Petrol prices have been cut by Rs1.77 per litre and diesel by 88 paise a litre ever since the daily revision in rates was implemented just over a week back.
Sate-owned oil companies this month dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantaneously reflect changes in cost.
Prices of petrol and diesel have been revised at 0600 hrs everyday since June 16 and the biggest beneficiary has been the consumer.
Petrol price was at Rs65.48 a litre on June 16 in Delhi and today it costs Rs63.71 per litre, according to information available from oil companies.
Similarly, a litre of diesel was priced at Rs54.49 on June 16 but has since dropped to Rs53.61, thanks to the softening international oil prices.
“Previously, the benefit of any decline in international oil prices would have been passed on to consumers only after a fortnight, but now it is instantaneously reflected in the billing,” explained a senior oil company executive.
The previous practice of revision in rate on 1st and 16th of every month, which began with de-regulation of auto fuel on April 1, 2002, was based on average international oil price and foreign exchange rate in the preceding fortnight.
“Many a times, international rates would fall for one week and then rise in the following. So, the net effect of this in the previous price revision policy was status quo or a marginal change in rate. But now, any decline is passed on immediately and the consumer gets the benefit,” he said.