India cannot deregulate diesel fuel at current prices

Although India’s finance ministry wants to deregulate diesel fuel once international crude oil prices cools off, Minister of State of Petroleum & Natural Gas, R.P.N. Singh said that at current prices, the deregulation of diesel fuel is not feasible. Finance Minister Pranab Mukherjee announced last month that the government had decontrolled petrol. He said that they also want to decontrol diesel fuel, kerosene and LPG. But Singh said, “We will continue to subsidize kerosene and domestic LPG.” (September 5, 2011)