Govt's move to deregulate diesel prices will have very adverse impact: D Raja

Communist Party of India ( CPI) leader D Raja on Saturday opposed the government's move to deregulate the prices of diesel, saying such a move will have a cascading effect on the prices of all essential commodities and put further stress on the people.

ANI| Updated: Oct 19, 2014, 00:28 AM IST

New Delhi: Communist Party of India ( CPI) leader D Raja on Saturday opposed the government's move to deregulate the prices of diesel, saying such a move will have a cascading effect on the prices of all essential commodities and put further stress on the people.

"Right now, there is a fall in the price of crude in the international market that might have influenced the government's view to deregulate the diesel. Earlier, petrol price was deregulated and now diesel is being deregulated. In the long run, this will have a very adverse impact and it will have cascading effect of increasing prices of all the commodities," Raja told ANI here.

"By deregulation, the oil marketing companies are being given freedom to do whatever they want. This will burden the common people. I do not think this is a wise move by the government," he added.

The prices of diesel in the country stands reduced effective from midnight following the decision taken by the Cabinet Committee on Economic Affairs (CCEA) to deregulate the prices of diesel.

"The first decision today was to deregulate the price of diesel. Henceforth, like petrol, the price of the diesel will be linked to the market. And, therefore, depending on whatever is the cost involved that is the cost element which the consumers will have to pay," Finance Minister Arun Jaitley told the media here.

"And obviously over the last five years, the prices have increased pursuing to the decision of the UPA Government. The price was being increased 50 paise every month. And because there is a reduction in the international crude prices while we are linking it to the market today, it automatically follows that the price today would stand reduced," he added.

Consequent to the government's decision to deregulate diesel prices, Indian Oil Corporation (IOC) chairman B Ashok said: "We have decided to reduce the prices. And in Delhi, the prices are likely to go down by Rs 3.37 per litre effective midnight."