(This article was originally published on October 22, 2014)/p NEW DELHI: The government on Saturday eased diesel restrictions while maintaining a cushion of 56 paisa per liter. Officials said this would protect consumers from the recent international fuel crisis. Prices have soared.

The government decided to relax diesel regulations after every company started charging an exorbitant price of Rs 3.566 per liter. The move helped the government reduce petrol prices by Rs 3 per liter and maintain a profit of 56 paisa amid volatile international oil prices to meet the emergency, sources said. On Saturday, the government announced a drastic reduction in the retail price of diesel in Delhi by Rs 3.37/liter Including Rs 12.5 percent local tax.

Sources said the government has also reached a tacit understanding with the state-owned oil marketing companies. The government will protect customers if international diesel prices spike in the near future. India’s retail fuel market is led by Indian Oil Corporation Undertaking (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), which informally consulted with the government before raising petrol prices, but lifted the provision after deregulation in 2010. It’s done.

The government is concerned that the downward trend in international oil prices that began last month could reverse at any time. “That is why the government did not reduce the price of diesel when the companies at 99. The government did not reduce the price of diesel when it first reported a rebound of 35 paisa in the middle of the month, a profit that had increased to Rs 1.90 per liter, but the government decided to wait for the profit to increase. A senior government official with direct knowledge of the matter said that the price was Rs 3.56 per liter from 10, he said Month 16 since date.

The current profit is 56 paisa per liter, the source said. Diesel is not included in the revenue of fuel retailers. The resulting money will reduce the government’s fuel subsidy to some extent,” a government source said. The government, which still controls consumer prices of cooking gas and kerosene, expects the total petroleum subsidy to reach about Rs 7,500 crore in 2014-15. About 127,000 is higher than previous estimates At that time diesel was a controlled fuel and international oil prices were low.

Brent crude is currently hovering around $86 a barrel, after falling below $84 on October 15 due to oversupply.