V-Power for WA

Shell gets 98 RON premium fuel product to market in WA

As of this week, Shell's V-Power 98 RON PULP goes on sale in Western Australia. For easterners, who've had it on tap for years, it's hard to believe it's taken this long. Especially in the state, now home to Australia's richest individual in Gina Rinehart, where everyone's finding gold in them thar hills and plenty of them are turning it into expensive road ware.

VFACTS figures show a 34 per cent rise in sales of $200K-plus sports cars in WA since 2005, standing in stark contrast to a seven per cent drop nationally over the same time.

"That's why it's so timely for us," Shell national retail manager Margaret Kennedy told motoring.com.au.

"It gives us access to a product category that's doubled in sales here over the last two years."

With that spike capping 20 per cent growth in WA 95/98 RON premium fuel sales over the last four years, it was clear the company had found critical mass to overcome the obstacles hindering its introduction for more than a decade past its introduction down the eastern seaboard states as Optimax in 1999.

Shell spokesman Paul Zennaro attributes its arrival in WA to an increase not just in the number of cars needing 95/98 RON premium fuel, but the number of drivers trading up from 91 RON to 98 for the benefits it delivers normal vehicles (BP and Caltex have sold their 98 RON products – Ultimate and Vortex respectively – in WA for some time).

"There's clearly been considerable growth among customers who understand the benefits of running it in their normal vehicles – it's not just for engines that demand it specifically," said Zennaro.

Longer term, Zennaro says the company expects a continuing the rise in sales of cars requiring PULP.

"Currently you're looking at one-in-four. I think we'll see that increase as more makers will likely recommend it for their product," Zennaro surmised.

Why the delay in getting its high-margin product on sale in such a crucial market?

The company puts it down to supply issues, mainly associated with installing the infrastructure it needs firstly to store the 98 RON fuel and to blend it with the proprietary herbs and spices that turn mere petrol into Shell V-Power.

The company had to install the gantry infrastructure at its North Fremantle and Kwinana plants, among others, because that's where the mix-in takes place (i.e. at the point where the fuel is pumped into the transport tanker).

"We've made a lot of improvements to our supply chain that makes it possible now where it wasn't before," said Zennaro.

From this week, V-Power will be available at 40 Shell Coles Express petrol stations throughout Perth's metro area, with more to come across the
state. In keeping with the rest of the country, it sells for 15c per litre premium over its 91 RON counterpart.

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