The Congress-led UPA Government is aiming to fully deregulate the prices of currently subsidized diesel within the next six months, Union Petroleum & Natural Gas Minister Veerappa Moily said.

Mr. Moily said the government would be able to completely deregulate diesel e prices in case rupee gains strength against the dollar and the global oil prices fall.

Speaking on the topic, "In six months, diesel sector will be deregulated. We are already going in that direction. If the rupee appreciates and international oil prices drop, we will be in a position to completely deregulate."

Government-run oil marketing companies are already increasing diesel prices on monthly basis; and at current rates, it will consume nearly nineteen months to wipe off subsidies on the fuel.

Mr. Moily also assured that the government had no plans to make a one-time steep increase of Rs 3-5 a litre in the price of diesel to bridge the gap.

A few weeks back, the Kirit Parikh-led committee had recommended that diesel price should be hiked by Rs 5 a litre immediately and by another 50 paise a litre per month till subsidy on the fuel becomes zero.

Speaking on the topic, Mr. Moily also exuded confidence that Congress and its allies would win in the next year's elections and form a UPA-III government.