- Daily price revision has already been implemented in five cities
- IOC said it will make retail prices more reflective of market conditions
- Petrol and diesel prices are currently determined by global crude prices
Currently, the state-run oil marketing companies - Indian Oil, Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) - revise retail fuel prices after every fortnight on the basis of global crude oil prices.
Indian Oil said daily revision in oil prices will make retail prices more reflective of the current market conditions, besides leading to increased transparency in the system. This, country's biggest fuel retailer said, will enable smoother flow of products from refinery/depots to the retailers.
It said many developed countries are already revising prices of petrol/diesel on a daily basis.
The prices are expected to change every day at midnight, following directives by the Petroleum Ministry, news agencies said, citing sources.
State-run oil companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - operate 90 per cent of the retail outlets in the country.
Petrol and diesel prices are currently determined by global crude prices and the value of the rupee against the dollar as India imports bulk of its energy requirement.
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