On October 18, 2014, Govt. Of India announced that it was totally
de-regulating diesel prices. Before this announcement, government
followed a policy of increasing diesel oil prices by 50 Paise per litre
every month. Whatever the international price of crude oil, the idea of
having a monthly increase of 50 paise per litre would be to reduce the
gap between the subsidised diesel prices and the international market
prices.
