State-run oil marketing companies will revise fuel prices on a daily basis nationally from June 16 onwards, as per various media reports.
The government companies – Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) - will review retail prices every day instead of every fortnight as has been the trend till date.
The companies are planning a national launch for dynamic petrol and diesel prices in the second half of this month. However, a date has not been finalised, a top official from an OMC told Business Standard.
On May 1, the dynamic fuel prices model was launched in 5 cities - Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam. The move will put India in sync with global practice of daily price revision.
The practice of daily price revision, followed by many developed nations, is popularly called dynamic fuel pricing. Based on crude price movement, petrol prices are revised daily.
In the current cycle of fortnight revision, oil companies are susceptible to fluctuations in crude and currency movements. The shift in pricing practice will help them link prices to cost more accurately, besides allowing analysts to predict earnings for these companies with greater uncertainty.
The shift to daily revision of prices was a suggestion by experts and not the government, oil minister Dharmendra Pradhan had said in April.
Private fuel retailers like Reliance Industries and Essar Oil are expected to follow suit and revise prices on daily basis.
As per latest figures, IOC, BPCL and HPCL own nearly 52,604 fuel retail outlet out of 56,190 total fuel outlets across the country.
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