After Chief Economic Advisor, Kaushik Basu pitching for decontrol of diesel prices partially, Planning Commission Deputy Chairman, Montek Singh Ahluwalia, too has opined that fuel price adjustment has to be made ‘at some point of time’ to get investments back.
While, oil marketing companies are free to determine petrol prices, the diesel, LPG and kerosene are sold at subsidized prices. Industry body CII too, has been asking the government to move swiftly to rationalise the prices of these petroleum products, stating that diesel subsidy is doing more harm than good.
The Planning Commission Deputy Chairman, earlier too has stated that there is need to adjust the diesel price and not impose a tax on diesel cars as petrol is priced more or less the way it should be to the refineries but it has a very high tax on it, while diesel is priced too low, but has much lower taxes. As a result, a lot of people who should buy petrol cars are buying diesel ones.
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