Benefits to the consumer in daily pricing change of petrol and diesel:
Theoretically, when daily pricing is made for petrol and diesel, the consumer gets the benefit of price reduction immediately the next day, instead of waiting for the next monthly price change as was earlier.
Disadvantages to the consumer:
1.The benefit mentioned above is just theoretical. But our practical experience is that the oil companies are reluctantto reduce the fuel price . We had experienced this in the last couple of years . Even when the international price came down almost to half, oil companies in India did not reduce price commensurate. They hiked the price in every opportunity, but reduced in just [pittance on a very few occasions. Even in the new mechanism also the oil companies will follow the same pattern and hike the price everyday. So in effect consumer has to go on paying a higher price every next day,
2. We are all experienced to the daily pricing of vegetables , pulses and provisions, There we experience price rise in seasons when supply is less and get reduced pricing when the season is of ore supply. This seasonal variation cannot be expected in the case of oil sector. There it will be just increase only. The oil companies will definitely not pass o any reduction in international prices, but will quote some other reason to keep the price high. So the end effect is ever increasing price of petrol and diesel. daily.
3. Sectors directly linked to the petro/ diesel price will also try to hike the prices(and never reduce) . Indian Railways is a perfect example who did not reduce fare even by a single rupee, but hiked much even when they gained from the oil price.
As a Malayalam saying goes-"Onam pirannalum Unni pirannaalum Koranu kumbilil kanji")- whatever be the situation and change in situation, hapless consumers will only have disadvantages . They will end up paying perennially more, where as the oil companies will enjoy with their profits.
As there are only monopolies in this sector, consumers will not have any say or impact in their pricing.