Soon, petrol prices could be revised daily

Just like in the U.S, Europe and Brazil where petrol prices are revised on a daily basis, a similar concept could be adopted in India in the coming months. The oil ministry is pushing state-run fuel retailers to revise the price every day in tune with the international rates and the rupee's value against the American dollar. 

Thought the idea is still in its first stages, the concept is being discussed at the top level of the ministry and the brass of fuel retail companies. The country's largest fuel retailer, IndianOil Corporations has been tacked to draw up a note on the concept. 

 "The idea is very much on the high table. But a formal proposal is yet to be drawn up," a ministry source said.

In India, fuel retailers retailers review the cost of petrol price on the 15th and on the last day of every month. The price then, is decided on the basis of average regional bulk market price of petrol and the rupee's value against the dollar on the preceding fortnight.

A daily price revision of petrol would certainely make changes more acceptable to consumers as it would be in small doses. It would also allow retailers to pass on the benefit of lower international prices quickly without the fear of getting stuck in case of a rebound in global rates.