Oil prices to change every day from May 1 in 5 cities in India

Vastavam Web: The Union government has decided to change the oil price on every day from May 1 in five cities in India. At present the government and oil companies are changing the price as per the fluctuations of crude in international market, but now its decided to change the price every day.

Come May 1, petrol and diesel prices will change every day in sync with international rates, much like what happens in most advanced markets. State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own over 95 per cent of nearly 58,000 petrol pumps in the country, will launch a pilot for daily price revision in five select cities from May 1 and gradually extend it to all over the country.

“Oil companies will implement it on pilot project in 5 cities. After this, they’ll decide what to do with rest of the country,” Petroleum minister Dharmendra Pradhan said. A pilot for daily revision of petrol and diesel price will be first implemented in Puducherry, Vizag in Andhra Pradesh, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh, he said. State fuel retailers currently revise rates on 1st and 16th of every month based on average international price of the fuel in the preceding fortnight and currency exchange rate.

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