Started on May 1st as a pilot project in 5 cities, namely Vizag, Chandigarh, Udaipur, Jamshedpur and Puducherry, fuel prices in these cities will change every midnight to match the fluctuation in global crude oil prices. Daily changes in the fuel price will be reflected on the LED screens plus there shall be a poster both at the entry and exit of the petrol station. Additionally other information such as the retail outlet code, timings and added facilities shall also feature on the LED screens.
How fuel prices shall be computed hereon?
Fuel prices i.e. the price of petrol and diesel which is changed every fortnight i.e on 1st and 16th of every month shall be changed on a daily basis nationwide in case the pilot project meets success. For daily pricing, base price will be at par with the global crude oil price and over and above that Oil Marketing Companies or OMCs would charge for fuel marketing, dealers' commission and taxes. So, a daily change in fuel price shall be reflective of the volatility in the global oil market and US dollar-rupee fluctuations.
Will it be a boon or bane for end-users or consumers?
Let us try and understand it in the following article: To render the newly enforced practice convenient for consumers, Indian Oil Corporation has come up with an app. Fuel@IOC. Also a special dedicated customer helpline number has been rolled out. Consumers just by typing in RSP and the fuel station's retail outlet (RO) code will get the retail fuel price for a particular day on their phone via a message.
Though companies are putting their best foot forward and reeling in all steps to make consumers experience in relation to daily fuel price change cumbersome-free. There are still downsides that shall play heavily; one such is the economic factor, inflation. As any change in fuel price on a daily basis shall also bring about a change in price of other essential commodities cereal, food items, fruit and vegetables that can even be on a daily basis.
Transporters as well as other stakeholders in the industry may also resort to hoarding of fuel factoring in the likely profits due to arbitrage
Also when considering a refueling decision for your vehicle, you will have to now account for daily variations in price that is unlikely to augur well for your commutation related expenses.