India to decide on ending govt control on diesel pricing after state polls

New Delhi: India will decide on ending government control on diesel pricing after elections in two states next month, an oil ministry source said, even though local prices of the fuel are currently higher than the global rates, making a case for a cut in retail prices.

This is perhaps the first time that retail prices in India are higher than the global rates due to a sustained monthly rise in local prices since January 2013.

“We tinker with diesel prices once a month…There is a case for a cut in diesel prices towards the end of the month but a decision is yet to be taken on that,” the source with direct knowledge of the matter said.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

“The diesel under-recovery has been wiped out and there is over-recovery of 0.35 rupees per litre with effect from Sep. 16,” a government statement said on Tuesday.

Reuters