The government must take advantage of the lowest oil prices in a year to deregulate diesel,
RBI Governor Raghuram Rajan said today.
Brent crude, a benchmark for Asian and Indian buyers, has fallen 14 per cent since June to USD 96.38 per barrel. This together
with monthly price increases of up to 50 paisa a litre has trimmed losses on the nation's most consumed fuel to just 8 paisa
per litre.
"Lower crude oil prices are helping consuming countries like us. Typically a lower oil price means a lower CAD, lower oil subsidies and
lower inflation. We need to seize this moment to eliminate diesel subsidies completely. We should take this moment to eliminate diesel subsidies as soon as possible," Rajan told a
banking summit here.
The next revision in diesel prices is due this month-end and going by the present trend the under-recovery or the difference between the imported cost and the retailing selling price, will be wiped out with a minimal hike.
Even after the under-recovery is wiped out,the Cabinet has to approve de-regulation or freeing of diesel prices. This will empower the oil companies to change rates in tandem with cost like they do in case of petrol since June 2012.
Read more at: http://m.financialexpress.com/news/free-diesel-prices-at-the-earliest-rbi-guv-raghuram-rajan-tells-centre/1289303
RBI Governor Raghuram Rajan said today.
Brent crude, a benchmark for Asian and Indian buyers, has fallen 14 per cent since June to USD 96.38 per barrel. This together
with monthly price increases of up to 50 paisa a litre has trimmed losses on the nation's most consumed fuel to just 8 paisa
per litre.
"Lower crude oil prices are helping consuming countries like us. Typically a lower oil price means a lower CAD, lower oil subsidies and
lower inflation. We need to seize this moment to eliminate diesel subsidies completely. We should take this moment to eliminate diesel subsidies as soon as possible," Rajan told a
banking summit here.
The next revision in diesel prices is due this month-end and going by the present trend the under-recovery or the difference between the imported cost and the retailing selling price, will be wiped out with a minimal hike.
Even after the under-recovery is wiped out,the Cabinet has to approve de-regulation or freeing of diesel prices. This will empower the oil companies to change rates in tandem with cost like they do in case of petrol since June 2012.
Read more at: http://m.financialexpress.com/news/free-diesel-prices-at-the-earliest-rbi-guv-raghuram-rajan-tells-centre/1289303
