Totally imperfect

Partial deregulation has its perils, sometimes causing worse distortions than in a regulated regime. There is no better illustration of this than fuels and fertilisers. Currently, the petrol price is deregulated and it has, since April 2010, risen from Rs 47.93 to Rs 66.84 a litre in Delhi (including last week's revision by oil companies). But the diesel price, being controlled by the Government, has gone up just from Rs 38.1 to Rs 41.29 over this period. 

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