The Kirit Parikh Committee had recommended deregulating petrol and diesel prices. Economist and energy sector expert Parikh, the author of the report spoke to Hindustan Times as most of the recommendations made by the committee under him have been accepted that the petrol and diesel deregulation would knock off at least Rs 25,000 crore in subsidy.
Are you satisfied with the decision of the government to free petrol and diesel prices?
Very much. I am extremely delighted as most recommendations stand accepted. Even as the LPG and kerosene price hike is not enough but a move has been made and I am happy with it as this is an excellent sign. The decision on petrol and diesel price decontrol will ultimately benefit the consumers.
But diesel price de-control will be done in phases?
That’s fine as long as the intent to do it exists. Even though this will take time, the fact that a decision has been taken in principle to make the price of this fuel market-driven is a step in the right direction.
Is this system sustainable in a politically sensitive country like ours?
I am sure consultations on this front must have taken place before such a decision. Petrol and diesel deregulation would knock off at least Rs 25,000 crore in subsidy.
The government will continue to subsidise LPG and kerosene and companies like ONGC and OIL will be sharing this too?
Is it correct to rob Peter to pay Paul? ONGC is also a gainer from today’s decisions. The new subsidy formula will be worked out by the government. We have in the report recommended a formula for excess burden charging for additional price increases above certain level from ONGC