India's government faces heat over hike in diesel price

NEW DELHI – India’s government is facing angry protests from its political allies as well as the opposition after it raised the price of diesel fuel in a bid to curb its ballooning fiscal deficit.

The government raised the price of diesel by five rupees a litre late Thursday.

The price of diesel is regulated and kept much lower than gasoline prices in India.

But the government has been under intense pressure to reduce its fiscal deficit by cutting spending for subsidies, particularly on fuel.

The government has also announced a reduction in cooking gas subsidies.

The move faces sharp criticism because of the impact it will have on India’s poor and middle class.