Fuel demand grows 5.4 percent in May; petrol, diesel sales surge

Fuel demand grows 5.4 percent in May; petrol, diesel sales surge

Daily fuel price revision was implemented in five cities - Chandigarh, Udaipur, Jamshedpur, Puducherry and Visakhapatnam, as a pilot project.

In a bid to counter undercutting by private retailers and to bring India at par with the USA oil market, state-run fuel retailers will revise petrol and diesel prices daily from June 16 across the country.

In the run up to the implementation of the new system at 54,000 petrol pumps across the country, the oil marketing companies have stepped up efforts for its smooth roll-out. Currently, retail fuel prices are revised fortnightly. Additionally, technology is also available to schedule the revised prices for 12 AM.

OMC sources, however, said dealers will be able to manage inventory better as increase or decrease in buying pattern at the end of the fortnight depending on market perception of upcoming price trend in prices can be avoided. Simultaneously, IndianOil said it will provide extensive training to dealers and their staff.

At the non-automated petrol pumps, dealers would be updated of the price through SMS alerts, e-mails, mobile app and a web portal. The company has taken steps to ensure all its petrol pumps display the dealer code prominently. Since early May the big four have embarked on a series of forecourt price reductions, with the average cost of petrol dropping almost 2 per litre to 116.72p and diesel falling 2.5p to 117.75p by the end of the month. "Updated prices will be immediately exhibited at all petrol pumps for information of the public", the statement added. More than 26,000 Indian Oil dealers will be given timely information on the effective prices at a pre-designated time - say 20:00 hours for the next day. According to an industry source who did not want to be named, daily pricing can be easily implemented and beneficial for private companies as their fuel outlets are master-controlled by companies themselves.

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