Diesel price deregulation not now: Oil secretary

October 27th, 2010 - 7:47 pm ICT by IANS  

New Delhi, Oct 27 (IANS) The government is not planning to deregulate diesel price now, as such a move will raise prices and push inflation up, Petroleum Secretary S. Sundareshan said here Wednesday.

“Diesel deregulation at this juncture will lead to an increase in prices,” said Sundareshan on the sidelines of the Economic Editors Conference here.

In June, the government had deregulated the petrol price, allowing oil companies to set their own price based on the international crude rates.

However, the government did not deregulate the diesel price and said it will be done in a phased manner. It had raised diesel prices by Rs.2 a litre at the time.

“The June decision was taken when crude oil price was at $73-74 a barrel. Now it has risen to $82-83 per barrel, so it will be unreasonable to expect the diesel price at this juncture,” said Sundareshan.

– dm/srj

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