The government has asked the oil marketing cos to decide the diesel price from time to time. While the cap on subsidised LPG has been hiked to nine cylinders from April 2013, diesel price changes have been left to the oil companies. With this, the decks are clear for the first hike happening tonight only. Consumers can expect a significant rise in the prices of all essential commodities like foods, vegetables and fruits as the transportation costs go up.
There will be phased, small changes over time. The oil cos will raise the diesel prices marginally until they can recover the Rs 9.60 per litre loss they incur currently. India imports more than 80 % of its fuel need. It had liberalized petrol prices in June 2010 but continues to regulate diesel prices.