Diesel deregulation News

Key oil and gas sector reforms like diesel deregulation and a new gas pricing policy will have a positive impact on companies engaged in fuel retailing and gas production, says a report by Fitch Ratings.

Maruti Suzuki is expecting a shift towards petrol vehicles with the recent deregulation of diesel by the government.

Tata Motors and Nissan Motor India, besides automobile industry body SIAM, Tuesday welcomed the government's move to deregulate diesel prices in the country.

The decisions to deregulate diesel prices and hike the natural gas prices are "credit positive" as it would bring in fiscal discipline, ratings agencies Moody's said on Tuesday.

RBI may cut rates 2-3 quarters ahead of consensus expectations on the back of these developments, says Motilal Oswal.

The government may soon deregulate the diesel market so that it no longer needs to subsidise state-run refiners for selling the fuel at below-market prices.

Diesel rates were last cut on January 29, 2009 when they were reduced by Rs 2 a litre to Rs 30.86.

As the fall in international oil rates brings domestic diesel retail price at par with cost, the Oil Ministry has not yet moved Cabinet for deregulation of the nation's most consumed fuel.

Oil Ministry will seek Cabinet nod for freeing diesel prices after retail rates achieve parity with global levels, and has proposed to cut subsidy payout by upstream firm like ONGC by half.

Oil Ministry will approach Cabinet regarding the possible deregulation of domestic diesel pricing as local prices could soon reach parity with global levels, two ministry sources have said.

The deregulation of diesel prices would not affect much the demand on the variants as the customers still go for diesel cars across the country, a top official of Fiat Chrysler India, said on Friday.