Daily revision of petrol, diesel prices: The Federation of All India Petroleum Traders (FAIPT) is up in arms against the government’s decision to revise the price of petrol and diesel on a daily basis. The Federation has written to Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan to tell him that the petrol pumps associated with the body will not sell fuel on June 16, the day from which prices will fluctuate daily. FAIPT through a statement has said that if the decision to revise petrol prices is not revoked by the government then the dealers will be forced to go on an indefinite ‘No Purchase, No Sale’ period from June 24 till the government revokes its decision, according to the Indian Express.
On Thursday, three state-run oil marketing companies Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited said that they would revise fuel prices on a daily basis in an effort to minimise volatility and in order to prevent sudden fluctuations in fuel prices. The price of petrol and diesel are currently revised every two weeks, according to an Indian Express report.
In May, the three fuel marketing companies initiated a pilot project in Puducherry and Vizag in southern India, Udaipur in the West, Jamshedpur in the East and Chandigarh in the North to revise petrol and diesel prices every day, before implementing the mechanism nationwide in order to better shield themselves from volatility. Sukhminderpal Singh Grewal the spokesperson of FAIPT had said that fuel retailers “have already burnt their fingers” in these five cities.
Grewal told the Indian Express that ”Due to the daily fluctuations in the oil prices the retailers in these five cities have already gone into losses due to the inventory already held by them”.
Grewal also added that a fuel lorry takes two to three days to reach the petrol pump and if the price of petrol is lowered in this time frame then the dealer will go into a loss even before he starts selling the fuel.