Dynamic fuel pricing: Dealers feel heat over increased risk, lower profits

Oil firms see no red flags yet; Practice is common globally, but was started in India on pilot basis

A fortnight into public sector oil companies offering dynamic fuel price change at five cities in the country, oil companies see no red flags, but dealers may be already feeling the heat.

State run oil companies have been offering the dynamic fuel price model at five locations-Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam since May 1. Though the practice is common globally, this has been introduced in India as a pilot project in the five locations.

"We have not received any feedback -- both negative and positive. So, it is doing well and also too early. No decision has been taken