The under-recoveries on account of subsidy had bleed PSU oil companies, while shutting the oil marketing for private players.

State-owned oil marketing companies have decided to switch over fully-market determined prices for petrol and diesel prices across the country from June 16.

After this, the domestic fuel price would change depending upon international prices and rupee’s valuation. Currently, fuel prices are revised on 1st and 16th of every month.

This decision could be considered a landmark in the country, where fuel subsidy was considered to be politically-sensitive issue. The under-recoveries on account of subsidy had bleed PSU oil companies, while shutting the oil marketing for private players.

Daily change, which won’t be more than a few paise, may not feel pinch customers.