Diesel prices to go up by Rs 10 in 2013: oil secretary

Diesel prices are likely to go up by Rs 10
per litre over the next 10 months while
Kerosene prices may be hiked by Rs 10
per litre over the next two years,
according to the petroleum secretary.
The last revision in diesel prices, which is
regulated by the government, came in
September. Diesel prices were hiked by a
steep Rs. 5 a litre then.
The government currently gives a subsidy
of around Rs 14 litre on diesel. High
subsidies have widened the government's
fiscal deficit, limiting its elbow room to
spend on infrastructure and development
schemes.
In November, subdued tax revenue and
higher spending on subsidies forced the
government to revise its fiscal deficit
target to 5.3 percent of gross domestic
product (GDP) for the current financial
year from a previous target of 5.1
percent.