India will decide on ending government control on diesel pricing after elections in two states in October, an oil ministry source said, even though local prices of the fuel are currently higher than the global rates, making a case for a cut in retail prices.
This is perhaps the first time that retail prices in India are higher than the global rates due to a sustained monthly rise in local prices since January 2013.
"We tinker with diesel prices once a month...There is a case for a cut in diesel prices towards the end of the month but a decision is yet to be taken on that," the source with direct knowledge of the matter said.
"The diesel under-recovery has been wiped out and there is over-recovery of 35 paisa per litre with effect from September. 16," a government statement said on Tuesday.
