Ultimately Government has taken the top decision to hike the Diesel Price. It was long overdue but was postponed again and again due to political fear & Compulsion.
The reaction will be too much from opposition although they also know that it is required. Public will get the impact which is nothing new as they have been used to pay high price for each and every product. Government had no option other than to increase it due to the rising fiscal deficit touching to around 6% of GDP. Government also need to convince the International rating agency that they have started taking top & unpopular decision without bothering about the political cost of it. Government Oil Companies have no say as they can not take prudent business decison . This hike will give some reprive to these Companies but the loss can not be covered up as diesel will continue to be sold at a subsidy of INR14.
Diesel price increase always have cascading impact on all day to day product we all buy but no other option to face it now . If we do not take such top decision it will not be very far we may be like the EU Zone Country.
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