The Modi government has decided to continue with the practice of raising diesel price in small doses every month to wipe out losses, signaling bigger reforms in the pricing of motor and kitchen fuels in a throwback to the days of the Vajpayee government.
State-run fuel retailers raised diesel price by 50 paise a litre, excluding VAT, marking the 15th revision since the practice began in January 2013. Petrol price was left unchanged.
The decision to deregulate fuel prices was taken by the UF government. The decision was implemented in 2002 by Ram Naik, the oil minister in the Vajpayee government. But in 2004, Mani Shankar Aiyar, Naik's successor in UPA-1, succumbed to Left pressure and reimposed government control on fuel pricing.
The Modi government looks set to take the reforms further. One of the steps would be to help private retailers to revive their outlets. This would create jobs and usher in competition.
State-run fuel retailers raised diesel price by 50 paise a litre, excluding VAT, marking the 15th revision since the practice began in January 2013. Petrol price was left unchanged.
The decision to deregulate fuel prices was taken by the UF government. The decision was implemented in 2002 by Ram Naik, the oil minister in the Vajpayee government. But in 2004, Mani Shankar Aiyar, Naik's successor in UPA-1, succumbed to Left pressure and reimposed government control on fuel pricing.
The Modi government looks set to take the reforms further. One of the steps would be to help private retailers to revive their outlets. This would create jobs and usher in competition.
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