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Petrol and diesel prices to change daily from May 2
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Print Petrol and diesel prices to change daily from May 2This pilot project is first being implemented in Puducherry and Vizag in the south, Udaipur in the west, Jamshedpur in the east and Chandigarh in the north
We are already aware that the price of petrol and diesel change regularly at a certain interval. However, state-owned oil companies like Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) have introduced a pilot project in five cities where the prices of petrol and diesel will be revised on a daily basis from Tuesday.
This pilot project is first being implemented in Puducherry and Vizag in the south, Udaipur in the west, Jamshedpur in the east and Chandigarh in the north. The price of petrol and diesel majorly depends upon four factors, the price of crude oil in the international market, currency exchange rate, Value Added Tax (VAT) levied by state governments and excise duty levied by the central government.
While the taxes are fixed, the price of crude oil and the dollar exchange rate change regularly. Earlier, the price of petrol and diesel were being revised on the 1st and 16th of every month. This lead to a sudden increase or decrease in price after every fortnight. With the implementation of dynamic pricing, the prices will increase or decrease by few paise per day. This will also stop oil companies from taking on unnecessary loss or excessive profit as now they won’t have to wait for 15 days to revise the rates. This practice is already being followed in most advanced markets and is likely to be applied all over the country after its implications are studied through the pilot project.
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