Diesel price may be deregulated over next 12 months: Moody's
02/07/2014 16:44
Diesel prices are likely to be completely deregulated over the next 12 months as monthly increase in rates bridge the gap between cost and retail price, rating agency Moody's said today, reported PTI. Moody's expects the new government to increase the retail selling prices of controlled fuel products - kerosene and liquefied petroleum gas (LPG), to help control its subsidy burden, as per the media reports. According to media reports, the government, in its view, is most likely to go for staggered increases, similar to the ongoing 50 paisa per litre hike in diesel prices every month. This is because, while a one-time price increase will have a more immediate impact on reducing the burden, it would also be more challenging to push through, given the need to control inflation, as per the reports in the media. "We also expect the government to be in a position to completely deregulate diesel prices over the next 12 months, as retail prices move closer to international market rates," said Vikas Halan, Moody's Vice President and Senior Credit Officer.
02/07/2014 16:44
Diesel prices are likely to be completely deregulated over the next 12 months as monthly increase in rates bridge the gap between cost and retail price, rating agency Moody's said today, reported PTI. Moody's expects the new government to increase the retail selling prices of controlled fuel products - kerosene and liquefied petroleum gas (LPG), to help control its subsidy burden, as per the media reports. According to media reports, the government, in its view, is most likely to go for staggered increases, similar to the ongoing 50 paisa per litre hike in diesel prices every month. This is because, while a one-time price increase will have a more immediate impact on reducing the burden, it would also be more challenging to push through, given the need to control inflation, as per the reports in the media. "We also expect the government to be in a position to completely deregulate diesel prices over the next 12 months, as retail prices move closer to international market rates," said Vikas Halan, Moody's Vice President and Senior Credit Officer.
