Ever since the daily revision in prices of fuel was ordered, there has been a significant rise in petrol and diesel prices. The only difference is that since the rates fluctuated every day by only some paise, this may not have been noticed. However, considering the total change in fuel prices since June 2017, the hike is quite large. The daily revision of rates came into effect on 16th June and ever since there has been a hike of Rs 6 per litre in petrol prices and Rs 3.67 per litre for diesel. Petrol prices came down from the initial Rs 65.48 in June to Rs 63.06 on 2nd July, however, they have been on a rise ever since.
Similarly, diesel was priced at Rs 54.49 per litre on 16th June and on 2nd July, the price slipped to Rs 53.36 per litre. However, since then the prices have been increasing bringing it to Rs 57.07 on 28th August.
The decision for daily revision of fuel prices was collectively taken by state-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own over 95 per cent of nearly 58,000 filling stations in the country.
Before this rule applied, revision of fuel prices was done every fortnight after considering volatility in the currency and global oil markets. Daily change in fuel prices was introduced to eradicate big leaps in prices that happened every fortnight, and also keep the consumer more aligned to market dynamics.
The point here is quite clear. While the previous system involved increasing or decreasing the prices at once after a fortnight which fell as a burden on a common man’s pocket, now even the slightest fluctuation in global oil prices is reflected on the gauge we see at the filling stations. Although, it will also have to be considered that 28th August petrol prices in Delhi are the highest in the last three years.
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