India surprises with step forward on freeing diesel prices

India’s government gave fuel retailers some leeway to raise prices of heavily subsidised diesel, distancing itself from an unpopular policy ahead of elections while trying to revive an economy growing at its slowest pace in a decade.

Fuel subsidies are a drain on India’s finances and the government is struggling to bring the deficit within a target of 5.3 per cent of gross domestic product for the financial year ending March. India is the world’s fourth biggest oil importer.

via Business feed http://www.scmp.com/business/economy/article/1130845/india-surprises-step-forward-freeing-diesel-prices