The dynamic fuel pricing policy has caught the attention of the market-savvy IT hub, with the IOC Chairman announcing that petrol and diesel prices are set to change every day in sync in with international rates. The move will be implemented in five cities as a pilot; public response and other implications of the decision will be studied before it makes its way to other parts of the country.
"I think the Modi government’s mantra is the creation of propaganda, demonetisation is evidence of this. This move shouldn’t fall flat like demonetisation," said restaurateur Nikhil Sachdeva, who joined his friend, Roshik Vohra for DC’s Chatroom on a busy Friday evening. State-owned fuel retailers Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd are all part of the decision, which will be brought into effect from May 1.
"The approach is new to us as it is a method employed mainly by international markets. So, we can only wait and see. However, if the government could execute it in a proper way and not like the failure of demonetisation we would see it as a good move in the long-run. Diesel and fuel prices fluctuate several times a year anyway, so this could be a good move," says Nikhil. "Daily changes means there will not be a sudden spike or drop."
Vohra, however, believes the move is similar to what investors feel on a daily basis when it comes to their share and stock prices which are affected by market moods. "It is similar to people having an interest in BSE and NSE, but less intense. It is new for people but a change in the right direction is always good," he adds.
He makes another relevant point, trying to understand the implications from a business man’s point of view. "Businessmen and dealers will benefit from it in a positive way. Also, the cities chosen are not full-grown metros but upcoming cities which are more manufacturing or production oriented."
Looking at the move from a long-term perspective, Nikhil says, "It might be also helpful in reducing inflation. But, broadly, the common man or people like us have not much to worry. And, on an average, it won’t affect us much. Daily changes or fluctuation are very marginal and are not likely to make a drastic impact on us in any way."
