After the recent revision in petrol and diesel prices on April 1, the prices are now set to change every day
In order to remove the giant leaps in the petrol and diesel rates, the Government has enabled a daily price change which will be aligned to market dynamics. From Ist May 2017, the petrol and diesel prices will change every day in order to remain in sync with the international rates. This system is followed across global markets and the Government is aiming for a strong move which will help link the market rates across all the pumps in the Country.
The Indian Oil Corporation, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corporation Ltd own majority of the petrol pumps in the country, they aim to launch a scheme for the daily price revision, which will begin with five cities from May and then be extended across all the cities in the country. The five cities include Udaipur in Rajasthan, Vizag in Andhra Pradesh, Puducherry, Chandigarh and Jamshedpur in Jharkhand.
Currently, the rates are revised fortnightly and they are based on an average international price of the fuel and keeping the exchange rate of currency in mind. Now, the pumps will show the daily movements in international oil prices and the currency exchange rates between Rupee and US dollar. Once the scheme is implemented in the first five cities, it will be easily carried forward to many more cities in the Country.
The consumers will be aligned to the market dynamics and the fluctuations in the International market, it will reduce the big leaps which are effected at the end of every fortnight. Rate differences only amount to a few paise across different petrol pumps. Although oil companies have the freedom to revise rates, but they are usually guided by political conditions across the Country. The daily changes will only amount to a difference of a few paise per litres, the political influence will end and the public will have a rate that is neutral and open to the market dynamics. This is a welcome change for the Government and the owners of the association, which had to remain under the political pressure and could not adjust the rates as per the market dynamics. If the pilot scheme of implementation is successful in the first five cities, it will soon be implemented across the Country.