Diesel prices to go up by Rs 5 per litre.

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The government has finally bitten the diesel bullet. The cabinet has taken a decision to increase prices by Rs 5 per litre or 12 percent. The hike is effective midnight September 13, 2012. This is the first time the government has increased diesel prices in the last two years.

In June 2010, the government had de-regulated petrol prices and differed a decision on doing the same for diesel because of its political implications. The decision to increase diesel prices is part of the government’s plan to rein in its burgeoning subsidy bill.

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