In a move that will make you check petrol, diesel prices everyday before refuelling, oil marketing companies are considering a plan that would allow daily changes in the price of automotive fuels in line with international oil prices.
Executives of country's biggest oil marketing company Indian Oil Corp and its two smaller peers Bharat Petroleum and Hindustan Petroleum told The Economic Times that the firms are considering ways to roll out the plan to review petrol and diesel prices daily.
The daily price change also known as dynamic fuel pricing means the companies will not wait for a fortnight to adjust the price of petrol and diesel in tandem with crude price as they do now. Instead, they will change the price everyday based on crude price movements.
This will help India move to an international standard of fuel pricing.
"This will cushion the companies from any loss they face due to currency and crude movements over a 15-day period and will make their margins more predictable," said Dhaval Joshi, analyst with Emkay Global Financial Services.
The move would free private players - Essar Oil and Reliance Industries, which currently follow the price set by state-owned companies, to also shift to a dynamic model.
The state-run companies declined to immediately comment.
(With inputs from Reuters)