The pricing system is aimed at capturing even the smallest change in international oil prices and passing it on to consumers, according to the oil ministry.
First of all, the new prices will become effective 6 am every day. Earlier, the decision was to change them at midnight. The oil companies were forced to change this after pump owners threatened to protest and go for a strike. The reason for their grudge was that the companies have not put in place automatic systems to change the price and so it required manual deployment.
Today Petrol Diesel Price in India Petrol and diesel rates were cut today as part of a new system of daily price changes in petroleum products, in a shift from fortnightly price revisions. Under the new revision system, even the smallest change in international oil prices can be passed down to consumers. Till now, three PSU oil marketing companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum – revised the prices on the 1st and 16th of every month based on average international crude oil and foreign exchange rates. Indian Oil has said the daily price revision is an initiative to ensure the best possible prices to the customers as well as improved transparency in the pricing mechanism.