Giving some latitude to fuel marketers ahead of the general elections next year, the government has authorised oil marketing companies (OMCs) to hike diesel prices by 50 paisa every month. The first hike came into effect from midnight on Thursday. The small monthly hikes, exclusive of VAT and other taxes, will translate to a hike of Rs 6 annually. The move is expected to provide a shot in the arm to an ailing Indian economy, rein in fiscal deficit while helping oil companies to recover their losses.

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