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Govt not considering freeing diesel prices: oil sec

Govt not considering freeing diesel prices: oil sec
PTI
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First Published: Mon, Oct 18 2010. 04 34 PM IST
Updated: Mon, Oct 18 2010. 04 34 PM IST
Mumbai:The government on Monday said it would not free diesel prices from its control in hurry as the move would lead to sharp rise in price of fuel most used in the transport sector.
“There is no thinking at this juncture to move any further,” oil secretary S Sundareshan told reporters here.
The government, on 25 June had decontrolled petrol price and had said that diesel would move at free price regime shortly. At that time, an ad-hoc Rs2 a litre increase in diesel price was effected.
“The June decision was taken when crude oil price was at $73-74 a barrel. Sine then it has risen to $82-83 a barrel and it will be unfair to think that diesel price will be market determined at these levels,” he said.
Freeing of diesel prices now would mean a further Rs2.01 a litre increase in rates which will have cascading effect on the already high rate of inflation.
Since 25 June decision, petrol prices have been raised twice ... once in September and second time during the last week to reflect the rising trend in international crude oil prices.
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First Published: Mon, Oct 18 2010. 04 34 PM IST