India government has opted for dynamic fuel pricing which is being practiced in many developed countries, owing to the recent volatility in global crude oil prices. Transport fuel rates will be switched to daily revisions across the country from Friday. The decision has taken as the petroleum dealers have withdrawn their call for the closure of vends. The government came in line agreed to their demand and the price announcement will be made at 6 a.m. daily.
Petroleum Minister Dharmendra Pradhan on Wednesday said that the dealers are willing to the new timing and the countrywide daily revision of petrol and diesel prices will come into effect from June 16 as decided.
As of now, the state-run OMCs review and revise the retail fuel prices every midnight based on the global crude oil prices. However, Dealers demanded a change in timing as the new regime wouldn’t allow them to deploy manpower everyday to change rates at midnight.
“There were some practical difficulties which we have addressed in our meeting with the leadership of all the three petroleum dealers association today (Wednesday). Daily prices will change from 6 a.m.,” says, Mr. Pradhan.
This Daily revision of retail selling prices (RSP) is on a pilot run from 1 May in few cities like Jamshedpur, Visakhapatnam, Udaipur, Chandigarh, and Puducherry. Hindustan Petroleum Corporation, Indian Oil Corp (IOC) and Bharat Petroleum Corporation have now decided to implement it all over the country after the success of the five cities pilot.
“This move will ensure that the benefit of even the smallest change in international oil prices can be passed down the line to the dealers and the end-users,” says, Indian Oil in a statement. Delhi Petrol Dealers Association and few others called for the protest to reassure on their concerns about inventory loss due to this daily revision. All 26,000-plus Indian Oil dealers will be informed about the effective prices for the day.