Finally, some good news! In what can be dubbed as a turn in the "fuel" tale, Indian government has decided to hike the prices of diesel and LPG while slashing the price of petrol by Rs 1-1.50 per litre next week, thanks to the falling international oil rates and appreciating rupee value.

Oil secretary Vivek Rae said the issue of a one-time hike in diesel and cooking fuel rates "is a political and economic challenge" from which "we cannot run away."

"Some burden has to be borne by consuming population. That is the challenge government faces. It is a political challenge, it is an economic challenge. It is a challenge we cannot run away from," he said speaking at an conference organised by Delhi Productivity Council here.

Rae alerted that oil subsidy  has peaked to such unsustainable levels that it has become impossible for government budget and oil companies to bear the burden alone.

"Finance Minister (P Chidambaram) himself has said that the decision has to be considered very carefully. So I guess all aspects will be taken into consideration before deciding what to do next. There are many options available," he said without elaborating.

“Officials said the softening in international oil rates and appreciating rupee will translate into a cut in petrol price on September 15/16. Rae too said that crude prices have come down after reduction in tension in Syria and rupee has also stabilized,” wrote a leading national daily.

(AW: Suchorita Dutta)