Daily change in fuel prices from June 16

Daily change in fuel prices from June 16

To keep rates in sync with global trend

Daily change in fuel prices from June 16

Come June 16, consumers across the country will pay a different price daily for the purchase of petrol and diesel.

State-owned oil companies have decided to revise the price of fuel everyday in sync with international rates, a trend that is followed in most of the advanced markets.

“Daily price revisions of petrol and diesel will make the retail prices more reflective of the current market conditions, minimising volatility. Further, it will lead to increased transparency in the system. This will also enable the smoother flow of products from refinery/depots to retail outlets. Many developed countries are already revising the prices of petrol and diesel on a daily basis,” state-owned fuel retailer Indian Oil Corp said in a statement.

The move comes after a successful implementation of a pilot for daily revision in Udaipur, Jamshedpur, Puducherry, Chandigarh and Vishakhapatnam from May 1, IOC said.

State-owned oil firms — IOC, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd — together own more than 95% of the nearly 58,000 petrol pumps in the country.

At present, petrol and diesel prices are revised on the 1st and 16th of every month based on the average international price of fuel in the preceding fortnight and currency exchange rate.

The public sector oil companies will publish the prices of petrol and diesel in newspapers everyday for convenience, IOC said.

“State oil marketing companies are taking steps to establish an appropriate mechanism for conveying the prices to consumers every day, including publishing of the prices in newspapers on a daily basis, prominent display of prices at retail outlets and sending price-related data/SMS from the centralised locations, mobile apps, among others,” the statement read.
DH News Service
Dynamic pricing
*Daily price change practice also known as dynamic fuel pricing
*Pilot implementation of dynamic pricing in five cities suggested fuel got a bit cheaper
*Will reduce political pressure on oil companies, especially during elections
*To help oil companies forecast revenues and losses
*Consumers may not benefit as other taxes likeentry tax on crude, refinery processing charges,
VAT, excise remain