Petrol and Diesel price will vary everyday from 16th June

Oil marketing companies (OMCs) are set to dump the current mechanism of fixing petrol and diesel prices on a fortnightly basis and instead move to a new mechanism across the nation from the second fortnight of this month.

"After its successful implementation, public sector oil companies have now made a decision to start daily revision in retail selling prices of petrol and diesel in the entire country with effect from 16th June, 2017", Indian Oil said. Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp had started a pilot project in five cities -Udaipur, Jamshedpur, Puducherry, Chandigarh and Visakhapatnam - starting May 1, 2017 wherein prices of these fuels changed daily according to the worldwide crude prices, the three firms said in separate but identical statements.

So far, the state-run retailers revised the fuel prices on the basis of the rupee-dollar exchange rates in the preceding fortnight and the average prices of crude and products in regional bulk markets.

Come June 16 and petrol as well as diesel prices across the country will be revised on a daily basis in sync with global rates as happens in most advanced markets.

The fuel price model was launched in five cities - Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam from May 1 that the dynamic fuel price model was launched at five locations in the course with the global practices.

State-owned fuel companies have chose to revise fuel prices every day starting June 16th. In the five cities that the pilot project is now operating, private players have adopted the same methodology. IOC, HPCL and BPCL will adopt a variety of mediums to convey the day's petrol and diesel price, the statement said.

While petrol price was freed from government control in June 2010, diesel was deregulated in October 2014.

"Each (oil marketing) company will try to keep its retail prices at the lowest possible to attract more consumers".

Fuel pump owners say they are not at all happy with the system and have protested it with the government at different fora after the state-owned run companies allegedly turned a deaf ear. Here is an example, if the HPCL bunk in Fountain Circle sells petrol at Rs. 71.50 per litre, in Reliance bunk it is sold at Rs. 71.60, in BPCL at Rs. 71.48 and IOCL at Rs. 71.42, he said.

  • Zachary Reyes