Policy Regarding Determining Prices of Petrol and Diesel
The Minister of State for Petroleum & Natural Gas, Shri Jitin Prasada stated in the Rajya Sabha in a written reply today that petrol is now a deregulated product, the oil companies/refineries are free to decide the pricing mechanism at the refinery gate depending upon market conditions and commercial considerations. Presently, the refinery gate pricing of diesel is based on he trade parity principle.
The house was also informed that the Government had constituted an expert group, under the chairmanship of Dr. Kirit S. Parikh, to advise on a Viable and Sustainable System of Pricing of Petroleum Products. In the light of the expert group’s recommendations, the Government made the price of petrol, both at the refinery gate and at the retail level, market-determined with effect from 26th June, 2010. the Government has also taken an ‘in principle’ decision that the price of diesel will be made market determined, both at refinery gate and retail level. However, Government has initially increased the retail selling price of diesel by only Rs. 2/- per litre with effect from 26th June 2010 (at Delhi), with corresponding increases in the rest of the country.
AKT/DT