Japanese oil companies are startingcampaigns to market 100 octane gasoline to meet growing
domestic demand for higher quality motor fuel, oil sources
said.
    Ten companies plan to offer the unleaded gasoline this
summer, starting with &lt;Idemitsu Kosan Co Ltd> on June 20.
    Showa Shell Sekiyu KK &lt;SHOL.T> introduced its Formula Shell
98 octane gasoline to the Japanese market in January this year.
    Formula Shell has achieved strong sales in Japan despite a
higher price than regular octane gasoline, which has prompted
other oil firms to offer a rival product, the sources said.
    "We have received a good response from consumers of Formula
Shell in terms of a smoother ride and effective fuel
consumption," Showa Shell said.
    Shell's product sells for 145 yen per litre, 15 yen higher
than regular gasoline, and has already achieved a 38 pct share
of Japan's high octane gasoline market, it said.
    High octane gasoline accounts for 25 pct of Shell's total
gasoline sales in Japan, it added.
    Idemitsu said it hopes to raise high octane sales to 20 pct
of its total gasoline sales from about seven pct, immediately
after the launch of its Idemitsu 100.
    Nippon Oil Co Ltd &lt;NPOL.T> said it will launch its 100
octane gasoline on July 1, aiming for an increase in high
octane sales to 20 pct from six pct of its total gasoline
sales.
    The rush to compete for high octane gasoline market share
has been spurred by expectations that the government will lift
gasoline production quotas and restrictions on gasoline station
construction in the next two to three years.
    "Major oil companies are trying to boost their gasoline
sales network ahead of the proposed lifting of gasoline
production quotas," an official at a major oil company said.
    An advisory panel to the Ministry of International Trade
and Industry (MITI) recommended this week that the government
press ahead with deregulation of the oil industry, including
the lifting of gasoline production quotas, to help oil
companies increase their international competitiveness.
    Japan's three biggest gasoline marketers, Nippon Oil,
Idemitsu and Showa Shell, suffered supply shortages under the
production quota guideline in fiscal 1986, ended last March.
    Domestic gasoline demand during the year was up 2.5 pct
from the previous year, according to a MITI report.
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