You are here: Home » Companies » News
Business Standard

Private petro firms will also revise fuel prices daily from Friday

Essar Oil MD says the move will benefit all stakeholders in the long run

Shine Jacob  |  New Delhi 

inflation, petrol

Taking a cue from state-run oil marketing (OMCs), private sector fuel retailers Reliance Industries, Essar Oil and Shell India are likely to revise motor on a daily basis from Friday.

“Our outlets are already automated and can go live with dynamic pricing any day. As soon as other players shift to a daily pricing regime, we will also,” said a senior official from a private sector major, on condition of anonymity.

As of April 1, by official data, India had 59,595 fuel retail outlets. Of these, close to 54,000 were owned by state-run Indian Oil Corporation (IOC), Hindustan Petroleum Corporation and Bharat Petroleum Corporation. The others are owned by private players. “It is a good decision by the government. There might be some teething issues in the beginning but will benefit all stakeholders in the long run,” said  , managing director, Essar Oil. 

Dealer associations, however, have called for 'no purchase' from Friday. Ajay Bansal, president, All India Petroleum Dealers' Association, says the decision on daily revision of prices by OMCS was made without consulting dealers.

The dealers also want a n increase in their sales commisison, now two to three per cent. OMCs are expected to decide on this by June 30.

“Through daily pricing, we will have a closer alignment with international prices and better transparency in the system. More, it will reduce the volatility in retail selling prices and help  inventory management.  From a customer point of view, India will be following the global practice,” a petroleum ministry official told Business Standard. 

Before taking the decision on daily revision, the state OMCs did a 40-day run in five cities — Chandigarh, Jamshedpur, Puducherry, Udaipur and Visakhapatnam. They say extensive training of dealers will be held to ensure customers face no pricing misinformation or glitches.

“All the 26,000 Indian Oil dealers will be given timely information on the effective prices at a pre-designated time — say 8 pm for the the next day. At a large number of our 10,000 automated fuel stations, a daily price can be automatically updated centrally. Technology also provides for scheduling of the price change at midnight,” said. At the non-automated outlets, dealers would get the updated price via four means — customised SMS, e-mail, mobile app and web portal.

“This move will ensure the benefit of even the smallest change in international oil prices can be passed down the line to dealers and end-users.,” added.

According to the companies, dealers will ensure price updation at their stations before the start of sale every day, with immediate exhibition. Customers could also get the daily update through the company's mobile app or cross-check for price in their cities by sending an SMS in a prescribed format.