India all set to adopt the practice of revising petrol and diesel prices daily, based on the movement of international crude prices as well as the rupee-dollar exchange rates.
Starting 1st May 2017, fuel prices shall see a daily revision in alignment with the international rates across five cities, i.e. Puducherry, Vishakapatnam, Udaipur, Jamshedpur and Chandigarh. Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation which own over 95% of the petrol pumps in the country shall introduce the daily price revision practice in the above mentioned five cities in the pilot phase.
This decision will lessen the big hikes in rates at the end of the fortnight and will help the alignment of fuel prices to the market fluctuations. The industry feels they need to do a pilot phase in the beginning and study its implications, and once this is done, they will extend it to other parts of the country. The US and Japan currently follow this practice of revising fuel prices daily while Korea, Thailand, Taiwan and UK do it on a weekly basis.
Here in India, on the 1st and 16th of every month, state-owned oil marketing companies revise the fuel prices depending on the fluctuations in the international market as well as the rupee-dollar exchange rate of the previous fortnight.
Fuel Prices In India
– India shall practice daily revision in fuel prices starting 1st May 2017
– The pilot run will be tested on five states, Puducherry, Vishakapatnam, Udaipur, Jamshedpur and Chandigarh
– Fuel prices in India are determined by the fluctuations in the international crude price as well as the rupee-dollar exchange rate
