Millions of vehicle users in India may soon have to get used to change in fuel prices on a daily basis, unlike the current fortnightly change in fuel prices.
In line with the current practice employed by several developing economies, the government is working on a plan to introduce fuel price change at the retail outlets on a daily basis, a report in The Economic Times said.
For customers, the proposed move could be beneficial as prices of petrol and diesel are unlikely to change much on a daily basis, barring few paise.
"Daily price revision is about introducing international standards in the Indian fuel retail market. It helps both customers as well as dealers in managing their purchase, the ET report said quoting a executive of a state-owned oil firm.
With the current practice of fortnightly change in fuel prices, prices of petrol and diesel at times are hiked by more than a rupee or two reflecting volatility in global crude prices, thereby pinching customers' pockets. For instance, oil firms on 1 September, 2016, hiked petrol rate by Rs 3.40 a litre and diesel prices by Rs 2.70 a litre at one go, putting pressure on vehicle users.
Similarly on 16 October, petrol prices were raised by Rs 1.80 per litre and Rs 2.80 per litre for diesel as global prices were on the rise forcing domestic oil companies to follow suit.
However, on 31 March this year, the state-owned oil firms slashed prices of petrol by Rs 3.77 a litre and diesel by Rs 2.91 per litre, bringing relief to lakhs of vehicle owners.
Currently, state oil firms Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum control around 95 percent share of the retail market, and with automation in several retail outlets, daily price changes may not be that difficult for the companies, the ET report said.
Published Date: Apr 07, 2017 01:56 pm | Updated Date: Apr 07, 2017 01:56 pm