Rising prices and blinding inflation may soon reach unprecedented heights as Indian government may announce further increase in the price of diesel.
C Rangarajan, Chairman of Prime Minister's Economic Advisory Council, has said that the potential hike could take effect any time in the next two months.
When he was asked if diesel price rise could take effect in the next two months, he said that he thought it would happen.
However, he added that the council’s role was just to recommend what needed to be done, and the final decision would be taken by the government.
Speaking on the topic, he said, “The decision finally will have to be taken by the government as a whole. Several ministries are involved in this... I think our role is only to indicate what needs to be done..."
Earlier, around a week back, sources with knowledge of the matter said that the Indian government had plans to increase diesel price by Rs. 5 per liter after the conclusion of Parliament sessions.
However, it would not be easy for the coalition to increase prices of diesel because any increase in diesel prices will put cascading effect on the prices of all essential commodities, and attract harsh resistance from the opposition and the public.