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Govt bites subsidy bullet: Diesel price hike of Rs. 5, allies want rollback

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The government has raised the price of diesel by Rs. 5 per litre, prompting angry responses from allies Mulayam Singh Yadav and Mamata Banerjee, who have demanded a rollback. The price hike is aimed at reining in the fiscal deficit and staving off the threat of becoming the first in the BRICS (Brazil-Russia-India-China-South Africa) group of emerging economies to be downgraded to junk.

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