Posted on July 1, 2010

The Prime Minister, Mahoman Singh, has announced that state control will be removed from diesel prices, following on from the liberation of the petrol market last week.  This may cause freight rates to rise.  Freeing diesel prices will increase inflationary pressures as diesel suppliers use the opportunity to increase prices – freight costs are expected to increase, and as freight trucks carry most of the fruits and vegetables to the markets every day, rising freight costs will lead to higher good prices.


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