India is experimenting with the idea of linking petrol prices directly to international crude prices. A per the Udaipur Times, the retail prices for both petrol and diesel will be changing daily based on the global price of crude oil.
Five cities have been selected for the pilot project. These are
- Chandigarh
- Udaipur
- Vishakhapatnam
- Puducherry
- Rajkot
The first phase of this model run will be done in Chandigarh because all gas stations are automated. This is expected to result in smoother implementation.
Details about the pricing methodology are not currently known.