In India, the price of petroleum products has been deregulatedmainly to reduce the burden of subsidies given to the oil companies. Deregulation allows companies to price their products on the basis of market prices. This leaves them with little scope of losses. The government's subsidy bill will come down as it will no longer have to reimburse oil companies for selling diesel at below-market price. Last year (2012-13), the government had to pay ₹ 85,000 Crore for as subsidy.This year the subsidy burden was estimated much lower at around ₹63,000 Crore.