New Delhi: Diesel rates, for the very first time in over 5 years, ought to have been reduced by 35 paisa on falling international rates yet oil firms have actually chosen to hold on to the prices pending a government choice on deregulation.
Under-recovery or the distinction in between list price and also its imported price on diesel was 8 paisa per litre in the first one-half of September. The under-recovery in the second half has actually turned into over-recovery or profit of 35 paisa.
The official said Oil Minister Dharmendra Pradhan is in Vietnam on an official tour and a deregulation or freeing of the fuel pricing from government control will be discussed upon his return. Deregulation would give oil companies powers to change rates in tandem with cost like they do in case of petrol since June 2010.
Like diesel, state-owned oil companies have also not changed petrol rates which warranted a 54 paise increase as its benchmark gasoline rates had firmed up in international market. The official said, there are elections in Maharasthra and Haryana and an increase now would not have been a very popular decision,” This is perhaps the first time that retail prices in India are higher than global rates.
A government statement on fortnightly under-recoveries stated that diesel under-recovery has been wiped out and there is over-recovery of Rs 0.35 per litre with effect from September 16.
Bureau Report
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