Government should consider diesel deregulation: PMEAC Chairman C Rangarajan

NEW DELHI: Prime Minister's Economic Advisory Council Chairman C Rangarajan today said the government should consider decontrolling diesel prices to keep petroleum subsides at the budgetary level.

"I think some action will be required on diesel deregulation in order to keep petroleum subsides at the budgetary level," said PMEAC chairman Rangarajan.

"Some policy decisions will be required, I think finance minister Pranab Mukherjee must be referring to that (diesel deregulation)...," he told reporters on sidelines of Skoch Summit here.

Last week, Oil Minister S Jaipal Reddy had underlined the need for having a relook at petroleum product prices, but had said the government was not contemplating decontrol of diesel rates just yet.

"As of now, we are not contemplating deregulation of diesel prices," Reddy had said.