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DYNAMIC PRICING

Petrol, diesel prices to vary daily from June 16

INDIA-OIL-ENERGY-PETROL Instead of using fortnightly average, pump rates will reflect daily movement in international oil prices and rupee-dollar fluctuations | File

Come June 16, get ready to pay different prices for petrol and diesel everyday. State-run oil company Indian Oil Corporation today said oil prices will be revised daily across the country beginning June 16. 

All public sector oil companies, including IOC, Hindustan Petroleum Corporation and Bharat Petroleum, will implement daily revision of petrol and diesel at their stations.

Currently, petrol and diesel prices in India are usually revised every fortnight, when oil companies pass on the impact of global crude fluctuations to consumers. 

In the current cycle of fortnightly revision, oil companies are susceptible to fluctuations in crude prices and currency movements. The shift in pricing practice will help them in more accurate price-to-cost linking, besides allowing analysts to predict earnings for these companies with greater uncertainty.

The shift to dynamic revision of prices was suggested by experts and not the government, oil minister Dharmendra Pradhan had said in April.

Instead of using fortnightly average, pump rates will reflect daily movement in international oil prices and rupee-dollar fluctuations.

“The move will increase transparency in the system and will enable smoother flow of petrol and diesel from refinery/depots to pumps. Many developed countries are already revising the prices of petrol and diesel on a daily basis,” IOC stated. 

IOC, HPCL and BPCL will adopt a variety of mediums to convey the day's petrol and diesel prices, the statement said.

This includes daily publishing of prices in newspapers, prominently displaying daily rates at petrol pumps and sending information on the latest prices via text messages and smartphone applications. 

The information is also likely to be available on social media. For example, when dynamic fuel pricing was launched last month in Puducherry, Visakhapatnam, Udaipur, Jamshedpur and Chandigarh on a pilot basis, the Indian Oil Corporation had pinned a new tweet to its Twitter feed every day displaying information on the latest petrol price.

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