Diesel Prices Drop By Rs 3.37; How will they affect us?

Good news for diesel car owners, as the government has deduced the price of diesel by Rs 3.37/litre. With Diwali festival around, it seems like Acche Din are finally here. In a bold step to revive the degrading economy, NDA government has deregulated the prices of diesel and created a price formula for natural gas. With deregulation in action, diesel price will now depend on the global crude prices. After the reduction, diesel price in Delhi stands at Rs 55.60 per litre. 

We earlier reported that government is planning to deduct the prices of petrol and diesel and are just waiting for the assembly election in Maharashtra to get over. After the Cabinet meeting, Finance Minister Arun Jaitley announced that government has deregulated the diesel price and just like petrol, the prices will depend on the international crude prices from hereon. 

How will the diesel deregulation affect us?

• First of all, reduced diesel prices will directly lower the monthly budget of diesel car owners.
• Since most the agricultural equipments (tractors, harvesters and water pumps) run on diesel, and diesel getting cheaper will eventually helps in bringing the price down.   
• The whole transport industry (trucks and buses) runs on diesel and with pricing going down, food prices and travel fares are expected to go down. 
• Government's subsidy bill will be go down to Rs 22,000 crore as last year govt. paid Rs 85,000 to compensate oil companies while for this year it is expected that govt will pay Rs 63,000 crore. 
• Moreover, some analysts also believes that govt can further save Rs 10,000 crore which can be further used in the development of country. 
• More competition further results in lower prices. With deregulation in effect, private oil companies like Essar Oil, Shell and Reliance Industries are also expected to enter as government doesn't pay subsidy to private companies. 

Source : CarDekho