After deregulating diesel prices, the government may now propose to rationalise the price of thermal coal, used as fuel for power generation. If implemented, the proposed policy move could lead to a significant hike in domestic coal prices for generating stations and force them to increase tariff.

On Tuesday, the railways had announced its plan to adopt fuel price-linked freight charges, which would lead to a 5-6% jump in coal transportation costs. The Economic Survey 2012-13 tabled in Parliament on Wednesday stressed on the need for adopting market-based pricing for all energy products.