New Delhi: It will take at least another 28 months before the under-recoveries on account of sale of diesel can be eliminated. Addressing the India Energy Congress on Thursday, Planning Commission deputy chairman Montek Singh Ahluwalia said: “Diesel is on a progressive elimination of subsidies and by mid-2015, present under pricing of diesel will be removed.”

Partial decontrol of diesel prices were recently announced by the government. This has allowed the oil marketing companies to increase the prices of diesel by up to 50 paise per litre every month in order to recover the under-recoveries of around R10/litre.