Moody’s expects new govt to increase retail selling prices of controlled fuel products
Picture for representational purpose (Photo: DC archives)
New Delhi: Diesel prices are likely to be completely deregulated over the next 12 months as monthly increase in rates bridge the gap between cost and retail price, rating agency Moody’s said on Wednesday. Moody’s expects the new government to increase the retail selling prices of controlled fuel products —kerosene and liquefied petroleum gas (LPG) — to help control its subsidy burden.
The the government, in it view, is most likely to go for staggered increases, similar to the ongoing 50 paisa per litre hike in diesel prices every month. This is because, while a one-time price increase will have a more immediate impact on reducing the burden, it would also be more challenging to push through, given the need to control inflation.
( Source : PTI )
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