From June 16, petrol and diesel prices will change daily, depending on the global crude oil prices. This is an attempt to protect retailers from the unpredictable prices of the current market.
This has been in effect on a pilot basis in five cities—Jamshedpur, Puducherry, Chandigarh, Visakhapatnam, and Udaipur—since May 1. As result of its success, it is now going to be implemented all over India by Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, and Bharat Petroleum Corporation Ltd. According to IANS,
"Each (oil marketing) company will try to keep its retail prices at the lowest possible to attract more consumers. Though the difference will be only about 15/20/30 paise per litre daily, it spells substantial savings in the long run and for bulk customers."
Currently, in other cities, petrol and diesel prices have been changing fortnightly. This change would also mean that bunks will be closed for a few hours every night as it takes time to know the changes in the global market and make the required adjustments. According to The Times of India, Indian Corporation Limited (ICL), which is the largest oil retailer, released a statement saying,
"Daily price revisions of petrol and diesel will make the retail prices more reflective of the current market conditions, minimising the volatility in the RSP of petrol and diesel. Further, it will lead to increased transparency in the system. This will also enable smoother flow of products from refinery/depots to retail outlets. Many developed countries are already revising the prices of petrol and diesel on a daily basis."