New Delhi: The government's decision to deregulate diesel will be advantageous for consumers, Essar Oil said on Saturday.
"We welcome government's decision to deregulate diesel. This will not only help in controlling the fiscal deficit, but also be advantageous for the consumers as they will now pay market rates for the fuel which is lower by more than Rs 3 per litre," LK Gupta, MD & CEO, Essar Oil said in a statement.
Diesel deregulation will also bring the private OMC retail network into system. This will increase competition, benefiting the end consumer, Gupta said.
Commenting on the move to deregulate diesel prices, CII Director General Chandrajit Banerjee said: "The government's decision to deregulate diesel prices is a step in the right direction as it will help cut subsidies and balance the fiscal deficit in the long run."
"This was long overdue. Also, subsidies should be better targeted and not be for those who don't require it," he added.
Welcoming diesel price decontrol, FICCI President Sidharth Birla said, "This is an extremely progressive move and underlines the commitment of the government to push further the agenda of reforms, growth and fiscal discipline."
The decision has come at a time when global crude prices have been receding. "In any case, the price of fuel products such as diesel should reflect the true market value and this would also encourage all users to economise on their diesel consumption and hence aligns with the objective of promoting environmentally sustainable growth," he added.
