Come May 1, five cities across India — one in every region including Chandigarh in Northern region, Jamshedpur in Eastern region, Udaipur in West and Vizag in Southern region besides Puducherry will start selling petrol and diesel on a daily dynamic pricing model.
Prices of the stock fuel at petrol pumps will be changed daily in line with the prevailing fuel prices in global markets. Presently, fuel prices change every fortnight and are calculated as net average of the prices prevailing over the previous 15 days.
This limited roll out will be followed by a nation wide roll out after testing the implementation of the scheme in these cities.
This move is seen as a major reform initiative under the Modi government and one that is in line with international standards.
News wire Reuters reported that roll out of “daily dynamic pricing” in five cities will help them identify the problems ahead of a nationwide roll out of the scheme later this year, the sources, who did not wish to be identified because of the sensitivity of the matter, said.No immediate comment was available from the state refiners.
The three state owned oil marketing companies including IndianOil, HPCL and BPCL have upto 200 fuel stations in the five cities, the sources said.
Following this roll out, even private fuel retailers such as Reliance Industries and Essar Oil – are also expected to follow this model.