The Chief Economic Advisor, Kaushik Basu has supported decontrol of diesel prices in a small and intelligent way to safeguard the country from spiraling global crude prices. While, the report on the deregulation of diesel prices are under preparation as part of Prime Minister’s inter-ministerial group on inflation, Basu has emphasized that a price is a signal of economic situations and it’s not practical to control it completely, as it may cause rise in other prices. Hence consumption should be controlled according to the price fluctuation.
Further, he cautioned that shield cannot be provided in case of continuous rise in global crude prices, as for now the float will be partial where the consumer is covered fairly and prices are allowed to go up and down.
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