Daily revision of petrol and diesel prices, starting from Friday, at petrol pumps is a market driven process which will benefit everyone in the value chain, an Indian Oil executive said here today.
Last week, the oil marketing companies (OMCs) announced a daily revision of fuel prices starting June 16, saying that the price revision will reflect changes in international oil prices.
"It is a major step towards making the pricing system completely transparent. The system is in line with the international practices and is followed in all advanced economies," stated Rahul Bharadwaj, Executive Director, Indian Oil (Telangana and Andhra Pradesh).
He said this measure will benefit everyone in the value chain as there are no sudden spikes in Retail Selling Price (RSP).
"The final consumer, the dealer and the oil companies- everyone is protected against wide price fluctuations through daily price change,' Bharadwaj said in a statement.
The decision to revise the fuel prices daily followed successful implementation of a pilot project in five cities.
DV Ramana Rao, General Manager (Retail Sales), Telangana and Andhra Pradesh State Office, said the IOC was able to implement the pilot exercise of daily pricing in Visakhapatnam without any difficulty with positive response from dealers and customers.
"With daily pricing, there are no spikes in prices and storage terminals are now able to plan their inventory and ensure smooth supplies," Rama Rao said.
Meanwhile, a Visakhapatnam-based Indian Oil dealer Ravi Baid said he was extremely happy with daily pricing as there is not much variation in prices.
Incidentally, petrol pump owners who had announced strike over daily revision of petrol and diesel prices from Friday today called it off after the government agreed to change the timing to 6 am everyday instead of midnight.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)