Starting June 16, you will be paying a different rate every day when you go to a gas station near you to get petrol or diesel for your vehicle. State oil companies will revise petrol and diesel prices daily for consumers across the country starting next Friday. This is an extension of a pilot that the oil companies have been running in five cities since May 1.
Oil marketing companies had implemented daily revision of retail selling prices (RSP) of petrol and diesel on a pilot basis in Udaipur, Jamshedpur, Puducherry, Chandigarh, and Vishakhapatnam.
Indian Oil Corporation Limited (IOCL), the largest oil retailer in a statement said, “Daily price revisions of petrol and diesel will make the retail prices more reflective of the current market conditions, minimizing the volatility in the 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 daily basis.”
The oil marketing companies would take steps to establish an appropriate mechanism for conveying the prices to consumers every day, including daily publishing of the prices in newspaper, prominent displays of prices at the retail outlets, sending of price related data/SMS from the centralized locations, mobile apps etc., IOCL said.
Currently, except for the five cities that were part of the pilot project, for the rest of the country, companies revise petrol and diesel prices every fortnight.
Petrol and diesel prices have been deregulated in India for years now – which means they are linked to market rates. State-run oil retailers Indian Oil Corporation Limited(IOCL), Bharat Petroleum Corporation Limited (BPCL) Hindustan Petroleum Corporation Limited (HPCL) revise petrol and diesel rates every fortnight based on global oil prices and foreign exchange rate. The three state-run oil marketing companies operate over 95 per cent of the retail outlets (petrol pumps) in the country.