Diesel price deregulation News

If rates are slashed, it will be the sixth consecutive reduction in petrol prices since August and the first cut in diesel rates ever since government deregulated diesel prices this month.

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.

The government's decision to deregulate diesel will be advantageous for consumers, Essar Oil said on Saturday.

The government on Saturday deregulated diesel prices, a move that will result in a price cut of Rs 3.37 a litre with effect from midnight.

In a major reform push, the government on Saturday deregulated diesel prices but hiked natural gas tariff by 46 percent that will push up fertiliser, power, CNG and PNG rates.

In a bold reform decision, the government on Saturday decided to deregulate the price of diesel with immediate effect, leading to a fall of Rs 3.37 per litre with effect from midnight tonight.

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.

India will decide on whether to end government control of diesel pricing after elections in two states next month, an oil ministry source said.

Under-recovery or the gap between retail selling price and the cost of import, this month dipped to an all-time low of 8 paise a litre.

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.

After dipping to the all-time low, losses on sale of diesel have risen to Rs 1.78 per litre, delaying the prospect of deregulation of the nation's most consumed fuel.

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.

Moody's expects the new government to increase the retail selling prices of controlled fuel products-- kerosene and liquefied petroleum gas (LPG) -- to help control its subsidy burden.