Fuel prices to change daily
Cost at pump to fluctuate in tandem with crude oil under new system
Indian state-run oil companies Indian Oil, Bharat Petroleum and Hindustan Petroleum have adopted a dynamic pricing model nationwide, according to media reports.
The move means their gasoline and diesel prices will now change on a daily basis and will be in sync with international rates.
Live Mint reported that India joins countries such as the US and Australia, where diesel and petrol prices move in tandem with the price of crude oil.
NDTV observed that under the new revision system, even the smallest change in international oil prices can be passed down to consumers. Until now, oil companies revised their prices on the 1st and 16th of every month based on the average international crude oil price and foreign exchange rates.
The government-run firms control around 90 percent of the Indian retail market.