New Delhi: The Union Cabinet on Saturday decided on making some major reforms in the oil and gas sector. The Cabinet has given its nod to de-regulate the diesel prices, linking it to the global markets like that in the case of petrol, said Finance Minister Arun Jaitley.
In this regard, the price of diesel would be slashed by Rs 3.37 per litre in Delhi with effect from midnight. In other states, the reduction would vary in accordance with the state tax.
The Cabinet also approved the new gas pricing formula of USD 5.61 per unit, much lesser than the gas pricing formula coined by Rangarajan Committee formed by the previous UPA government. The Cabinet modified the Rangarajan formula to bring down the increase in rates from USD 8.4 to USD 5.61, Finance Minister Arun Jaitley said. The new formula will be effective November 1 and rates will be revised every six months with the next revision being on April 1.
The Cabinet has also decided to re-launch the Direct Benefit Transfer scheme started by the UPA government. It will be re-launched in a more effective manner, said the Finance Minister.
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