It’s finally here. Beginning today the retail prices of petrol and diesel will be revised everyday across the country. This is a departure from the existing practice of review in the prices of petrol and diesel every fortnight, and is a leap further towards true deregulation.
The beginning of the new pricing regime was marked by the oil companies announcing a substantial cut of Rs 1.12 per litre in the price of petrol, and Rs 1.24 excluding state levies effective today. With daily revision however, chances of major changes in the prices are very low, and the rise or cut would mostly be in few paise, of course depending on the movement in the crude oil prices. Albeit, to add to the confusion for consumers, the prices may vary from town-to-town, though again, by just a few paise.
How to check daily price
Oil marketing companies have introduced several methods for consumers to check the day’s fuel price at a particular retail outlet, which will be effective from 6 am that day. Consumers can check the prices through SMS alerts, oil companies’ mobile apps, websites and toll-free phone numbers.
Customers could type RSP<SPACE>DEALER CODE, and send to 9224992249 for Indian Oil; 9223112222 for Bharat Petroleum; and 9222201122 for Hindustan Petroleum. Outlet-wise price information will also be available on the companies’ websites, and mobile apps, namely Fuel@IOC, SmartDrive (BPCL), and My HPCL.
Petrol, diesel price today
Here is a list of petrol and diesel prices across major cities as on today, Friday, June 16, which would be valid till 6 am tomorrow (Saturday).
Petrol (Rs per litre)
Diesel (Rs per litre)
Why review prices everyday
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.
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 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.