Like how the price of petrol is decided same thing is going to be applicable to diesel too
till now due to major loss for OIL Companies the previous goverment decided to raise price of diesel by 50 paise per month,
so what now
now the diffrence between diesel price and loss faced by the OIL compaines is just 8 paise,
so government decided to dereguralize diesel price, which means it will flexuate like petrol cost
during the past few months we felt 50 paise increase every month for diesel, and petrol price flexuates according to international sittuation, sooner diesel prices also going to dance to the same tune, i felt this maintains a fixed price diffrence between both the fuels
news source : dinamalar tamil daily 2nd sept 2014 edition