From June 16 Petrol and Diesel Prices to Be Changed Daily (Download PDF)

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From 16th June 2017 Prises of Petrol and Diesels will be change daily as announced by oil marketing companies (OMCs) so prise of petrol and diesel will be changed daily at State-run oil marketing companies including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) across the country.

From June 16 Petrol and Diesel Prices to be changed daily

From June 16 Petrol and Diesel Prices to Be Changed Daily

From June 16 Petrol and Diesel Prices to be changed daily

  • The main aim of this decision is to give answer to the practice of undercutting by private retailers and also to bring India at par with the US oil market.
  • Private retailers such as RIL and Essarv the privet retailers will also accept the new pricing mechanism.
  • In the current system on the 1st and 16th of every month State-run oil marketing companies revise rates of petrol and diesel by counting average of international crude price of last 15 days and the currency exchange rate.

Key Facts

  • With this daily revision of prices retailers will get off from volatility of global crude prices.
  • With this price of petrol will not rise suddenly.
  • This move will initiate a price war and competition in 95 % of market which is under the public sector retailers.
  • Now state run retailers will get an chance to match private companies who have been undercutting them in a free market.
  • So from now state run retailers will not face inference form government when fixing prices of petrol and diesel to match the political considerations which means public retailers have a free hand in fixing the prices of petrol and diesel, in practice political considerations often guide the public retailers.

Background

  • The decision in this regard was taken after physically practicing it on Model across the country in Udaipur, Jamshedpur, Puducherry, Chandigarh and Vishakhapatnam from 1st May 2017.
  • This decision was pending from 2012 because at that point the state run companies were not willing to implement citing lack of connectivity and infrastructure.
  • Till 2010 Petrol pricing was under the control of government and till 2014 the diesel pricing was under the control of government.

- Published/Last Modified on: August 12, 2017

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