Petrol and diesel prices to change everyday in these 5 cities from tomorrow

The government and oil marketing companies are going ahead with their pilot project of revising fuel prices on a daily basis in five cities. If successful, it would be rolled out in the rest of the country. 

At first though, the daily price change regime would go live in Puducherry, Visakhapatnam, Udaipur, Jamshetpur, and Chandigarh, according to a report by Business Standard. 

It says that oil marketing companies have already installed new hardware and software at certain pumps for the daily price revision to be effected.

Indian Oil Corporation said they have made the changes in their backend which will automatically change the price of 43 of its 109 outlets. The rest will have to be done by the dealers, the report said. 

However, the fuel dealers will get the price a day earlier at 830 pm, the report said, and the public would be notified through SMSes and press releases. 

How will the new price be calculated? Just like the current practice the base price would be according to the global crude oil basket benchmarks. To this, oil marketing companies will add marketing margins, taxes, dealer commission, etc, according to the report. 

Currently, petrol and diesel prices are revised every 1st and 15th of the month. Now, for these five cities, the prices will change at midnight everyday. This will help in doing away with any significant price corrections and consequent shocks for the customers. 

The move comes after petrol prices were deregulated in June 2010 and diesel in October 2014 and set by oil marketing companies on a fortnightly basis.