New Delhi: Starting Friday, petrol and diesel prices will be revised daily in sync with any movement in international oil rates. Rates will change at 6 am every day depending on movement in cost on the previous day.
Dynamic fuel pricing, or daily revision of retail selling prices (RSP), has already been implemented on a pilot basis in Udaipur, Jamshedpur, Visakhapatnam, Chandigarh and Puducherry from May 1.
Here’s all you need to know about dynamic fuel pricing:
How to Check the Fuel Price Movement
- Mobile App: Customers can download Indian Oils app Fuel@IOC to keep a track of the updated daily petrol prices in all cities
- SMS: The updated fuel prices will also be available on SMS. Customers can send a message — RSP< SPACE >DEALER CODE TO 9224992249. The dealer code of each petrol pump is displayed at the fuel station.
- Webpage: Customers can also check the daily revision in fuel prices using RO Locator. The link is available through IOC’s official website.
Daily pricing or dynamic pricing is followed in several developed countries. The move is expected to allow oil companies to be in sync with international oil prices. It may also help oil marketing companies to negotiate the fluctuations in international pricing.
With the move, consumers are less likely to feel the pinch of a big jump that fortnightly changes bring. It is also expected to help check hoarding and consumers may get the benefits of an international cut sooner. Oil marketing companies would also not have to bother about political repercussions of price hikes.
Petrol pump dealers, however, argue that of the 58,000 fuel outlets in the country, around 40,000 are automated. Of them, only 5,600 are internet enabled, which may affect daily revisions. They also point out that implementation may be a problem in small towns where manpower is low.
Dealers are also worried about inventory loss, but the state-run Indian oil Corp has sought to reassure them. "The fear of dealers about inventory loss is unwarranted as the change of prices will happen both upwards as well as downwards, and thus both gain and loss would compensate each other," IOC said in a release.
"The pilot implementation in five cities has demonstrated that the Indian market is ready for the change. The study in 5 cities has shown that customers have accepted the DPR in right earnest," it said.
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