Are oil marketing companies shifting to alternate day fuel price revision mechanism?, Auto News, ET Auto

NEW DELHI: Oil advertising and marketing firms seem to be to be shifting to a revised gasoline price revision mechanism, shifting to the practice of switching petrol and gasoline fees each individual alternate working day somewhat than undertaking modifications on a day-to-day foundation.

In the last number of times, pump prices of petrol and diesel have been revised each individual alternate working day but the practice experienced not aided buyers as even underneath this procedure prices have only moved up making the gasoline dearer.

On Monday, OMCs kept retail price of petrol and diesel unchanged. So petrol continue to charges Rs ninety two.58 for every litre and diesel Rs 83.22 for every litre in Delhi, the very same as former working day.

Throughout the country as very well, the petrol and diesel price prices remained static on Monday but its true retail prices assorted dependent on the level of local levies in respective states.

The price pause on Monday came immediately after petrol and diesel prices were raised by 24 and 27 paise for every litre, respectively, on Sunday. Prior to Sunday, there was no price revision on Saturday. Likewise, although gasoline prices were raised on Friday, it remained unchanged in the former working day.

“It appears to be oil firms are offering a sense of reduction to buyers as gasoline prices are not getting raised on a day-to-day foundation. But continue to prices are not essentially falling but getting raised on quite alternate working day far too this month,” said an oil sector skilled not eager to be named.

He said that the practice of day-to-day price revision, started off immediately after deregulation of petrol and diesel prices number of many years experienced been done away by OMCs for past quite a few months offering clear indicator that administrative price routine is continue to working for the sector.

Under day-to-day price revision, OMCs revised petrol and diesel prices each individual early morning benchmarking retail gasoline prices to a fifteen-working day rolling average of worldwide refined products’ prices and dollar trade level. Even so, in a market where by gasoline prices need to have to be greater successively, alternate working day price revision appears to be to be the flavour.

It is truly worth noting that with nine price improve in May, the retail price of typical petrol has currently arrived at nearer to Rs 99 a litre in Mumbai. Petrol prices are currently more than Rs 100 for every litre in quite a few cities in Madhya Pradesh, Rajasthan and Maharashtra. Top quality petrol has been hovering over that level for some time now.

Petrol prices have greater by Rs two.03 a litre Delhi in May in the 9 increases so far. Likewise, diesel prices have risen by Rs two.forty nine for every litre in cash this month.

IANS experienced documented earlier that OMCs may possibly get started escalating the retail price of petrol and diesel submit condition elections as they were incurring losses to the tune of Rs two-3 for every litre by keeping the price line irrespective of better worldwide crude and products prices.

With worldwide crude prices at all around $ 69 a barrel mark, OMCs may possibly have revise gasoline prices upwards all over again if there is any even further firming up.