The union government has been working out plans to decontrol prices of petroleum products as it does not want to miss golden the opportunity came after significant decline in global crude rates. The proposed lifting of administrative control over petroleum products will enable oil marketing companies to automatically adjust prices in lines with fluctuations in global crude prices.

The Economic Survey for 2008-09, tabled in parliament on July 2, said, "It was clear that the respite would be temporary and that this provided a golden opportunity to reform the pricing and control system."

The reform in pricing system is on government's agenda in the backdrop of fall in global crude oil prices to $30 from peak level of $150 July last year. Union cabinet has directed the oil ministry to discuss price deregulation issue with the finance ministry and the Planning Commission.

The government, who recently raised petrol prices by Rs 4 and of diesel by Rs 2, is expected to take final decision to end oil subsidies and decontrol prices very soon. The Economic Survey maintains, "Develop a policy response system and financial buffer for use when diesel prices rise above the oil equivalent price of $80 a barrel."