Fuel prices to change daily from June 16

Currently, the fuel prices are reviwed by the oil companies every fortnight.

State-run oil marketing companies have decided to revise the prices of petrol and diesel daily from June 16 onwards.

Currently, the fuel prices are reviwed by the oil companies every fortnight while taking global fuel prices and Rs-Dollar exchange rate into account.

A pilot project to review fuel prices on a daily basis was carried out at five locations - Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam - from May 1, 2017.

Experts say that this daily revision of prices may cause problem for the dealers to manage their inventory.

Publically owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) control the bulk of fuel outlets in the nation. These state run corporations control 52,604 fuel outlets out of the total 56,190 fuel retail outlets.

The major benefit of dynamic fuel pricing is that companies don't have to wait for a fortnightly review to adjust the prices based on global crude prices.

OneIndia News