Temporary Smile 3.37 Price cut
Today Modi's government announced one of its biggest reforms by deregulating Diesel price. (Earlier in UPA Government Petrol prices were deregulated) Why Diesel matters much? In India, the fuels like Diesel, Kerosene, Domestic gas prices are controlled by Government. So Government only fix the prices. Market price may be high or low, but Government will fix the price of Diesel. UPA government had decided to raise diesel price in small dose until it align with market price. With continuation to that Diesel price are raised 50 paise every month & in past 19 months Diesel price are raised by Rs. 11.81 per liter. Now market price of crude oil nearly falls under $80 due to global situations. but keep in mind its not permanent. We can't or even US can't predict the oil price. It will be in fluctuation through out the year. As of now the price is below 80 $. but you cant expect the same through out the year. Lets take an small example to explain