Indian government has lifted controls on diesel price control and has raised the cost of natural gas to give market forces a greater sway as it seeks to boost competition, attract energy investment and cut subsidy cost. The move is expected to bring down enormous subsidy bill and revamp the country’s economy. The diesel prices shall be linked to global market prices.
Diesel prices in Delhi have come down by Rs. 3.37 and may accordingly vary in other states. The move is stated of be based on India’s new Prime Minister, Narendra Modi’s vision to make India, also known as Asia’s third-largest economy more lucrative for foreign investors. Speaking more on the occasion, Arun Jaitley, Finance Minister said, “Henceforth, like petrol, pricing of diesel will be market determined.”
Though Diesel is now out of government control, pricing of kerosene and cooking gas shall be under government control. Pricing of gas shall be increased and would be applicable from 1st November, 2014. Moreover, gas prices shall revised two time a year, i.e half yearly – 1st April and 1st October every year.
