Major companies are going to launch the pilot project to change in the Petrol and diesel prices on a daily basis. Oil companies that going to bring this dynamic model including Indian Oil Corp(IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL). Under this dynamic model of pricing, both companies and customers will be benefited and this is done by changing of petrol and diesel price according to global oil prices. Change in petrol and diesel prices on a daily basis done from may.
The dynamic model of pricing includes:
- State fuel retailers currently revise rates on fortnight basis on dates 1st and 16th of every month. It is based on the currency exchange rate and on the average international price of the fuel in preceding fortnight.
- Rates of Petrol and Diesel will be changed on the basis of daily movement in international oil prices instead of fortnightly average.
- Major oil companies will start this project in five places and these places are Puducherry, Vizag in Andhra Pradesh, Udaipur in Rajasthan, Jamshedpur in Jharkhand and in Chandigarh.
- After studying implications of the first pilot, oil companies extend it to the other parts of the country.
- This change in petrol and diesel prices on a daily basis will benefits to both companies and customers because this will reduce the price risk arising out of fluctuations in crude.
Rates only differ by a few paise between pumps like Unbranded petrol at IOC pumps in Delhi costs Rs 66.29 per liter, at BPCL pumps in the city is priced at Rs 66.37 a liter and at HPCL pumps sell for Rs 66.48 per liter.
Chairman of IOC Mr. Ashok said that it is easy to change prices on a daily basis but firstly they will do a pilot in 5 decided places and then after studying implications they will extend it to the other parts. He also said Pilot to change in petrol and diesel prices on a daily basis is going to launched within the month. He has not told about any specific date, but sources said it could be launched on May 1.