After diesel, petrol, government planning daily price revision for CNG

The government is planning to roll out daily price revision of CNG similar to what the oil companies have been doing to decide on the prices of petrol, diesel. Currently, price of CNG is revised monthly.

India Oil Corporation (IOC) CMD Sanjay Singh confirmed the news to India Today that petroleum companies are in the process of revising CNG price on a daily basis.

Petroleum companies had last month decided that petrol and diesel prices would be revised on a daily basis in select towns in sync with international rates similar to what happens in most advanced markets.

State-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL), which own more than 95 per cent of the nearly 58,000 petrol pumps in the country, launched a pilot for daily price revision in five select cities last and plan to gradually extend it to other parts of the country.

While petrol price was freed from the control of the government in June 2010, diesel rates were deregulated in October 2014.

Technically, oil companies have freedom to revise rates but often they have been guided by political considerations. Rates differ by only a few paise between pumps of the three state fuel retailers.

With daily changes, which are unlikely to be more than a few paise per litre, the political pressures for not revising rates particularly when they are to be hiked will go, people in know of the matter said.

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