Jaipal Reddy rules out deregulation of diesel prices

Oil minister S Jaipal Reddy, who replaced Murli Deora in the ministry last week, on Thursday said deregulation of diesel prices is not politically or practically feasible.

Ruling out regulating diesel prices at this point, Reddy told reporters here, ?It is not possible right now.?

While supporting deregulation of diesel prices in theory, he said present situation did not permit it.

?Let me make it clear, I agree in theory that diesel prices should be deregulated, but whether it is practically and politically feasible is totally different,? Reddy said.

Reddy is faced with task of ensuring that fuel prices do not shoot up further after the prices were revised upward half a dozen times in a couple of months under Deora.