Daily fuel prices to vary from pump to pump

LUCKNOW: Friday onwards, consumers will not only see change in petrol and diesel prices everyday but also at every pump.

All three public oil companies—Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum—are ready to launch the daily

fuel

price change from Friday. To keep a tab on daily change in prices, a consumer would get to see the present rate at each pump. Prices might vary by up to 15 paise per litre, based on market forces.

For example, if an oil company has a supply terminal in Amausi, a pump on the far end of the city might charge 5-10 paise more because of the transportation cost involved. Likewise, pumps close to the supply plant might dispense cheaper fuel.

Besides, if a competing unit is selling fuel at a lower price at another place, the oil company might decrease the cost further to survive in a local market. All 6,300

petrol pumps

of UP have been asked to display the daily price change on their notice board at 12midnight.

There are two types of pumps in a city. One kind is the automated pump, where dispensing units are connected with the oil company’s central server. Here, daily price will automatically update at 12midnight. The other type is non-automated, where a dealer has to manually write the daily price change on a notice board.

All oil dealers will receive an alert about revised fuel rates for the next day from oil companies at 8pm daily. They have to update the rate at midnight and follow the same pricing till 12midnight the next day. A consumer can complain against a dealer if the price is not displayed. Under the new method, a consumer benefit from decreasing crude oil prices on the same day.

An oil company official told TOI, “The name and contact number of the oil company’s field officer will be displayed at the petrol pump. If a consumer finds an irregularity in the pump unit or if the pump doesn’t display price change, he can immediately call the field officer and action will be taken in 24 hours.”

In UP, the total consumption of petrol is about 2,450 thousand metric tonne per day. That of diesel is 7,000 TMT per day. The industry contributes about Rs 18,000 crore revenue to the state government per annum.

All you needed to know about daily revision of

fuel prices

:

Q. Where can I see the daily price update?

A. Every pump will have a display board to show daily privce change

Q. How will dealers keep track of daily price update?

A. Oil companies will daily send revised price through SMS, email or app to all its dealers at 8pm.

Q. Why will prices differ from pump to pump on daily basis?

A. Because of market forces like when transport cost is higher or when competition is dispensing at lower prices

Q. What will be the range of variation from pump to pump?

A. The variation would be is 10-15paise/litre

Q. Where can I report about irregularity at pump?

A. One can contact the field officer, whose name and number will be displayed at each pump

Q. What punishment will dealer face if guilty?

A. Dealership can be terminated; heavy penalty or imprisonment might be ordered