Petrol and diesel prices will change every day across the country, in sync with international rates, much like it happens in most advanced markets.Following the success of a pilot project in five cities, dynamic retail pricing of fuel will start from June 16.
State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own more than 95% of nearly the 58,000 petrol pumps in the country, launched a pilot for daily price revision in five cities from May 1.
State fuel retailers currently revise rates on the 1st and 16th of every month based on average international price of fuel in the preceding fortnight and currency exchange rate.
“With a positive feedback on the pilot project, the government has decided to allow daily price revision of petrol and diesel,” said a state-owned fuel retailer.
Instead of using fortnightly average, pump rates will reflect daily movement in international oil prices and rupee- US dollar fluctuations. The state and central levies will be added to this price.
While petrol price was freed from government control in June 2010, diesel was deregulated in October 2014. Technically, oil companies have freedom to revise rates but often they have been guided by political considerations.
