Saturday, July 04, 2009

FUEL PRICES


Government should end fuel price control: Ministry

NEW DELHI: The government needs to end controls on prices of petrol and diesel to curb

fuel demand, the finance ministry said in its annual economic survey on Thursday. The

announcement comes a day after Asia's third-largest oil consumer raised petrol prices by

10 percent and diesel by about 6.5 percent, but the increase was still smaller than needed

for ending state controls. The survey, presented to parliament ahead of an updated budget

on Monday, listed energy policy issues that needed to be addressed. These included:

"Decontrol petrol and diesel prices. Develop a policy response system and financial buffer

for use when diesel prices rise above the oil equivalent price of $80 a barrel." But analysts

said there were doubts the government would liberalise price policy.

Source:http://www.expressbuzz.com/edition/story.aspx?Title=Government+should+end+fu

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ionID=XT7e3Zkr/lw=&SectionName=HFdYSiSIflu29kcfsoAfeg==&SEO=

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