There are chances that the prices of diesel in India might be hiked post the presidential elections which are due on July 19, 2012. The prices might be hiked as the Indian government plans to take bold measures to rein in run-away fiscal deficit.

AsiaBizz sources from the top oil ministry said that the price increase is inevitable but the date and time cannot be predicted. The prices of diesel have not been raised since June 25 last year, while the state-owned oil firms sell the fuel at the cost of Rs. 10.33 per litre.

Reports say that the diesel prices might be increased after the presidential elections are over. In June 2010, a high powered ministerial panel had decided in-principle to deregulate the diesel prices.

Diesel is now the most consumed fuel in the nation which is tightly controlled by the government. The Empowered Group of Ministers (EGoM) has not met since June 25, 2011. The EGoM is authorized to decide on the diesel pricing. The panel was earlier headed by Pranab Mukherjee Last month Mukherjee resigned as the finance minister to contest the presidential elections on July 19, 2012. Reports also say that the state owned oil firms are unlikely to change the petrol prices in the next few days.