Govt not considering freeing diesel prices: Oil Sec

The government today said it would not free diesel prices from its control in hurry as the move would lead to sharp rise in price of fuel most used in the transport sector.

"There is no thinking at this juncture to move any further," Oil Secretary S Sundareshan told reporters here.

The government, on June 25, had decontrolled petrol price and had said that diesel would move at free price regime shortly. At that time, an ad-hoc Rs 2 a litre increase in diesel price was effected.

"The June decision was taken when crude oil price was at$73-74 a barrel. Sine then it has risen to $82-83 a barrel and it will be unfair to think that diesel price will be market determined at these levels," he said.

Freeing of diesel prices now would mean a further Rs 2.01 a litre increase in rates which will have cascading effect on the already high rate of inflation.

Since June 25 decision, petrol prices have been raised twice ... Once in September and second time during the last week to reflect the rising trend in international crude oil prices.