The petrol rates as on today in Mumbai is 76.66 INR. The revised prices which also include international crude oil prices, INR-USD exchange rates have been affected from today, 13-12-2017 from 6AM. Price revision of fuel of this kind is seen in state owned fuel retailers such as Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Essar oil and Shell India. The cities that witness major fluctuations in fuel price are Delhi, Mumbai, Kolkata, Chennai, Bangalore, Pune and Hyderabad. Brent hitting a major USD 65 per barrel, despite crude prices bypassing 2 year highs, India is not having it’s petrol and diesel prices hiked as of this election season.

Election Effect

The daily oscillation in fuel prices, which is considered one of the boldest initiatives by Modi government has not got the fuel prices inflated due to Gujarat elections. This time, even the Oil Manufacturing Companies have skipped the monthly LPG price hike in the 1 year 5 month time span. This is going to be an interim relief for the consumers but the Oil Manufacturing Companies may have to go through adverse repercussions. This populous move has happened due to the Gujarat Polls which is going on.

Price Hike

Fuel prices as we know are a politically sensitive topic. Few months ago, Oil Manufacturing Companies had hiked its rates in the market. The decreased price rates will have a brunt on Oil Manufacturing Company’s business but the loss will easily be recovered in the year 2018. The Oil Manufacturing Companies will increase their rates post the polls are completed.

Manufacturing Methanol

The Government is looking forward to allowing blending of methanol with petrol to minimize prices and control pollution. The Government is making efforts to framing policies which will have petrol having blended with 15 per cent of methanol and which also will not harm the environment. This initiative, though is genuinely being made to bring pollution and prices in control, the execution exercise has to be done with meticulous attention and care as methanol is a by-product of coal and the emissions during the process of production can be high, thereby having the intent of cleaner fuel become void. Methanol which is blended in petrol is currently in circulation in some states but not being practiced pan India. The oil refineries will be asked by the respective authorities to expand the methanol production in a way that will help retailers to make the combination of fuel available throughout the country. Currently, Mumbai has a few factories that are capable of generating methanol.

Current Practices

Automobile giant, Volvo also has introduced an new engine that runs solely on methanol, which will also power a pilot project of 25 buses running on it. In order to curb pollution, automobile companies would require to have their car engines manufactured/tweaked in such a way that the fuel lines, gaskets and other internal parts are equipped for methanol blended fuel. Though there is some more time in transitioning to BS-VI compliant fuel throughout the nation, this initiative will help in reducing the process of petrol and minimize pollution.

The state-owned oil marketing companies – Indian Oil, Hindustan Petroleum Corporation and Bharat Petroleum Corporation have formulated a daily dynamic pricing mechanism for petrol and diesel since June 16 and this daily price tweaking has made India join the bandwagon of nations like United States of America and Australia which are countries that have their petrol prices revised regularly.
Petroleum and Natural Gas Minister Pradhan recently tweeted: “Proud to share that India is the first country to switch to dynamic fuel pricing on such a large scale in one go.”