The Petroleum and Natural Gas Ministry is giving the final touches to the formula for the State-run oil marketing companies (OMCs) to put in place a new pricing regime for petrol that was de-controlled last month.
Officials in the Ministry said that consultations had been held with the private oil companies and also the OMCs, and now the Ministry was finalising the new pricing policy for petrol.
The issue of decontrol of diesel and a pricing policy for it would be taken up at a later stage, they said.
Ministry sources said that State-run Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited will jointly take a decision on any kind of revision of petrol prices under the formula adopted by the Ministry.
The OMCs are in favour of revising petrol prices every fortnight in the free pricing regime. Petrol prices were freed from government control last month, resulting in a hike of Rs.3.50 per litre in Delhi. Though diesel prices were raised by an ad-hoc Rs. 2 per litre, it continues to be under government control.
“There is no sense in State-run OMCs competing among themselves if only petrol prices are being freed. Therefore, it was decided that OMCs will continue to coordinate on the pricing of petrol,'' the official said.
Stating that the modalities are likely to be finalised this week, officials said the pump rates may be revised at least once this month. The three companies would have a uniform rate for petrol in particular cities or locations, and it would change on the same dates.
Petroleum Secretary S. Sundareshan said the change needed in the retail selling price of petrol would be known on July 15, based on the average cost of oil in the first fortnight, and the modalities would then follow.
“The OMCs have been consulting among themselves and now discussions would be held at the Ministry level. Very shortly, modalities like frequency of price changes will be announced,'' he said.
The aviation turbine fuel (ATF) price, which was freed from government control in 2002, is revised with cost every fortnight.