Latest Car News in India

Wednesday, April 25, 2012

By Manoj Kumawat

Government mulls deregulating diesel prices

On Tuesday the government repeated that it acceded to “in-principle” to keep the price of the diesel market-determined, which led to ample of altercation from the Opposition. The Opposition was against this decision as they were of the opinion that it will prompt hike in prices. Government was under pressure to free diesel prices in order to help repose the weight of subsidies and brace public finances.


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Minister of state for finance Namo Narain Meena mentioned in the letter, sent in the form of a reply to the Rajya Sabha, that the government has in-principle acceded to keep the prices of diesel market determined. But to shield the common man from the effect of hike in international oil prices and the expected boost in the domestic market, the government will carry on to curb the retail selling prices of diesel. This implies that the diesel price will soon be hiked and it can be announced any day.

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However, there is no suggestion to completely deregulate the cooking gas prices. The Finance minister Pranab Mukherjee also stated that the in-principle decree to deregulate the diesel prices was validated last year in the month of June, but he did not mention if the government would stick to its decision to deregulate the diesel prices. Reacting sharply on this proposal, the BJP and the Left parties opposed the government to decontrol diesel prices and extending the immense pressure to the common man due to the fallacious economic policies.

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Expressing his views over the deregulation of diesel prices by the government, Prakash Javadekar, the spokesman of BJP stated that diesel is a basic fuel which is used for all kinds of transport, he further said that the hike in diesel prices will affect the common man badly. The government however on the other hand is saying that they will regulate the diesel price keeping in mind the needs of the people.

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