OMCs to revise petrol, diesel prices daily from 16 June

State-run oil marketing companies will revise retail prices of petrol and diesel on a daily basis all across the country beginning 16 June, following a one-month pilot project on daily review of petrol and diesel price in five cities from 1 May.

OMCS had introduced a daily revision of petrol prices in five cities, which included Chandigarh, Jamshedpur, Puducherry Town, Udaipur and Vishakapatnam, from 1 May on a pilot basis.

After successful implementation of the scheme, PSU oil marketing companies. Including Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, have now decided to start daily revision in retail selling prices of petrol and diesel in the entire country with effect from 16 June 2017, Indian Oil Corporation stated in a release.

''Daily price revisions of petrol and diesel will make the retail prices more reflective of the current market conditions, minimising the volatility in the RSP of petrol and diesel. Further, it will lead to increased transparency in the system. This will also enable smoother flow of products from refinery/depots to retail outlets,'' the release stated, adding that the system of daily revision of petrol and diesel prices is followed in several developed countries.

''Public sector OMCs are taking steps to establish an appropriate mechanism for conveying the prices to consumers every day, including daily publishing of the prices in newspaper on a daily basis, prominent displays of prices at the retail outlets, sending of price-related data/SMS from the centralised locations, mobile apps etc,'' Indian Oil stated.

At present, India's three state-run oil marketing companies Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp review retail fuel prices periodically and usually revise them every fortnight to pass on the impact of global crude oil prices on their purchases.

The move will allow oil companies to align their retail prices more closely with the crude prices and help taper their losses, as currently, oil companies take 14 days for retail price adjustment.