Petrol and Diesel Prices To Change Daily

Petrol and Diesel Prices To Change Daily


Petrol and Diesel Prices To Change Daily

Petrol and Disesl prices will change daily starting May 1, 2017 on the basis of oil price change in international market. In most advanced markets petrol and diesel prices change daily, this will happen in India too. Currently prices are revised on 1st and 16th of every month with respect to average international price and currency exchange rate fortnightly with some state levies.

The price of unbranded petrol will be almost same across different oil retailers with only  marginal difference . Daily price change is likely to be only few paise per liter. But the prices will be market linked prices on daily basis. Initially daily price change will start in five cities only on pilot basis but later it will implemented in all states across the country.

State-owned oil retailers including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum will start pilot project in five cities namely Puducherry, Vizag(Andhra Pradesh) in southern India, Udaipur(Rajasthan) in western India, Jamshedpur(Jharkhand) in eastern India and Chandigarh in northern India..

Petrol prices were deregulated in June 2010 but diesel prices were deregulated in October 2014. Increase in prices of oil has direct effect on inflation. The benefit of low crude oil prices is not passed completely to the consumers. Government can to increase duties on petrol and diesel whenever required.

Daily price change may be difficult initially because of technical constraints in some of the petrol pumps. Not all petrol pumps are automated and there might be some network connectivity issue. But oil marketing companies are working to fix any problem before implementing it nationwide. At present there are 58,000 petrol pumps approximately.

Daily price change of petrol and diesel might have some effect on essential commodities such as fruit and vegetables. Although fluctuation is likely to be marginal only.

Private oil retailers like Reliance Industries, Essar Oil etc are also likely to follow this dynamic oil pricing model.

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