India & it's government have taken the first step toward's de-regulating diesel prices. The government has just announced that oil companies are now allowed to increase diesel prices from time to time. While diesel prices are still not de-regularised, this move does give the OMC's some liberty in adjusting diesel prices to market conditions. Source: NDTV Profit. Looks like the government is serious about raising diesel prices by Rs.10 per liter over a period of 10 months as was reported earlier. The only point is that there were some reports that the government was planning to tax diesel car's at the time of purchase, the amount being talked about was between Rs.80,000 to Rs.1,50,000. If the diesel prices are being partially freed up then I hope better sense prevails and the budget does not bring further bad news. They are also planning to raise excise duty to 14% from 12% now in the budget. Service tax it seems is also being planned to be hiked to about 14%.