‘Dynamic pricing applicable on 28 filling stations in city area’
Udaipur : Udaipur is among the five cities of the country including Puducherry, Visakhapatnam, Jamshedpur and Chandigarh where fuel prices would change daily from Monday onwards. The dynamic pricing system would be applicable on 28 fuel stations situated within the municipal limit. There are 12 fuel stations of the Bharat Petroleum Corp Ltd and 8 each of Indian Oil Corp Ltd and Hindustan Petroleum Corp. Ltd. Retailers at these outlets were busy with the preparations of fixing display boards at the pumps for daily price updation. Apart from the display boards, the customers would also get to know about the daily prices through SMS. Mobile numbers would be displayed at the fuel stations and the people can send SMS to those numbers to know fuel price for the day. “ The retailers would be informed of the revised price every night through automation machines which would reflect on the display boards at the fuel stations” an officer of the BPCL said.
The dynamic pricing system is a pilot project which if proves successful in these cities, would be implemented nation-wide. Presently fuel retailers-IOCL, BPCL and HPCL revise petrol and diesel prices on the 1st and 15th of every month based on average international price of the fuel in the preceding fortnight and the currency exchange rate.
The dynamic pricing is speculated to be beneficial for the customers. “ It would benefit the customer by preventing sudden shocks and volatility and on the longer-term it would be a zero-sum game for them” an official said. “With the new system launched, there may be minor variation of prices , say 15 to 25 paise on daily basis. The customers would hardly mind these changes because when the price updation is on a fortnightly basis, the effect counts in 2-3 rupees which hits them hard” says Kuldeep Singh, a petrol pump manager in the Hiran Magri area of the city. However, the dealers are not happy with the new system as they fear it would eat their margins. “ When it was fortnightly pricing, dealers used to take maximum and minimum stocks depending on the prices which will not happen now” an HPCL officer said. Internet connectivity is seen as another hindrance in the smooth functioning.