Oil ministry seeks Cabinet’s permission to deregulate diesel prices

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Apart from you monthly fuel bills, diesel price hike has a severe impact on the prices of other goods too, as the transportation cost increases in the process. Although the government has put a system in place where diesel prices are raised by 50 paisa per litre every month, the Oil Ministry is planning to make things even uglier. Impatient to go the whole hog all at once, our dear minsters are planning to deregulate the price mechanism for the dirty fuel in one shot.

So you’d be better off asking for a good salary increment, as diesel prices are expected to shoot up in the coming days. The Oil Ministry has asked for Cabinet nod in order to free diesel. Another proposal is to cut subsidy payout by upstream firm like ONGC by half.  The Oil Ministry is also proposing that the fuel under-recovery be split equally between the government and upstream firms.

As things stand, the state fuel retailers are suffering heavy losses. Or so we are told. The losses are recovered through cash subsidy and discounts on crude from upstream firms like Oil and Natural Gas Corp (ONGC). Again, that the story we are all supposed to believe without asking any questions.

No need to make a quick dash to the nearest fuel bunk as you read this, as the prices will not be hiked immediately. However, brace yourselves for a substantial hike over a period of time, just the way the prices of petrol spiralled into stratosphere overnight.

So what do you think? Is the government justified in taking a hasty call to increase diesel prices? Tell us your opinion through comments below.

Stay tuned to Motoroids for all the updates from the auto world.

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