Indians are in for a wild ride come June 16, as the nation’s government has announced that the costs of petrol as well as diesel are likely to be revised on a daily basis. This change is aligned to what most of the developed economies are doing, by synchronizing the fuel prices daily with the international rates. The pilot was run in five cities already and has met with success.
What Consumers Will Experience
The overall change in fuel costs will not be significant to the average consumer; the price is mostly going to change by a few paisa per liter per day, and this is expected to keep the fuel prices in tune with the changes in the international markets and the foreign exchange rates. Sanjiv Singh, the IOC chairman, stated that the nation is now moving into a more dynamic pricing state. The changes and corrections in costs of petrol and diesel will start happening on a daily basis to reflect the price of crude on an international level. The rates will also change from city to city as well as between fuel stations owned by different companies. These include the Bharat Petroleum Corp., Ltd., Hindustan Petroleum Corp., Ltd., and Indian Oil Corp.
OMCs to Dismantle Fortnightly Pricing Routine
The oil marketing companies from the public sector are currently agreeing to do away with their older practices of changing the price of petrol and diesel on a fortnightly basis. June 16 onwards, all 58,000 petrol pumps in India are to sell fuel based on this daily revised price tag.