Motorists in India will have to soon contend with a new reality – change of fuel prices every day. Following up on the pilot project of daily revision of retail selling prices of petrol and diesel from May 1 in Udaipur, Jamshedpur, Puducherry, Chandigarh and Vishakhapatnam, public sector oil marketing companies (OMCs) Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation have decided to implement the daily revision across the country with effect from June 16.
The decision is aimed at making retail prices reflective of current market conditions and minimise volatility in RSP of petrol and diesel. Taking a cue from developed countries which have implemented similar systems, OMCs believe that this will lead to more transparency in the system and enable smoother flow of products from refinery/depots to retail outlets.
OMC’s currently own over 95 percent of the nearly 58,000 petrol pumps in the country. Currently, prices are revised on the first and 16th of every month, depending on the movement of fuel prices in the international market, as well as the rupee-dollar exchange rate of the previous fortnight.