Govt may consider rollback of diesel price hike

The government is considering a partial rollback of a hike in diesel prices announced last week as part of a slew of “big bang” economic reforms that have plunged Prime Minister Manmohan Singh’s coalition into crisis.

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A senior source in the ruling Congress party said the rollback was being considered, speaking after a meeting of the senior party leadership. Finance Minister P Chidambaram, however, declined to comment when approached by reporters.

A hike in diesel prices and other reforms such as retail liberalisation prompted the government’s biggest ally to withdraw from the coalition on Tuesday evening.

Reuters