New Delhi/October 18 (NG News)
Indian government on Saturday announced to deregulate diesel prices, a move that would result in a price cut of Rs 3.37 per litre but from now, Oil Marketing Companies (OMCs) will become free to determine selling prices of the product in the domestic market.
The decision to deregulate prices of diesel was taken in the Union Cabinet Committee of Economic Affairs that was chaired by the Prime Minister Narendra Modi and approved the issues relating to the under-recovery on sale of diesel and its present status.
“Instructions have been issued today i.e. on October 18, 2014 to make the price of Diesel market determined with effect from midnight of October 18th-19, 2014. The prices of Diesel will be market determined at both Retail and Refinery Gate level for all consumers thereafter,” an Indian government spokesperson said.
Indian Oil Corporation spokesperson said that the International oil prices have been on a steady and steep decline in the last few weeks. The falling international prices of Diesel warrant a decrease in selling price of Diesel in the domestic market. Thus a downward revision in selling price of Diesel is being effected w.e.f midnight.
The movement of prices in international oil market and INR-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in Diesel prices.