Decision on Diesel Price Hike At Right Time: Reddy

Discussion in 'Politics & Society' started by Vyom, Jan 9, 2012.

  1. Vyom

    Vyom Seeker Elite Member

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    Oil Minister Jaipal Reddy today said the government will take a decision on increasing diesel prices at an "appropriate time".

    He also said it is difficult to implement deregulation of diesel prices.

    "The price of diesel can be increased only in small installments. Economy is largely depending on diesel price. Any increase in price will have a cascading affect. Therefore, any increase should be done carefully," he said.

    "At the moment the inflation is coming down. Therefore, we will wait for the appropriate moment and will talk to state governments and take decision at appropriate time," he added.

    Replying to a query on deregulation of diesel prices, the minister said it cannot be implemented soon. "It is for for economist to give advice. For politicians, it is difficult to implement," he said

    Reddy also denied that the decision on diesel price hike is linked with the ensuing assembly elections in five states.

    The government had in June 2010 deregulated or freed petrol prices from all price controls, but diesel prices are regulated and are highly subsidised.

    On the payment issue to Iranian oil companies, Reddy agreed that issue is problematic and the government is trying to resolve it.

    "New problems are no doubt arising with the sanctions. However, I would like to assure everybody there will be no supply problems of oil and oil products for the consumers. We are trying to solve the problem of payments to Iran,” he said.

    India gets about three-quarters of its crude needs through imports and Iran is its second-largest supplier after Saudi Arabia.

    Trouble started for Indian oil companies after US President Barack Obama signed a Bill into law late last month empowering US authorities to impose penalties on foreign banks dealing with the Central Bank of Iran to settle oil import payments.

    news.outlookindia.com | Decision on Diesel Price Hike At Right Time: Reddy
     
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  3. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    He is running Indian economy on crutches.
    I do not how he escaped commonwealth scam
     
  4. Vyom

    Vyom Seeker Elite Member

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    The right time will only arrive at the end of elections.
     
  5. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Diseal prices should be de-regulated eventually.
     
  6. sob

    sob Moderator Moderator

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    The other day FM admits that the Fiscal Deficit wil be much higher than what was projected.

    This is only going to worsen the fiscal position. For personal political gains the politicians cannot harm the economic health of the country.
     

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