Some industry observers and experts are not satisfied with the move to de-control diesel prices partially by the government and they seek more aggressive steps on this front.
It may be recalled that recently, the government allowed oil marketing companies (OMCs) to raise diesel prices by 40-50 paise every month for retail buyers of diesel and allowed them to charge market price for bulk diesel consumers.
Some experts feel that partial de-regulisation of the diesel would not solve the problem of under-recovery incurred by state-run OMCs.
Oil and Gas expert, Kirit Parekh said the government needs to act more aggressively in the oil on gas sector as prices need to be successively increased by 40-50 paise per month.
Given the recent increase in the prices of world crude oil by one and half rupees, government is way too behind the international price and partial increase will not de-regulate any subsidy.
RS Sharma, former Chairman of ONGC called for the alignment of domestic diesel prices with international prices because under recoveries are becoming unmanageable.
Experts urged government to encourage investment of state-run firms in the country itself (noting the move by these firms to invest outside the country) as it would promote employment and support investment and the economy.
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