Daily pan-India fuel pricing from Friday, dealers won't strike on June 16

New Delhi: The hurdles have been cleared for India to switch over from Friday to the daily pricing mode for transport fuels in line with global rates as petroleum dealers have withdrawn their call for closure of vends on June 16. The government agreed to their demand that the price announcement would be daily made at 6 a.m. instead of midnight.

Petroleum Minister Dharmendra Pradhan told reporters here on Wednesday that the dealers were agreeable to the new timing and the countrywide daily revision of petrol and diesel prices from June 16 as decided.

"There were some practical difficulties which we have addressed in our meeting with leadership of all the three petroleum dealers association today (Wednesday). Daily prices will change from 6 a.m.," Pradhan said.

Daily revision of retail selling prices (RSP) has already been implemented on a pilot basis in Udaipur, Jamshedpur, Visakhapatnam, Chandigarh and Puducherry from May 1.

After the success of the five cities pilot, Indian Oil Corp (IOC), Hindustan Petroleum Corporation and Bharat Petroleum Corporation have now decided to implement it across the country.

"This move will ensure that the benefit of even the smallest change in international oil prices can be passed down the line to the dealers and the end-users," Indian Oil said in a statement here.

"Dealers of five cities where it was launched have already burnt their fingers. They are crying at the inventory loss that they have already suffered due to the fluctuations in the daily changing prices," FAIPT said in a statement.

The Indian basket of crude oils closed below the psychologically important $50-a-barrel mark last week as geopolitical tensions in the Middle East raised market concerns.

According to official data, the Indian basket, comprising 73% sour-grade Dubai and Oman crudes and the balance in sweet-grade Brent, closed trade on Tuesday at $47.23 for a barrel of 159 litres.