The outgoing UPA government has recommended a sharp increase in cooking gas and raising diesel prices to international levels in one shot to deregulate the fuel, making it politically easier for the Narendra Modi regime if it wants to undertake politically sensitive measures to cut subsidies. The cabinet had deregulated petrol price in June 2010. It had also approved decontrol of diesel, but this decision was never implemented. If prices are deregulated, it would fully open the fuel retailing market for companies such as Reliance Industries and Essar Oil.
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