Petrol, diesel daily change of prices: What consumers need to know

Mumbai: From today, prices of petrol and diesel will change everyday. The move has been effected to bring prices of these essential fuels in sync with global crude prices that change everyday.

Earlier, state owned oil marketing companies used to change prices of petrol and diesel every fortnight. Now as the dynamic pricing formula has been put in place, consumers should also know these things:

-- Prices of petrol and diesel will change at 6 am everyday and will be valid till 6 am next morning when the OMCs will put on display new rates. From today this is going to be an everyday practice.

-- Rates of petrol and diesel will not be uniform. They will vary from city to city and petrol pump to petrol pump also. OMCs follow marginal differential pricing formula.

-- Major players in the fuel marketing including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation follow marginal differential pricing formula in coming at rates, according to The Financial Express report.

-- Chandigarh, Jamshedpur, Puducherry District, Udaipur and Visakhapatnam are the places where the daily change in petrol and diesel prices is already in force since May 1.

-- The FE report adds that Petrol and diesel price will change on a daily basis by a few paisa per litre across all the 58,000 petrol pumps in the country.

-- “We are moving into a dynamic pricing. Correction in prices now happen after a gap of a fortnight but from now on it will be on daily basis to reflect the cost,” FE quoted IOC Chairman Sanjiv Singh as saying.

-- Consumers should also now what daily change of prices of petrol and diesel means for them. It is expected that everyday change will remove big jumps in petrol and diesel prices at the fortnight. The idea is to enable consumers more aligned to market dynamics.