Kolkata: Fearing an inflationary impact, the UPA government is reluctant to decontrol diesel prices said Kirit S Parikh who heads the panel constituted by Prime Minister Manmohan Singh for oil pricing reforms.

In a programme on Friday, Parikh said, “Government can decontrol diesel any day if it wants, but it realises that it is not a healthy move at a time when the inflation rate is already high.” To provide an opportunity to private players, the panel has already recommended the decontrolling of fuel prices.

Parikh said the unwillingness of the government to adopt the reform was also due to political pressure. He said, “The government can reduce the taxes and decontrol diesel without raising the prices, however our recommendation is yet to receive a feedback.”

It is worth mentioning that Government has already decontrolled petrol prices.