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Gas price fixed at $5.61/mmbtu, diesel cut by Rs 3.37/l

India announced on Saturday that it would life controls on diesel pricing with immediate effect, leading to an immediate fall in pump prices of nearly 6 percent and easing the subsidy burden on Prime Minister Narendra Modi’s government.

Gas price fixed at $  5.61/mmbtu, diesel cut by Rs 3.37/l

India announced on Saturday that it would life controls on diesel pricing with immediate effect, leading to an immediate fall in pump prices of nearly 6 percent and easing the subsidy burden on Prime Minister Narendra Modi’s government.

“Henceforth, like petrol, pricing of diesel will be market determined,” Finance Minister Arun Jaitley said after a cabinet meeting.

The Rs 3.37 (USD 0.05) a litre cut in prices of diesel, triggered by falling global oil prices, will help ease inflation that has already fallen to a multi-year low.

“We have decided to reduce prices and in Delhi, prices are likely to go down by Rs 3.37 a litre from midnight tonight,” said B Ashok, chairman of Indian Oil Corporation, the country’s biggest fuel retailer.

The move is likely to boost the role of private market players like  Reliance Industries and  Essar Oil in India’s retail arena.

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