A dieselised economy

That the government’s refusal to rationalise the price of diesel in India is blowing a hole right through its Budget estimates for 2012-13 and its own credibility – leading to a further widening of the fiscal deficit and worsening of long-term inflationary pressure – is well known. Even a hike to take into account increased global oil prices has been endlessly postponed, and now it looks like it won’t happen at all, because of the weak monsoon. 

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