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Shell aims to be No. 2 in 2011

https://www.chemnet.com   Aug 10,2010
The Shell Company of Thailand expects its retail oil sales will increase by 14% next year, catapulting it to the second largest with a market share of 15%, according to Pissawan Achanapornkul, chairperson of the company.


Of all types of fuel sold at 16 billion litres per year, Shell now ranks fourth, with a market share of 13%, after market leader PTT with 32%, Esso (15%) and Caltex, according to the Department of Energy Business (DOEB).


Shell would need to sell 2.62 billion litres in total in 2011 from 2.3 billion last year in order to share the second ranking with Esso.


Mrs Pissawan said the strategy to reach its goal was to introduce new formulas of petroleum products including petrol, diesel and lubricant oil, which it has been aggressively marketing over the past several years.


The latest products are a new formula of ethanol-based petrol, gasohol and biodiesel invented by its research and development department. The new oil products claim to improve the efficiency of car engines, making them consume 1-2% less fuel than normal products.


"The new oil formula is designed for more efficient ignition and combustion of car engines. We also want to add value to the oil products," said Mrs Pissawan.


She said the company unofficially launched the new products to test the market in mid-July. After getting a good response, it is ready to expand the products' availability in all of its 573 petrol stations nationwide.


The products carry the same prices as normal gasohol and biodiesel even though they incurred higher research costs.


In March, the company launched its V Power series of premium-grade gasohol. The products claim to maximise engine power and have been well received despite costing two baht a litre more than normal gasohol.


V Power is the fruit of co-development between Shell and Ferrari.


In the second half of this year, the company will also spend 200 million baht to renovate 50 service stations nationwide for a more modern image.


She said that in addition to Ferrari, Shell has jointly developed the quality of oil products with major automotive firms such as Audi, Nissan and Isuzu and constantly launched marketing campaigns. This has set it apart from other multinational oil companies, whose activities are focused on exploration and production, making them relatively low-profile.


"Although they [other oil companies] are focusing on upstream activities, we prefer to commit to improving oil product quality," said Mrs Pissawan.
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