India’s state-owned fuel retailers decided to opt for a daily revision of fuel prices, as per the international regulations. Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan petroleum Corporation Limited, which own over 95 per cent of the fuel market in the country, will be launching the project on a pilot basis in five cities, before a complete roll-out.
Puducherry, Visakhapatnam, Udaipur, Jamshedpur and Chandigarh are the five cities selected for the pilot project.
The decision has been taken in the wake of a volatile market situation. Prior to this, the fuel price revision happened every fortnight. Encouraging the move, Union P&NG Minister Dharmendra Pradhan said, “We have adhered to the policy of non-interference in the market and let a pricing mechanism based on various market dynamics evolve.”
The fuel prices were deregulated for petrol in 2010 and diesel in 2014.
Petroleum minister Dharmendra Pradhan indicated that the government has encouraged market-based pricing of fuels.
“We have adhered to the policy of non-interference in the market and let a pricing mechanism based on various market dynamics evolve,” Pradhan said at a conference.
Pradhan however made it clear that the government will not force a decision for daily revision of fuel prices. “Everyday change in pricing of petroleum products is a recommendation of experts.
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