Petrol pricing in India

People are very pretty sensitive about fuel prices as they are directly linked to the commodity. Earlier these prices were changes fortnight based on the average price of crude oil and foreign exchange rate of the preceding 15 days. But from the beginning of 16th June last year, all petrol pumps across the country have been changing their petrol and diesel prices each day based on market prices of crude oil (international) and foreign exchange rates. But in many instances, the old price system s have failed to change proportionally with the rise and fall in international crude oil prices due to political intervention. So in order to find the need for shifting to daily fuel price change model, one has to understand the dynamic of petrol pricing in India. Though the union government deregulated the petrol price in 2010 and diesel price in 2014, which allowed old marketing companies to decide on the prices of fuel., according to the change in international oil prices based on the currency exchange rate. But, the state owned oil marketing firms Indian Oil Corp., Bharat Petroleum Corp and Hindustan Petroleum Corporation were not allowed to raise prices in the state or national election in order to avoid peoples anger. But to compensate the oil companies, the government allowed them to change higher prices even the international oil rates have fallen.