State-owned oil firms have opted to revise petrol prices once a month to reflect changes in the global oil market in the free pricing regime. PSU firms also said they would charge uniform prices for petrol.
Indian Oil Corporation said there is no need to increase the fuel prices immediately and all refiners will review prices together.
Petrol prices were freed from government control last month resulting in a Rs 3.50 per litre hike in rates in Delhi, but modalities of subsequent retail price adjustments were left to the industry to deliberate and decide.
Since then Indian Oil, Bharat Petroleum and Hindustan Petroleum had began consultations on modalities like the frequency or interval at which prices will be revised and if the PSUs should have uniform rate that would change on same date.
Most retailers were in favour fortnightly revisions in retail rates to reflect changes in cost of raw material (crude oil), but the nation's largest oil firm IOC was at variance, wanting rates not to be revised too often.
An Empowered Group of Minister headed by Finance Minister Pranab Mukherjee had on June 25 decided to free petrol and diesel prices from government control. While petrol was being decontrolled with immediate effect, the implementation of the same in diesel was put on hold for the time being.
