The Oil ministry of India is planning to follow the trend of revaluating monetary value of petrol on a daily basis keeping pace with the value of the rupee against the strong US dollar. The same concept is already being followed in US, Europe and Brazil, wherein the prices of petrol are modified on a daily basis. The Oil ministry is approaching state-run fuel suppliers to revaluate fuel prices every day, in parallel with the global rates and the value of the rupee in the international market.
Reportedly, the same plan of action will be followed in India in a couple of months. Although, the proposal is still in its initial stages, the plan is being discussed at the higher level of the ministry and with fuel supplying corporations. IndianOil Corporation, the country’s largest fuel supplier, has been approached to frame a functional scheme regarding the same. An internal industry source said, “The idea is very much on the high table. But a formal proposal is yet to be drawn up.”
In India, the fuel suppliers revaluate the prices of crude oil every 15th and last day of a month. Considering both the values, the fuel prices are then decided on the basis of petrol’s average regional bulk market price and the value of rupee against that of dollar in the previous fortnight.
The daily revision of petrol prices would definitely make the changes more adaptable for buyers as the fluctuations will be in small amounts. On the part of suppliers, this concept will allow them to pass on the decrease in international rates, without the risk of getting stuck in case the global prices revert back.
