State-owned oil companies plan to implement a daily revision of fuel price in five cities from May 1 ahead of a nationwide roll-out of the scheme, industry sources said.
To begin with, daily revision of fuel prices will be implemented in Puducherry and Vizag in southern Indian, Udaipur in the West, Jamshedpur in the East and Chandigarh in the north, they said.
State refiners currently revise fuel prices every fortnight to reflect volatility in the currency and global oil markets.
State refiners – Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp – operate 90% of the retail outlets in the country.
The three have up to 200 fuel stations in the five cities, the sources said.
The roll out of “daily dynamic pricing” in five cities will help them identify the problems ahead of a nationwide roll-out of the scheme later this year, the sources, who did not wish to be identified because of the sensitivity of the matter, said.
No immediate comment was available from the state refiners.Private fuel retailers – Reliance Industries and Essar Oil – are expected to follow their state peers, the sources added.
Private fuel retailers – Reliance Industries and Essar Oil – are expected to follow their state peers, the sources added.
On April 1, the price of petrol were cut by Rs 3.77 per litre and that of diesel by Rs 2.91 a litre, the first change in rates in two-and-a-half months.
At present, the state fuel retailers revise rates on 1st and 16th of every month. The rate revisions are based on average international price of the fuel in the preceding fortnight and currency exchange rate.
