India: Oil Firms Reiterate Call for Diesel Deregulation
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Monday, 12 December 2011 |
India’s energy companies have once again called for full deregulation of diesel prices, saying that the current situation is preventing expansion of a fuel retail network. "Unless diesel is completely deregulated we will not go for major expansion in our retail outlets," said Essar Oil Chief Executive Officer Lalit Kumar Gupta.
His comments were echoed by P Raghvendran (pictured), the head of Reliance’s refinery business. Speaking on the fringes of an industry conference, Raghvendran said the company was only operating 600 of its 1,400 fuel service stations, and that a “level playing field” was essential to any expansion.
While Government controls on gasoline prices ended in June, the price of diesel remains regulated in an effort to control inflation. State-run firms have been compensated for the losses incurred by the policy, however, creating a disadvantage for privately run firms. “The world has to be the same for everyone,” noted Raghvendran.
PetrolWorld 12122011
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