Government will decide on the diesel price deregulation after the state polls. Local prices of fuel are currently higher than global rates, considering which, there should be a cut in retail prices, however, the government plans to end subsidies on diesel pricing in two states next month.
Diesel prices started with a monthly rise since January 2013, and this is the first time local prices are higher than the global rates. The government is still not sure if the cut in diesel prices should be allowed.
The under-recovery of diesel has been taken care of and there is an over-recovery of Rs. 0.35 per litre since September 16, 2014.
Source – ET Auto