The Indian government announced that the fuel prices will be updated daily from mid-June. The fuel prices have increased quite a bit since then and no one has complained. Why? Because daily price revisions in small amount do not affect the customers too much.
According to ET Auto, the petrol prices have gone up by Rs. 6 per litre since the beginning of July. The diesel prices have been up by Rs. 3.67 per litre since the same time. The petrol prices are the highest in last three years while the diesel prices are highest in last four months. Petrol now costs Rs. 69.04 per litre, which is highest since August 2014 when it was priced at Rs. Rs. 70.33.
The fuel prices are now revised every 6:00 AM instead of the 15-year old practice of revising rates on 1st and 16th of every month.
A senior oil company executive said to ET Auto.
“Previously, everybody felt the pinch when rates would go up by Rs 2 or 3 per litre in one go. Now they are being increased by 1 paisa to 15 paise a litre every day, hikes that have largely gone unnoticed,”
“Many a time, international rates would fall for one week and then rise in the following. So, the net effect of this in the previous price revision policy was status quo or a marginal change in rate,”
The daily revision is dependent on the international fuel price change. Earlier, the petrol was priced at Rs. 65.48 in Delhi while the diesel was priced at Rs. 54.49 on July 16.
The prices have also come down in between but overall prices remain much higher than what it used to be when the daily revision kicked in.