Starting June 15, 2017, fuel prices will be revised on a daily basis across the country. The announcement comes more than a month after oil companies ran a pilot project by adopting the same method in 5 cities across the country such as Chandigarh, Jamshedpur, Pondicherry, Vishakhapatnam and Udaipur.
After attaining success in the pilot project, oil companies including Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation will implement the project throughout the county. Currently, oil companies revise the prices of petrol and diesel on a fortnightly basis based on the international crude oil prices and the USD-INR exchange rates.
Also read: Petrol And Diesel Prices Revised; Hiked By INR 1.23 and INR 0.89 Respectively
Daily price revisions of Petrol and Diesel will make the retail prices more reflective of the current market conditions, minimizing the volatility in the Retail Selling Prices (RSP) of petrol and diesel. Further, it will lead to increased transparency in the system. This will also enable 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.