NDA Government has decided to deregulate diesel prices tying it to global prices of oil. From now onwards, prices of diesel would depend on availability of oil in International Market like petrol. It would also ease the Government’s huge subsidy burden. Diesel is essential for Transport sector in the country that linked to determine the prices of essential commodities.
RBI Governor also advised Modi to seize the moment and deregulate the diesel prices. By deregulating on diesel, the price would reduced by Rs. 3.37 per liter. Sudden cut in diesel price by falling the global prices will help ease the inflation which already fallen since last few weeks.
NDA Government has proposed to review on prices of Natural Gases twice in a year. This move is likely to play key role for private companies like Reliance Industries and Essar Oil. Since last January 2013, UPA government increased the rates 19 times that risen 11.81 per liter.
