to go hi-tech. Hindustan Petroleum Corporation Ltd (HPCL) and Fastlane,
an initiative of retail fuel payment and automation company AGS Transact Technologies, have inked a
strategic partnership.

14
 Called HP-Fastlane, the new-age solution automatic vehicle identification (AVI) using RFID technology
to deliver cashless payment solutions and bring efficacy in fuel management.

 How Fastlane works?

Figure 4.1: Fastlane Steps

 Features and Benefits of Fastlane:

1. No waiting for Card/Receipt:
Leave the petrol pump as soon as fueling is done.
2. Secure Transaction:
Complete transparency keeps the money in your fastlane wallet safe.

15
 3. Assured Quantity:
Meter always starts from zero.
4. No interaction with Attendant:
Present fuel instructions on Fastlane App.
5. No need to accompany Driver while fueling:
Driver can get the car fuelled without cash or carrying your card.
6. No payment issues
Card not accpted/declined and other payment need not be a worry.
7. Cashback unlimited
Unlimited instant cashback on every fuel transaction.
8. E-Statement & E-Invoice
Digital invoice available to help with tax claims/Reimbursement.
9. Transaction History
Keep track of your fuel expenses.

4.3 Cashless Payment Options

 Cashless transactions and digital payments have become more prominent than ever. Its top-notch
convenience, speed, and various other benefits have attracted many users and merchants across the industry
verticals.
 Fuel retail is one such industry that has witnessed massive impacts of cashless payments in recent years.

Figure 4.2: Cashless Payment Options

16
 Biometric authentication along with tokenization will play a critical role in enhancing the security of the
fuel payments. With increase in the usage of mobile payments has also lead to the increase in the cases of
cyber frauds. This is why many card issuing companies are embracing technologies like tokenization.

 Tokenization along with end-to-end encryption can improve the data security of payments by several
notches. Fuel cards will continue to adopt tokenization as mobile-based payments are expected to surge in
the coming years.

 Recently Shell and ExxonMobil, which are two of the biggest players in the fuel industry, launched their
mobile apps that allow customers to pay for their fuel straight from their car.

 NFC is another contactless technology that is used in the fuel payment system. Many a time, NFC is also
referred as the touch and go technology. It’s because all a user has to do is put his NFC card in front of the
reader to make payments.

4.4 Tools and Software used by Retailers

Figure 4.3: System Architecture

 Forecourt Controller (FCC):

 Forecourt Controller is the Heart of Automation System
 FCC (Forecourt Controller) is installed inside the Sales Room
 FCC works as a Data Acquisition System on real time basis

17
  Forecourt Controller is the unit, which provides the interface with following devices and
controls/monitor their operation,
 The interfaces are provided for: – Dispensing Units (MS & HSD DUs)

– Auto Tank Gauging System (ATG)

– Thermal Receipt Printing Terminals (TP)

– Uninterrupted Power Supply (UPS)

– Head Office System (HOS)

– Control Central Application (CCA)

– Fleet POS (FPOS)

 ATG Console (Automatic Tank Gauging)

 ATG Console is Installed in Sales Room

 Main Function of ATG system is to collect Inventory Data from Tanks & pass it to FCC
 The ATG system includes Level, Temperature, Product /Water interface detectors connected to the
retail station. The probe uses Magneto restrictive principle for measuring the levels.
 There are two Major components in ATG System:
 ATG Console
 ATG Probes along with Floats
 ATG Probes along with Fuel & water Float are installed in Underground Fuel Tanks
 ATG Probes reports Inventory Data, Alarms & delivery details to ATG console

 Thermal Receipt Printing (TP)

 Thermal Printers are Installed on Forecourt Near Dispenser Islands

 Prints Transaction Receipt
 Capturing Customer Details
 Dispenser Testing
 Transaction Marking

 Uninterrupted Power Supply (UPS)

 UPS is Installed in Sales Room or Close to Sales Room with Batteries

 Provides Power Backup to Automation Equipment's in case of Power Failure

18
 Back Office System (BOS)

 Through Back Office System connected to FCC, all the operations of retail outlet can be operated

 Outdoor Payment Terminal

 Outdoor Payment Terminals (OPTs) are unattended payment terminals which offer self-service
transaction options to customers, through means of contact or contactless payment methods, in a secure
and fast manner.
 For end-user industries that see large number of transactions daily (such as petrol stations), having a
self-service payment terminal enables customers to avail services and conveniently pay without the
need of additional staff.
 Self-service outdoor payment terminals facilitate better security, efficiency, and provide flexibility to
transaction processes. Using self-service terminals can lower operating costs by eliminating any
personnel required for transactions, provides consistent customer service, and increases availability of
service 24/7.
 Outdoor payment terminals integrate with management systems for better control and to oversee the
transaction processes.

 Attendant Tagging Solution

 A system which allows tracking and reporting of pump transactions per attendant.
 A contactless tag reader is installed on each pump filling position.
 Each attendant is issued with a unique “attendant tag” which is presented at the pump before each
transaction.
 The tag used is recorded alongside the pump transaction, ensuring that station managers know exactly
how much cash and other payments each attendant is responsible for.
 Attendant Tagging also ensures that fuel cannot be dispensed without an attendant present.

Figure 4.4: Attendant Tagging Solution

19
 Fleet Management System

 Fleet Management System provides a unique way to handle Fleets at Gas Station:

 VIU (Vehicle Information Unit) fitted in each fleet vehicle is hooked up to the Odometer and with fuel
cap. Once connected and initialized, the VIU will keep correct log of the miles travelled and also details
on the fuel type required for vehicle, registration number, etc. Whenever a fleet vehicle reaches gas
station for re-fuelling; the automation system will communicate with the VIU to upload odometer
reading, type of fuel permissible, etc. and will grant automated authorization. Authorization will be
granted in line with limits and restrictions provided for each vehicle. During re-fuelling operation, the
dispensing goes on till the time nozzle is inserted in the fuel tank and communication between VIU
antenna and nozzle is established, which ensure that 100% of the fuel dispensed is filled up in the
vehicle authorized by the system.

 Further, since the odometer reading of each vehicle is uploaded during the re-fuelling operation, fuel
consumption pattern of each group of vehicles with respect to time and distance can be calculated and
provided to fleet owner as report.

4.5 Current Status of Automated fuel retail outlets in India

 Payment Automation: BPCL

 Feb 19, 2016: Innoviti Payment Solutions and Orpak formed a partnership to drive India’s largest
payment automation project at BPCL. Under this project 6,500 outlets of BPCL (almost 50% of
BPCL’s retail base) will be automated using Innoviti’s payments platform uniPAY, closely integrated
with Orpak’s fuel automation system
– The partnership will provide an innovative solution to BPCL using Innoviti’s uniPAY payments
platform. This helps provide an end-to-end integration for BPCL, from fueling to payment cycle.
– The improvement in attendant productivity and an end-to-end integration provides BPCL with a full
control on the outlet level operations for better control
– In addition, the platform also allows BPCL to seamlessly add new payment options and provides
them with customer insights, thereby increasing the overall sales

 Paytm Payment: IOCL & HPCL

 IOCL and HPCL tied-up with mobile commerce platform, Paytm, to allow payments through the
Paytm wallet at petrol pumps in February and May, 2016 respectively. Payments through wallet will
not only enhance convenience to customers but will also bring in more operational efficiency, thereby
reducing queues at these pumps.

20
 Total number of Automated Retail Outlets by different OMCs are presented in the following table:

OMC Number of Automated Fuel Retail Outlets

BPCL 13,648
IOCL 24,860
HPCL 16,476

Table 4.1: List of Automated Retail outlets in India

21
CHAPTER 5: Results and Findings

22
5.1 Outlook for digital opportunities in Fuel retail outlets

 Players must embark on a digital transformation in order to create sustainable competitive advantage in oil
retail. There are four primary ways in which retailers can use digital to revitalize the customer journey and
bring lasting impact:
 Mobile apps can help to increase the number of transactions, encouraging customers to visit specific gas
stations and establishing an interface for loyalty programs. Mobile apps have the potential to increase
retail EBIT by 1% to 2%.
 Digital solutions can help to open new revenue streams. Targeted advertising, promotions, and offerings
from retail partners have the potential to bring in additional revenues of $15 to $30 per customer per year.
 Improve the margin of transactions by incentivizing customers through mobile technology, loyalty
programs, and other digital offerings to pay by debit card—thereby reducing credit card fees. Such
incentives can shift 5% to 15% of customers away from using their credit cards.
 Use big data and analytics to increase revenue per customer. Targeted promotions, such as cross-selling
convenience store offerings and car washes to fuel consumers, can lead to an increase in retail EBIT of
2% to 4%.

5.2 Benefits of Smart Fuel Stations

 Automation of pumps will give oil companies accurate data on sales and control over any adulteration,
which might happen at the retail end. These benefits will also flow to the customer.
 The automation covers various aspects of the outlets, including level gauges in underground tanks and
gauges to check quality parameters of the fuel. Every time fuel is dispensed, a bill, giving details of the
date, time, quantity of the purchase, the pump and the attendant who delivered the product, will be
generated automatically.
 At petrol pump stations, the workforce has a lot of tasks to manage including invoicing. With so much
to take care of, there is always some room for error when it comes to manual calculations.
Additionally, human error could occur due to the lack of expertise or technical knowledge. However,
all these issues are overruled once a petrol pump management software comes into the picture. The
software helps in generating invoices, challan information, and maintaining the sale/purchase
register.
 Managing inventory for retail items on the shelves is an extremely involved and time-consuming process
when handled manually. However, with a commodity such as fuel, it would be almost impossible to track
without some automation in place. Operators will gain several direct benefits through the use of integrated
systems that track and report purchase data from the pumps and filter it back into the point of sale and
back of house systems.
 Automation provides complete transparency to the customers as well as retailers.
23
CHAPTER 6: Conclusion

24
 With an increasingly diverse energy market, catering to almost all individuals in one way or other, the
industry is facing a shortage in skilled labor. The nature of product being hazardous, and extremely
dangerous, automation of operations will be a key factor for sustainable growth in the Oil and Gas industry.
 The Oil & Gas industry is also customer centric, and the retail outlets are spread across the length and
breadth of the country. The retail outlets, cater to lakhs of customers on a daily basis, and ensuring that the
customers get product of the right Quantity & Quality, is of paramount importance to the organization.
Keeping the aspect of customer satisfaction in mind, OMCs are implementing Automation at their retails
outlets in a very aggressive manner.
 Through Automation the work will be more efficient, systematic, will reduce time and cost effective in the
long run, error free, process will be optimized, no dependency on manual work force.
 The main objective of Retail Automation is to provide correct quality and quantity to customers with
Customer Relationship Management through confidence building by eliminating manual intervention,
increasing the speed of transactions & operations and direct interaction with the customer.

25
 References

1. Fuel Commercialization. (2021). Retrieved 17 April 2021, from

https://www.bcg.com/industries/energy/oil-gas/strategies-in-fuel-commercialization

2. Taking Automation to Petrol Pumps. (2021). Retrieved 17 April 2021, from

https://www.automationworld.com/products/control/news/13301623/taking-automation-to-petrol-
pumps

3. Automation in Petroleum Retailing. (2021). Retrieved 17 April 2021, from http://old.aia-

india.org/index.php?option=com_multicategories&view=article&id=242:automation-in-petroleum-
retailing&catid=102:oil-and-gas&Itemid=105

4. Retrieved 17 April 2021, from https://www.agsindia.com/fuel-retail-automation.aspx

5. Retrieved 17 April 2021, from https://www.agsfastlane.com/

6. Gundaniya, N., & Gundaniya, N. (2021). How cashless fuel payment is dominating the fuel retail
industry. Retrieved 17 April 2021, from https://www.digipay.guru/blog/cashless-payment-solution-
for-fuel-retail-industry/

7. (2021). Retrieved 17 April 2021, from

http://www.ijstm.com/images/short_pdf/1492695768_ijstm_129.pdf

8. (2021). Retrieved 17 April 2021, from

http://ficci.in/spdocument/20806/Special%20Track%20on%20Fuel%20Retailing.pdf

9. BPCL: Fuel Services & Stations | Natural Gas |Bharatgas (LPG). (2021). Retrieved 17 April 2021,
from https://www.bharatpetroleum.com/our-businesses/fuels-and-services/fuel-station.aspx

10. (2021). Retrieved 17 April 2021, from https://iocl.com/download/IndianOil-Annual-Report-2019-

20.pdf

11. (2021). Retrieved 17 April 2021, from

https://www.hindustanpetroleum.com/documents/pdf/HPCL%20Annual%20Report%202019-
2020.pdf
26
12. (2021). Retrieved 17 April 2021, from https://www.bp.com/content/dam/bp/business-
sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2020-full-
report.pdf

13. Outdoor Payment Terminal (OPT) System Market Size, Share, Growth, Trends, Forecast 2018 - 2026.
(2021). Retrieved 17 April 2021, from https://www.transparencymarketresearch.com/outdoor-
payment-terminal-system-
market.html#:~:text=Outdoor%20Payment%20Terminals%20(OPTs)%20are,a%20secure%20and%2
0fast%20manner.

14. Contactless Handheld Fueling Tags. (2021). Retrieved 17 April 2021, from
https://www.otipetrosmart.com/products/easy-fuel-plus/handheld-
tag/#:~:text=What%20is%20Attendant%20Tagging%3F,of%20pump%20transactions%20per%20att
endant.&text=The%20tag%20used%20is%20recorded,each%20attendant%20is%20responsible%20f
or.

15. Benefits of Automated Fuel Management Systems. (2021). Retrieved 17 April 2021, from
https://success-systems.com/benefits-of-automated-fuel-management-systems/

27