1. Petrol price to change everyday all over India from June 16

Petrol price to change everyday all over India from June 16

India’s state-run oil marketing companies will revise petrol price on a daily basis all across the country beginning June 16, following a pilot project on daily review of petrol and diesel price in five cities from May 1.

By: | Updated: June 7, 2017 7:05 PM
The reported roll out of daily petrol price revision mechanism all across India comes close on the heels of a pilot project to review petrol and diesel prices on a daily basis in five cities from May 1. (Image: Reuters)

India’s state-run oil marketing companies will revise petrol price on a daily basis all across the country beginning June 16, ET Now reported on Wednesday citing unidentified sources from the Ministry of Petroleum and Natural Gas. The reported roll out of daily petrol price revision mechanism all across India comes close on the heels of a pilot project to review petrol and diesel prices on a daily basis in five cities from May 1. There is no immediate information available on daily revision of diesel prices across all India.

At present, India’s three state-run oil marketing companies Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp review retail fuel prices periodically and usually revise them every fortnight to pass on the impact of global crude oil prices on their purchases.

Earlier in May, the three fuel retailers begun a pilot in the cities of 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 everyday, before implementing the mechanism nationwide in order to better shield themselves from volatility in global crude oil prices.

Dynamic gains

Since these three companies together control the bulk of the fuel retail market with over 90% of the operational outlets between them, and hence practically set the benchmarks in fuel pricing, the private fuel marketers Reliance Industries and Essar Oil, who have most of the remaining market, are also expected to soon follow suit.

The daily price change practice, commonly followed in many developed countries, is called dynamic fuel pricing. It is a practice in which the companies change the prices of petrol and diesel every day, based on crude price movements and don’t have to wait for a fortnightly review to adjust the prices.

Crude impact

The proposed move will allow the oil companies to align their retail prices more closely with the crude prices and will help them in tapering their losses, as currently, the oil companies are vulnerable to fluctuations in currency and crude oil prices over the 14-day cycle of retail price adjustment. This shift in pricing practice will also help in predicting their margins more accurately.

The introduction of daily price revision mechanism will likely propel Indian retail fuel market to the international standards. This move will also allow private competitors, Essar Oil and Reliance Industries, which currently follow the price set by state-owned companies, to also shift to a dynamic model.

The revision in retail fuel prices by the state-run oil marketing companies on a daily basis instead of fortnightly was recommended by the experts and was not on the orders of the government, oil minister Dharmendra Pradhan had said in April.

Tags: Petrol
  1. D
    dharmik
    Jul 26, 2017 at 5:06 pm
    Know the Current Petrol and diesel prices of you city. Get Notification of next day price change at 8 PM. Know near by petrol pumps. Download FuelBuzz app on below link. s: play.google /store/apps/details?id com.fuelbuzz.locate hl en
    Reply
    1. Saurabh Agrawal
      Jun 9, 2017 at 5:04 pm
      प्रत्येक दिन भाव बदलकर वर्तमान में हित में नहीं डीज़ल/पेट्रोल के भाव प्रत्येक दिन बदलने से ग्राहक/सेवक के भ्रमित होने की सम्भावना अधिक है | इससे अनावश्यक मतभेद/टकराव हो सकता है क्यों कि गलती किसी से भी हो सकती है,ग्राहक के बहस करने की सम्भावना भी अधिक है | जिससे अनावश्यक टकराव होगा | इसमें सभी मशीनों का संचालन सम्बंधित कम्पनीयों के मुख्यालय से हो | जिससे त्रुटि की सम्भावना भी कम हो तथा ग्राहक को भी विश्वास होना चाहिए कि स्थानिय स्तर से मशीनों मे मूल्य परिवर्तित नहीं किया जा सकता है |
      Reply
      1. I
        Indian
        Jun 9, 2017 at 4:42 pm
        सरकार ने फैसला किया है कि 16 जून से पेट्रोल डीजल के दाम हर रोज बदलेंगे,,,, ग्राहक पेट्रोल डीजल लेने से पहले हर रोज कैसे याद रखेगा की आज क्या दाम है पेट्रोल पंप वाले अपनी मर्जी से ग्राहक को चुना लगा सकेंगे तो पेट्रोल पंप वालों की अधिक कमीशन की मांग को ,""ऐसे""एडजस्ट किया है सरकार ने
        Reply
        1. R
          Raveendran
          Jun 8, 2017 at 8:29 am
          How do the retail petrol station calibrate their equipment daily? Either they charge more, no way less.
          Reply
          1. P
            Prof. H.
            Jun 8, 2017 at 5:19 am
            THIS MAY BE DIFFICULT FOR MANY CUSTOMERS. ESPECIALLY IN THE RURAL AREAS. THEY HAVE TO BE AWARE OF THE PRICE EVERY MORNING. BY THE BY, STATE GOVTS. MAY FIX AT PARTICULAR PRICE AND THE DOWNWARD FLUCTUATIONS MAY BECOME INCOME TO THE STATE. IF THE PRICE EXCEEDS, THEN THEY CAN ALTER ACCORDINGLY. BY THIS, CUSTOMERS WOULD HAVE A FIXED PRICE FOR QUITE SOMETIME. FLUCTUATIONS FOR FRACTION OF A RUPEE MAY NOT AFFECT THE PURSE OF THE CUSTOMER MUCH, BUT OF COURSE MAY BE A BOTHERATION.
            Reply
            1. H
              Hari
              Jun 7, 2017 at 8:07 pm
              THE PEOPLE HAS ALREADY LOST TRILLIONS OF RUPEES IN LAST 70 YEARS DUE TO CORRUPT PRACTICES DONE BY CONGRESS PARTY BY ALLOCATING MAJORITY OF DISPENSING PUMPS TO CORRUPT AND MONSTER POLITICIANS. NO STERN MEASURES ARE TAKEN BY ANY OF PAST AND PRESENT GOVT TO STOP LESS DISPENSING AND ADULTERATED PETROLEUM PRODUCTS AT PUMPS. THIS IS BIGGEST RACKET OF THIS COUNTRY WHICH IS OVERLOOKED BY ALL GOVT DUE TO M INVOLVEMENT OF CORRUPT POLITICIANS AND THEIR RELATIVES. BJP GOVT HAS KEPT THEIR EYES CLOSED ON THIS SCAM TILL DATE WHICH IS SUCKING BLOOD OF PEOPLE. THIS MATTER IS RAISED TIME & AGAIN BUT NOTHING IS DONE SO FAR EXCEPT SEA OF FEW PUMPS IN UP. THE PUBLIC IS FADE UP WITH CALLOUS AT UDE OF BJP GOVT WHO IS CLAIMING TO BE CHAMPION OF ANTI-CORRUPTION DRIVE BUT NOTHING IS DONE TO STOP THIS SCAM.
              Reply
              1. Umeshchandra Mishra
                Jun 7, 2017 at 7:36 pm
                One problem with daily price change will be manipulation by some unscrupulous pump owners especially in rural areas. They may not p on the lower prices iimmediately as it will be difficult for consumers to mmonitor daily fluctuations. May be the prices can be revised once a week.
                Reply
                1. N
                  N.Ganesh Hegde
                  Jun 7, 2017 at 10:24 pm
                  Always give petrol and Diesel prices in news chanals as flash news. Then only public will alert
                  Reply
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