NEW DELHI: The government on Saturday deregulated diesel prices, a move that will result in a price cut of Rs 3.37 a litre. Finance Minister Arun Jaitley said the Cabinet in its meeting decided to deregulate diesel prices and that the retail rates will now reflect international movement in oil prices.
Diesel prices were last raised by 50 paisa on September 1 and cumulatively rose by Rs 11.81 per litre in 19 instalments since January 2013.
The price of Brent crude or crude that Indian refiners import has fallen by 25 per cent this year to around $83 per barrel and it is unlikely that it may cross $100 barrel anytime soon giving much needed respite to truckers and transporters. The move is likely to ease inflationary pressures that besiege the economy now.
The process to wipe off the subsidy on diesel was set in motion by the erstwhile Congress-led UPA-II Government when it eliminated controls on petrol prices in 2010 and in January last year decided to raise diesel price by up to 50 paisa a litre every month.