Not possible to deregulate diesel at current prices

Although the government is keen on deregulating diesel, it has remained a distant dream for it.

In an interview to CNBC-TV18, RPN Singh, Minister of State of Petroleum & Natural Gas said, it is not possible to deregulate diesel at current prices.

However, he said, the Finance Ministry is keen on deregulating diesel and may do so, if prices cool off. 

He further said, the government will not deregulate kerosene and domestic LPG. “We will continue to subsidise kerosene and domestic LPG,” he added.

The government, he said, is mulling options to bring down oil marketing companies' (OMCs) under-recoveries and is looking at limiting subsidised cylinder supply.

Commenting on KG basin, he said, it is unfortunate that the gas production has fallen. “We are monitoring the natural gas production in KG basin. We are certain that RILwill manage to up the gas production.”