New Delhi, January 27: With food inflation ruling at uncomfortable level, Petroleum Minister S Jaipal Reddy today ruled out freeing of diesel prices from government control, saying the move was not politically and practically feasible.
“It is not possible (just now),” he told reporters here.
Decontrol of diesel, as was decided by an Empowered Group of Ministers (EGoM) in June last year, would mean up to Rs 7 a litre hike in the price of fuel that is used in transport sector and has direct bearing on food and general inflation.
With food inflation ruling at 15.57 per cent, any increase in diesel prices just now would fuel further hike in general prices.
–Agencies