After a spike, losses on sale of diesel have fallen by nearly a rupee to Rs 2.49 per litre as international oil rates have moderated. The difference between the cost of diesel production and the retail selling price had more than doubled to Rs 3.40 a litre in the first half of July as violence in Iraq spooked international oil markets. The losses have now moderated to Rs 2.49. The Narendra Modi government has continued with the previous UPA regime's decision to eliminate subsidy through small doses of monthly price increases.
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