Petrol and diesel prices will be revised daily from June 16. Oil marketing companies have been changing fuel prices on a daily basis in five cities since May 1. State-run fuel retailers were revising prices fortnightly so far.
India is one of the world's largest crude importers, buying more than two crore tonnes of crude in March alone, according to the data released by the commerce ministry. Fuel prices are based on what is known as the price of the Indian crude basket, which is a combination of Brent and Nymex.
The three state-run fuel retailers--Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. have been revising petrol and diesel prices every 24 hours in five cities, as a pilot project since May 1.
Daily price revisions will minimise volatility in retail prices and increase transparency, said the country's largest fuel retailer IOC, in a media statement filed with the exchanges.
A number of developed countries have already implemented the mechanism of revising petrol and diesel prices on a daily basis, the statement added.
Consumers will be informed about the price on a daily basis through newspapers and petrol pumps will have to display the price, added the statement. Registered mobile phone numbers will also get messages every 24 hours updating the user on the price.
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