It appears that partial deregulation of diesel is here to stay, and Oil Minister Veerappa Moily has ruled out the possibility of a rollback in diesel prices.
If the hike is 50 paise every month, by the end of January 2013, consumers will have to pay Rs 47.65.
The BJP, however, did not make its stand clear on whether it was in favour of deregulation of diesel prices or not.
Veerappa Moily said that the government is following the suggestions of the Kelkar committee which advised total decontrol of diesel pricing.
The government has given authority to the oil marketing companies to change diesel prices by a small margin from time to time.
The subsidy on diesel is Rs 96,000 crore while LPG subsidy is Rs 9,000 crore which is very small in comparison to that of diesel.
By revising rates, the government is trying to cut an unprecedented Rs 1.6 crore revenue loss expected from selling LPG, diesel and kerosene below cost this fiscal.
The Petroleum and Natural Gas Minister is considering Rs 4.50 hike in diesel price and Rs 100 hike in LPG.
Union Minister for Petroleum M Veerappa Moily said, Congress would return to power in the state.
The year also saw a change of guard in the Law Ministry with Ashwani Kumar taking over as the new minister.
The Election Commission asked Union Petroleum and Natural Gas Minister Veerappa Moily to be circumspect in future.
The Election Commission had taken a strong exception to Moily's statements ahead of the elections in Gujarat.
EC has served a notice to Veerappa Moily for announcing that the cap on subsidised LPG cylinders could be raised from six to nine.
The EC held an emergency meeting soon after Veerappa Moily said the Centre was considering raising the cap.
Moily claimed that he had held discussions with the Finance Ministry and an announcement could be expected soon.
Veerappa Moily said even after the capping of LPG cylinders the subsidy burden on it is Rs 36,000 crore.