No roll-back of increase in diesel prices: Moily
The government had two days back raised diesel prices after a gap of four months by a marginal 45 paise per litre for retail users, like car and truck owners, and hiked the rate for bulk users, like defence and railways, by about R10 to cut subsidy bill. After including local sales tax or VAT, the price of diesel for retail users went up by 50 paise to R47.65 a litre in Delhi.
Bulk users, which consume around 17.77% of the total diesel sales in the country, will pay R56.88 a litre in Delhi. The government has refused to call its January 17 decision deregulation even though it has permitted oil companies to raise diesel prices by the same quantum from time to time till the over R9 per litre loss on the fuel is wiped out.
Moily said diesel and petrol had been deregulated by the BJP-led NDA government in 2002, but the UPA government had continued to subsidise diesel, the nation’s most consumed fuel. “This (deregulation) has been going on even during the days of the NDA,” he said. “(There were demands that) there should be deregulation of diesel and this is the only commodity where we have the regulations.”
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