After a successful trial in a few cities, the Indian Oil Corporation (IOC) will implement daily revision of petrol and diesel prices across the country from 16 June.
According to reports, the pilot project of daily oil price review, which was implemented in five cities — Puducherry, Visakhapatnam, Udaipur, Jamshedpur and Chandigarh — starting from 1 May, has been very effective and encouraging.
“The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” the IOC had said.
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.
At present, India’s three state-run oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation review retail fuel prices periodically and usually revise them every fortnight to pass on the impact of global crude oil prices on their purchases.
Last revise petrol price was announced on May 31 where Indian Oil Corp (IOC) announced petrol price hike by Rs. 1.23 per litre and diesel by 89 paise a litre in order to compete with rising international fuel rates.
IOC to implement daily revision of petrol and diesel prices across the country from 16 June. It’s currently in place in five cities.
(With inputs from agencies)