Diesel price deregulation not inevitable: Basu

March 3rd, 2011 - 5:22 pm ICT by IANS  

New Delhi, March 3 (IANS) Deregulation in the prices of diesel was not inevitable, chief economic adviser to the finance ministry Kaushik Basu said Thursday, and added that the government may be forced to pass on the increased cost to the consumers due to soaring global crude oil prices.

“Diesel price deregulation is not inevitable,” Basu told reporters at an industry summit organised by the Confederation of Indian Industry (CII), while adding that the government may take the step if crude prices continue to rise.

According to Basu, the diesel pricing issue essentially depends on crude oil prices, which are on the upward swing due to geopolitical crises in the Middle East and North African region coupled with financial instability in Europe.

The petroleum ministry and other government agencies, he said, were of the similar view that prices would have to be deregulated if they hit $150 per barrel from the highs of $115 per barrel recorded earlier.

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