Daily price revision of petrol and diesel

As part of the pilot project, residents of Puducherry, Vizag, Udaipur, Jamshedpur, and Chandigarh will see a daily revision in the prices of petrol and diesel. The move is likely to be extended to other parts of the country depending on the response this pilot garners in these cities.

The participants in this pilot are the state-owned fuel retailers such as Indian Oil Corp (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum Corporation (HPCL). Interestingly, the three retailers own over 95% of the total (58,000) petrol pumps in the country.

What prompts the fuel retailers to revise the prices? The answer is the average international price of fuel. The retailers usually revised rates every fortnight but like in other advanced markets of the world and to keep in sync with the international fuel prices and the daily changes in the currency exchange rates, they have decided to revise these rates on a daily basis.

In order to avoid confusion over the prices for the day, the customers have been advised to download IOC’s app or visit the website to verify the fuel prices for the day. The company says in Puducherry, petrol costs Rs 66.02 and diesel Rs 58.68 a liter, in Vizag, petrol costs Rs 72.68 and diesel Rs 62.81 per liter, in Udaipur petrol costs Rs 70.57 a liter and diesel Rs 61.23, in Jamshedpur petrol costs Rs 69.33 and diesel Rs 60.26 per liter, and in Chandigarh petrol costs Rs 67.65 and diesel Rs 57.74 per liter. The petrol and diesel rates at the three state owned fuel retailers vary only marginally by a few paise only.

The daily price revision aims to remove the fortnightly surge in the rates and align the prices to the dynamics of the international market. Also, the daily revision in the rates will likely be only a few paise per day. The industry experts feel that the daily revision is a step to eliminate the political pressures of restraining the hikes when needed. One may recall that post deregulation oil companies are free to revise the rates but are guided by political pressures most often. It may be noted that the government control of petrol prices came to an end in June 2010 while deregulation of diesel rates came into effect in October 2014.

While it may easy out the political pressure, ordinary consumer may face hassles in keeping a tab on daily revisions and the price for the current day. The results of the pilot in the select five cities will rest all speculations and will define the way forward.

Actually, Vinay is a writer by chance and writing is one of his passion. He love to pen down his thoughts in the form of blogs/articles & forums. He is a poet too :) Despite having a tough life, he is also passionate about the social relationship and he loves to interact with the new crowd across the globe.

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