No increase in Diesel price till May

New Delhi: Consumers might be spared an increase in diesel prices for the time being. The reason: An already high inflation makes such a move risky for the government in view of the coming state elections. The elections will be over in mid-May.




The decision to decontrol diesel prices was yet not off the government's agenda, said afinance ministry official. However, he said it would be taken up only after the elections.



Rising crude oil prices have become a headache for the government, as they put pressure on inflation and fiscal deficit (in the form of higher oil subsidy).



While the government decontrolled petrol prices in June last year, it is reluctant to allow oil companies to pass on the full burden of high crude oil prices to consumers.

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