From today onwards, fuel prices will be revised on a daily basis. But, this will be applied only to selected cities. If it is a succeed, the same rule is going to prevail in the entire country. Like all other markets, the prices will remain synchronized with international rates.
All the state oil companies have recommended this change. A pilot program, to change the prices on a daily basis, will launch. The top three companies in the country own 95% of petrol pumps. All the three have decided to implement this program. Earlier, the prices used to be changed on the 1st and 15th of every month. The prices were determined by the international rates and also by the rates of currency exchange.
Previously, IOC has supplied the rates that were in use at most of the petrol pumps. The differences were only of some paisas. This daily price schedule will cut these little differences between rates of various cities. The Indian Government freed the control on petrol and diesel prices in 2010 and 2014 respectively.
According to the new regulation, the companies have full authority to change the prices. But, they have to coordinate with the government to change the prices. The government may have to face resistance in this daily price variation.
Initially, the cities of Puducherry, Vizag, Udaipur, Jamshedpur, Jharkhand and Chandigarh will implement this new rule. Its success will make it spread all over the country.
The fuel prices have very strong influences on our everyday life. The increases in their prices are significant for the increase in dearness. Irrespective of the class, people are affected by the changes in fuel prices. The world economy is changing continuously, and all these changes influence fuel prices in one way or the other.