Ruling out the roll-back of increase in diesel prices, Oil Minister M. Veerappa Moily today said that bulk consumers like railways will have to find their own budget to buy the fuel at market price.

“No, no, there is no question of roll-back,” Moily, who is here to attend the Congress brainstorming session, told reporters.

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 by about Rs 10 for bulk users like defence and railways to cut the subsidy bill.

After including local sales tax or VAT, diesel prices for retail users went up by 50 paisa to Rs 47.65 a litre in Delhi. Bulk users will have to pay Rs 56.88 a litre in Delhi.

Diesel price deregulation

The Government has refused to call back 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 Rs 9 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 NDA,” he said. “(There were demands that) there should be deregulation of diesel and this is the only commodity where we have the regulations.”

(This article was published on January 19, 2013)
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