Diesel Prices deregulated, go down by Rs 3.37 rupees per litre

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New Delhi, Oct 19: Just like petrol prices, the diesel cost will not be governed by the government any more. The decision was taken by the Union Cabinet at a meeting yesterday. With the announcement, the prices were cut by Rs. 3.37 rupees a litre following the fall of global oil prices.

While announcing the decision on diesel price deregulation Finance Minister Arun Jaitley said: "Price of diesel will be linked to the market, and therefore, depending on whatever is the cost involved, is the element that consumers will have to pay." Petrol prices were deregulated in June 2010 but subsequent price revisions by the three state-run oil MARKETING companies (OMCs) have been done in a guarded manner so as not to stoke inflation.

The decision drew mixed response from people across the country on Saturday. Many opined that the decision taken by the government was not good. "Our economy depends a lot on diesel price. If the government doesn't have control on the diesel price then there is a possibility that the prices of other commodities might go up. This will have adverse effect on the prices," said Narmada Panda, a resident of Bhubaneswar.

However, few have welcomed the move saying that the common man will be benifited as the prices were cut by Rs. 3.37 rupees a litre. The middle class people, who wanted to buy a car, can now afford this after the prices were slashed. If the prices goes up in future, it will put extra burden on the car owners.

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