Public sector oil marketing organizations will update oil and diesel costs across the nation on a daily basis, Indian Oil said on Thursday. Right now, fuel costs are revised on a daily basis in five cities. The oil marketing organizations had before implemented daily revision of petrol and diesel costs on a pilot basis in Udaipur, Jamshedpur, Puducherry, Chandigarh and Vishakhapatnam from May 1, 2017. In an announcement, Indian Oil stated: “After its successful implementation, public Sector oil marketing organizations have now chosen to begin daily revision in retail selling cost of petrol and diesel in the whole nation with effect from sixteenth June, 2017.”
Daily price revisions of petrol and diesel will make the retail costs more reflective of the current market conditions, minimising the volatility in the fuel costs. “Further, it will lead to increased transparency in the system and enable smoother flow of items from refinery/ depots to retail outlets,” said Indian Oil Corp, the nation’s biggest fuel retailer. Many created nations change the costs of petrol and diesel on a daily basis.
Indian Oil likewise stated: “Public sector oil marketing organizations are ventures to set up a suitable component at passing on the costs to buyers every day, including daily publishing of the costs in newspaper, prominent displays of costs at the retail outlets, sending of value related data/SMS from the centralized locations, mobile applications and so on.”
State-run oil organizations – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – operate 90% of the retail outlets in the nation.
Petrol and diesel costs are currently controlled by worldwide crude costs and the value of the rupee against the dollar as India imports bulk of its energy requirement.