A week after daily price revision policy, petrol/diesel prices dip
Earlier state-owned oil companies revised fuel prices on 1st and 16th of every month, therefore, consumers didn't get the immediate benefit of any decline in international oil prices.
Now, thanks to the daily price revision policy adopted by them, petrol prices have witnessed a cut of Rs. 1.77 per liter and diesel prices around 88 paise a liter, say reports.
Here's all about it.
Petrol/diesel prices fall, consumers now get immediate benefits
What has changed?
With the new policy, the state-owned oil companies have given up the 15 year old practice. Earlier, consumers would get the benefit of a decline in international oil prices only after a fortnight.
From June 16 they've implemented a dynamic daily price revision policy, under which prices are revised at 6:00 am every day, so the consumers get benefits almost instantaneously.
At the moment
Today in Delhi, reportedly, a liter of diesel costs Rs. 53.61, down from its June 16 cost of Rs. 54.49 a liter and a liter of petrol's price stands at Rs. 63.71, coming down from June 16 price of Rs. 65.48 a liter.
This change was brought about by the softening of international oil prices, which got immediately reflected in the daily price revisions.
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A word of caution
As per reports, with the advent of this new policy, petrol prices have been slashed every day ranging from 11 to 32 paise per liter and diesel prices between 2 to 18 paise a liter.
However, it's to be remembered that when international oil prices rise, the daily revisions would reflect the rise immediately too.
Benefits of the new policy
This daily revision eliminates the big rate changes that had to be carried out every fortnight to get prices in sync with international oil prices and makes consumers more aligned to the market dynamics.
The policy was initiated after a successful pilot in five cities; although petrol pump owners objected initially saying that daily change would affect their business routine, they finally came around.
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