Diesel price may come down for first time in 7 years Rajeev - TopicsExpress

Diesel price may come down for first time in 7 years Rajeev Jayaswal, ET Bureau | Sep 9, 2014, 11.52AM IST NEW DELHI: India is considering a cut in diesel prices for the first time in seven years amid global crude price dropping below $100 a barrel for the first time in more than a year, a move that could take some of the sting out of inflation as a patchy monsoon threatens a rise in food prices.That in turn could allow the central bank to ease up on its interest-rate stance at the next mone tary policy announcement, boosting revival prospects. This comes as the government has been considering freeing up diesel prices, since subsidy has been narrowed by incremental, monthly price increases. If this downward trend in international oil prices continues and the rupee appreciates even marginally, there will be over-recovery from this month, said a senior executive at an oil PSU who didnt want to be named.

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