In a recent development, the government of India has now permitted oil marketing companies to set the prices of diesel in India. Just hours after the decision, retailers have decided to increase the prices of fuel in the country. There are possibilities that oil companies might increase the price of diesel by Rs 0.45 without taxes, by January 18, 2013.
However, in some good news for petrol vehicle owners the price of the fuel is likely to come down by Rs 0.25 after a price rise of Rs 0.35 was observed earlier this week. Petrol prices are purely market-determined, while the price of diesel is under the control of the Indian government. Now oil firms can make minor revisions to the price of diesel as well.
Sources have also said that oil companies are discussing the possibility of selling diesel to bulk users. Oil companies can now raise the prices of diesel by up to Rs 0.50 per month. Even the cap on subsidized cooking gas has been increased from six to nine per year. There is also speculation in certain corners that the government would announce an increase in the price of diesel, but oil minister Veerappa Moily said that the decision has been left to the marketing companies.