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Differential Pricing in Oil Retailing by MRPL: Is Indian Market Ready for it ?

News

State-owned Mangalore Refinery and Petrochemicals Ltd(MRPL) may consider a differential pricing option as part of its fuel retail plans. A dynamic pricing model, wherein consumers pay marginally different rates for fuels such as petrol and diesel in a city.

Source:  Mint

 

SNP Insights

Differential Pricing in the Oil Retail chain will bring dynamism in price of oil. Different prices varying upon different time of day & location of the pump, will raise profit volume of MRPL. Yet for ultra price sensitive Indian market, this dynamic pricing model of MRPL would be like ‘digging its own grave’ or a profitable business proposition , i.e. yet to be witnessed.

Source: SNP Infra Research