Further decontrol over petrol and diesel prices in India has begun with oil companies like Indian Oil Corporation announcing a pilot project where prices of these two fuels will change on a daily basis based on their international prices. 

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The move came in effect on May 1, 2017 where prices of petrol and diesel will change each day in Chandigarh, Jamshedpur, Puducherry Town, Udaipur and Vizag. IOCL said, "Daily revision of prices of Petrol and Diesel is being implemented on pilot basis, in the cities of Chandigarh, Jamshedpur, Puducherry District, Udaipur and Vizag w.e.f 1st May 2017."

"The current level of international product prices of Petrol & Diesel and INR-USD exchange rate warrant increase in selling price of Petrol and Diesel, the impact of which is being passed on to the consumers with this price revision," it said. 

The company raised petrol and diesel prices by Re 0.01 per litre and Rs 0.44 per litre, respectively. 

This is how petrol prices will be calculated each day in these five cities: 

Currently, oil companies in India revise petrol and diesel prices every fortnight based on internatonal crude oil prices. 

Ministry of Petroleum and Natural Gas, on May 1, 2017 said, "The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 50.43 per barrel (bbl) on 28.04.2017. This was higher than the price of US$ 49.94 per bbl on previous publishing day of 27.04.2017."

In rupee terms, the price of Indian Basket increased to Rs. 3238.18 per bbl on 28.04.2017 as compared to Rs. 3201.83 per bbl on 27.04.2017. Rupee closed weaker at Rs. 64.22 per US$ on 28.04.2017 as compared to Rs. 64.11 per US$ on 27.04.2017.