The government has agreed in-principle to take diesel out of the administrative price control regime and allow competitive pricing of the popular auto fuel, in a bid to check rising demand and reduce government's subsidy burden.
"Government has, in principle, agreed to make the prices of diesel market determined," minister of state for finance Namo Narain Meena said in a written reply in the Rajya Sabha today.
He didn't give any details of when and how much increase would be effected in prices, but said, for now, diesel will continue to be regulated.
However, even under deregulation, diesel prices will continue to be modulated in order to insulate the common man, he said.
While the government had recently hiked prices of cooking gas, the minister said the government, however, has no plans to deregulate prices of cooking gas.
"There is no proposal at present to fully deregulate cooking gas price," Meena said.