govt on deregualtion on diesal prices

Government Against Deregulation of Diesel Prices In Near Future

Neha Sood, Sunday 30th January 2011

Though the Deputy Chairman of the Planning Commission Dr.Montek Singh Ahluwalia favours deregulation of diesel prices,Union Petroleum and Natural Gas minister Jaipal Reddy said that the government has no plans to do so as it is not practically possible. Mr. Reddy said that despite being in agreement with Dr. Ahluwalia\'s suggestion personally, it is not possible to decontrol diesel prices as of now.

Montek Singh Ahluwalia earlier said that he supports deregulation of diesel prices at the World Economic Forum at Davos. He said that it is high time that diesel prices in India should correspond to its international price. Currently diesel in India is available at rates that are much lower than its international value due to high subsidy. The Deputy Chairman of the Planning Commission said that as diesel costs cheaper in India rich people are going for diesel run cars while the common man is bearing the burnt of high petroleum prices.

The minister also pointed out that as India is a democracy only those decisions will be taken that are politically feasible and removing subsidies on kerosene is not practical as the poor section section of the society depends on it.